Vincentric Announces 2018 U.S. Hybrid Analysis: Over Half of Hybrids Save Money vs. Similar Gasoline-Powered Vehicles
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BINGHAM FARMS, MI – NOVEMBER 27, 2018 – Vincentric, LLC announced the 2018 U.S. Hybrid Analysis results today with 42 of the 79 hybrids evaluated (53%) having a lower total cost of ownership compared to their closest all-gasoline powered counterpart. This is an increase from the 2017 study in which approximately 40% of the hybrids analyzed were cost-effective.
The average price premium for a hybrid vehicle was $3,687 more than its all-gasoline powered counterpart. The study showed that while hybrids had an average fuel savings of $2,849 and average maintenance cost savings of $401, the average total cost of ownership for hybrids was only $64/year more than the all-gasoline powered equivalents over five years. However, on individual vehicle basis in most cases the lower ownership costs were greater than the hybrid price premium.
Luxury cars had the highest percentage of cost-effective hybrids at 64%, while SUV/Crossovers and Passenger Cars had a lower percentage of cost-effective hybrids at 58% and 53% respectively. The vehicle with the largest savings was the Ford Fusion Hybrid Titanium, showing that buyers could save close to $6,400 over 5 years of ownership compared to the similarly equipped all-gasoline powered version. On the other hand, buyers of the Infiniti Q50 Hybrid Luxe would spend almost $13,000 more to drive the hybrid version of the vehicle over the same period compared to a similarly equipped all-gasoline powered Infiniti Q50 Luxe.
“The number of cost-effective hybrids has increased significantly from last year’s analysis,” said Vincentric President, David Wurster. “Our research shows that the lower hybrid costs for fuel and maintenance now gives buyers a larger variety of cost-effective, eco-friendly vehicles to choose from.”
To determine the 2018 U.S. Hybrid Analysis, Vincentric conducted a statistical analysis of hybrid vehicles to provide consumers and the automotive industry with insightful information on the cost of owning and operating a hybrid. Fuel prices used in the analysis were based on a weighted average over the previous five months. The report also assumes the vehicle is owned for five years and 15,000 miles are driven annually. Vincentric measured total cost of ownership using eight different cost factors: depreciation, fees & taxes, financing, fuel, insurance, maintenance, opportunity cost, and repairs.
Further information regarding the 2018 Vincentric U.S. Hybrid Analysis results for all vehicles analyzed can be requested from marketing@vincentric.com or visit the Vincentric.com Hybrid Analysis Page to view the 42 cost-effective vehicles.
2018 U.S. HYBRID ANALYSISEXECUTIVE SUMMARY
The Vincentric U.S. Hybrid Analysis provides consumers and the automotive industry with information regarding the cost of owning a hybrid vehicle in the U.S. compared to its closest all-gasoline powered counterpart. The 2018 results showed that 42 of the 79 hybrid vehicles analyzed (53%) offered a lower total cost of ownership than their closest all-gasoline powered equivalent. This was an increase from the 2017 study in which approximately 40% of the hybrids analyzed were cost-effective.
The 79 available hybrid vehicles were categorized into either Passenger Cars (39 hybrids), Luxury Passenger Cars (14 hybrids), or SUV/Crossovers (26 hybrids). Of the 14 luxury passenger cars, 9 (64%) were found to be cost-effective while 18 of the 39 (46%) passenger cars and 15 of the 26 (58%) SUV/Crossover were found to be cost effective.
The average price premium for a hybrid vehicle was $3,687 more than its all-gasoline powered counterpart, which was a $35 decrease from 2017 and a $1,635 decrease from 2016. The study showed that while hybrids had an average fuel savings of $2,849 and average maintenance cost savings of $401 based on 15,000 annual miles of driving over 5 years, the average total cost-of-ownership for hybrids was only $319 more than the all-gasoline powered equivalents over five years.
COST OF OWNERSHIP COMPARISON
The Vincentric U.S. Hybrid Analysis demonstrates that in addition to improved environmental benefits of hybrids, a financial case can be made for the purchase of 42 cost-effective hybrid vehicles. The top three hybrid vehicles from each category with the greatest cost of ownership savings compared to the closest all-gasoline powered equivalent are shown in the chart below:
Note: The vehicles highlighted in blue are hybrid vehicles and the vehicles highlighted in gray are their closest all-gasoline counterpart. Additionally, only the first trim of each model was selected to be in the top three of this list. Results assume 15,000 annual miles of driving over 5 years.
The complete list of 42 cost-effective hybrids is shown below:
Note: Results assume 15,000 annual miles of driving over 5 years.
Please contact customer.service@vincentric.com to discuss receiving and licensing the complete analysis results.
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CONCLUSION
With the exception of four vehicles, all of the hybrids analyzed had a higher market price than their all-gasoline alternative, which causes several cost factors to increase including depreciation, fees & taxes, interest, and opportunity costs. Despite the higher purchase price, certain hybrids are still cost effective. It’s important for buyers to look at their needs and the specific models available because depending on the negotiated price, driving patterns, and intended length of ownership a hybrid can often be a smart financial choice.
ABOUT THE U.S. HYBRID ANALYSIS
The Vincentric data team prepared the report to help users understand the financial dynamics of owning a hybrid using automotive cost of ownership as the metric. Factors analyzed included depreciation, fees & taxes, financing, fuel, insurance, maintenance, opportunity cost, and repairs.
Fuel prices used in the study were based on a weighted average over the previous five months rather than the exact prices you might see at a gas station today. This was done to ensure that the analysis reflects current market trends and not market extremes.
The report assumes the vehicle is owned for five years with 15,000 miles driven annually. The numbers shown are U.S. averages, however, the same analysis can be done for any state plus the District of Colombia. The results of the study are forecasts of future results. Actual results will vary from these forecasted results.
ABOUT VINCENTRIC
Vincentric provides data, knowledge, and insight to the automotive industry by identifying and applying the many aspects of automotive value. Vincentric data is used by organizations including Cars.com, Mercedes-Benz, Toyota, NADA Guides, Business Fleet Magazine, Nissan, and many others as a means of providing automotive insight to their clientele. Vincentric, LLC is a privately held automotive data compilation and analysis firm headquartered in Bingham Farms, Michigan.