Motorists who buy a hybrid vehicle in the belief that it will save them money are mistaken, according to research carried out by the British Columbia Automobile Association (BCAA).
Twelve years after Honda introduced the first gas-electric hybrid vehicle into the mass North American market, car buyers have yet to see the kinds of price reductions that were predicted to occur as hybrids gained popularity and market share, according to the BCAA’s annual Hybrid Cost and Savings analysis conducted in July.
Even with technological advancements, and increased sales and model selection, consumers continue to pay a premium to purchase a hybrid. And, with the introduction of the HST and the corresponding elimination of the provincial sales tax rebate on hybrid vehicles, most hybrid models continue to cost more to own and operate than their conventional gas-powered counterparts.
According to the report, several models come close to their conventional cousins when costs are compared over five years, but only one—the $105,000 Mercedes S400 Hybrid sedan—is less expensive to own and operate compared to its conventional equivalent.
The BCAA study placed 16 hybrid models available in British Columbia and their conventional equivalents side-by-side and compared the purchase, financing and fuel costs over a five year period. The analysis assumes a constant gas price of $1.17 per liter and a driving distance of 20,000 kms a year.
The main differences between the 2010 and 2009 cost studies are the elimination of the provincial sales tax rebate and the provincial luxury vehicle tax, and the price of gas, which last year was $1.04 per litre.
The hybrids that come closest in cost to their conventional counterparts in purchase and operating costs are all the Toyota models (Prius, Camry and Highlander Hybrid), all the Honda models (Insight and Civic Hybrid) and the Lexus HS250h.
