Gas Prices are Up and Hybrid Sales are Down
04/04/2012 2 Comments
I have posted the latest gas price results HERE. It is interesting that California’s gas prices are going up faster than US prices. Not sure why, but I did find this an interesting statistic, with gas prices soaring, the sale of hybrid vehicles are not soaring as drivers seek more fuel efficient vehicles.
Smart Money has more detail and some insight why car buyer are much smarter than bureaucrats at CARB think they are. Buying a hybrid does not pencil out.
It takes years for a driver to recover that premium, often longer than he or she might intend to own the car. At $4 a gallon, they’ll need four to 12 years to break even on most average hybrid models, according to Edmunds.com. For instance, the best-selling hybrid, the Toyota Prius – which just recorded its best month since 2007 — costs $6,000 more than the comparably-equipped gas-powered Toyota Corolla. At $4 a gallon, the buyer who drives about 15,000 miles a year would need seven years to break even and start seeing a payback in gas savings. That drops to six years if gas prices hit $5 a gallon but rises to nine years if gas prices fall to $3 a gallon.
Experts estimate that gas will have to be over five dollars a gallon, or maybe as highs as seven dollars a gallon, before buyer flock to hybrids. Stay Tuned, we are on our way to five dollars a gallon.