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As Hybrid Tax Credits Expire, Edmunds.com Evaluates Payback Period of Hybrid and Diesel Vehicles

SANTA MONICA, Calif.--Fluctuating gas prices, expiring tax credits and economic instability have many consumers wondering if purchasing a hybrid or diesel vehicle is the most cost-effective choice in today’s market. An updated study by Edmunds.com, the premier online resource for automotive information, compares the payback period of the newest hybrid and diesel vehicles compared to their gasoline vehicle counterparts.

“As a general rule, we found that diesels are more affordable than hybrids, taking into account the vehicles’ prices, tax credits and fuel usage”

“As a general rule, we found that diesels are more affordable than hybrids, taking into account the vehicles’ prices, tax credits and fuel usage,�?? notes Edmunds’ AutoObserver.com Senior Editor Bill Visnic, who presents as part of a panel “The Green Car of the Future�?? with representatives from BMW, Toyota and The New York Times, this evening at the Japan Society in New York. Details on the event can be found at www.japansociety.org.

Set forth below are the annual gas savings and payback periods for the latest hybrid and diesel models as compared to their gasoline-driven counterparts:

 

Sample Hybrid Comparisons:

 
Year   Make  

Model

  Federal Tax Credit   True Market Value®   Hybrid Premium   Annual Hybrid Gas Savings   Years to break even
                             
2010   BMW   7 Series       $82,613        
2011   BMW   Active Hybrid 7   $0   $103,175   $20,562   $362   56.8
                             
2010 Cadillac Escalade     $66,992    
2010   Cadillac   Escalade Hybrid   $2,200   $67,140   $148   $801   0.2
                             
2010 Chevrolet Tahoe     $43,160    
2010   Chevrolet   Tahoe Hybrid   $2,200   $47,626   $4,466   $483   9.3
                             
2010 Ford Escape     $23,608    
2010   Ford   Escape Hybrid   $750   $28,261   $4,653   $543   8.6
                             
2010 Ford Fusion     $21,484    
2010   Ford   Fusion Hybrid   $850   $26,229   $4,745   $573   8.3
                             
2010 GMC Sierra     $32,753    
2010   GMC   Sierra Hybrid   $2,200   $35,792   $3,039   $442   6.9
                             
2010 GMC Yukon     $44,883    
2010   GMC   Yukon Hybrid   $2,200   $48,320   $3,437   $483   7.1
                             
2010 Honda Civic     $19,245    
2010   Honda   Civic Hybrid   $0   $22,526   $3,281   $453   7.2
                             
2010 Honda Civic     $17,489    
2010   Honda   Insight   $0   $19,222   $1,733   $434   4.0
                             
2010 Lexus ES 350     $33,702    
2010   Lexus   HS 250h   $0   $33,336   -$366   $894   -0.4
                             
2010 Lexus LS 460     $70,763    
2010   Lexus   LS 600h L   $0   $100,603   $29,840   $277   107.6
                             
2010 Lexus RX 350     $35,913    
2010   Lexus   RX 450h   $0   $40,855   $4,942   $709   7.0
                             
2010 Mercedes-Benz S-Class     $89,254    
2010   Mercedes-Benz   S-Class Hybrid   $1,150   $84,592   -$4,662   $462   -10.1
                             
2010 Mercury Mariner     $23,302    
2010   Mercury   Mariner Hybrid   $750   $28,652   $5,350   $437   12.2
                             
2010 Mercury Milan     $24,346    
2010   Mercury   Milan Hybrid   $850   $26,417   $2,071   $573   3.6
                             
2010 Nissan Altima     $21,476    
2010   Nissan   Altima Hybrid   $2,350   $23,824   $2,348   $364   6.5
                             
2010 Toyota Camry     $24,499    
2010   Toyota   Camry Hybrid   $0   $25,014   $515   $386   1.3
                             
2010 Toyota Camry     $20,924    
2010   Toyota   Prius   $0   $22,918   $1,994   $797   2.5
                             
2010 Toyota Highlander     $27,665    
2010   Toyota   Highlander Hybrid   $0   $33,244   $5,579   $571   9.8
 
 

Sample Diesel Comparisons:

 
Year   Make   Model   Tax Credit   Final TMV   Diesel Premium   Annual gas cost   Years to break even
                             
2010   Audi   A3   $0   $28,413     $1,731  
2010   Audi   A3   $1,300   $28,250   -$163   $1,285   -0.4
                             
2010 Audi Q7 $0 $46,296 $2,654
2010   Audi   Q7   $1,150   $49,266   $2,970   $2,228   7.0
                             
2010 BMW 3 Series $0 $39,209 $2,093
2010   BMW   3 Series   $900   $41,740   $2,531   $1,611   5.3
                             
2010 BMW X5 $0 $46,475 $2,449
2010   BMW   X5   $1,800   $48,229   $1,754   $2,047   4.4
                             
2010 Mercedes-Benz GL-Class $0 $59,237 $2,899
2010   Mercedes-Benz   GL-Class   $1,800   $56,485   -$2,752   $2,297   -4.6
                             
2010 Mercedes-Benz M-Class $0 $47,023 $2,494
2010   Mercedes-Benz   M-Class   $900   $47,565   $542   $2,149   1.6
                             
2010 Mercedes-Benz R-Class $0 $48,092 $2,654
2010   Mercedes-Benz   R-Class   $1,550   $47,986   -$106   $2,182   -0.2
                             
2010 Volkswagen Golf $0 $20,979 $1,804
2010   Volkswagen   Golf   $1,700   $22,910   $1,931   $1,285   3.7
                             
2010 Volkswagen Jetta $0 $21,632 $1,804
2010   Volkswagen   Jetta   $1,300   $22,852   $1,220   $1,285   2.4
                             
2010 Volkswagen Touareg $0 $39,358 $2,654
2010   Volkswagen   Touareg   $1,150   $41,494   $2,136   $2,149   4.2
 

This study assumed the vehicles were sold at the Edmunds.com True Market Value® price, were driven 15,000 miles per year and achieved the Environmental Protection Agency’s recorded mileage for combined city and highway driving. Average gas prices were assumed to be $3.09 per gallon of premium unleaded, $2.81 per gallon of regular unleaded and $2.95 per gallon of diesel. The federal tax credit and current incentives were applied when appropriate. Please note that Ford and Mercury hybrid vehicle tax credits will be eliminated on April 1, 2010, but consumers who order one before March 31 qualify for the credit. Tax credits for Honda and Toyota hybrids have already been phased out.

About Edmunds.com Inc. (http://www.edmunds.com/help/about/index.html)

Edmunds.com Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site. Its mobile site, accessible from any smartphone at www.edmunds.com, makes car pricing and other research tools available for car shoppers at dealerships and otherwise on the go. InsideLine.com is the most-read automotive enthusiast Web site. Its mobile site, accessible from any smartphone at www.insideline.com, features the wireless Web’s highest quality car photos and videos. CarSpace is the most established automotive social networking Web site. AutoObserver.com provides insightful automotive industry commentary and analysis. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit. Follow Edmunds.com on Twitter @edmunds and fan Edmunds.com on Facebook at http://www.facebook.com/edmunds.