NEW YORK, May 6, 2008

Hybrid Cars Deserve A Second Look

MarketWatch's Marshall Loeb Says Now May Be The Time To Take The Gas-Electric Plunge

  • Unsold 2007 Prius hybrid sedans sit on the lot of a Toyota dealership in Boulder, Colo. in this file photo.

    Unsold 2007 Prius hybrid sedans sit on the lot of a Toyota dealership in Boulder, Colo. in this file photo.  (AP Photo/David Zalubowski, file)

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(MarketWatch)  Thought about buying a hybrid but have yet to take the plunge? Now may be the time to reconsider. With gas prices high, a hybrid could save you money.

A hybrid is any vehicle that uses both an internal combustion engine and an electric motor. Almost every manufacturer makes their own hybrid. They can come in all different makes from SUVs to compacts. Here are three benefits of hybrids to consider before you run out and buy your next car:

Better mileage.
It's a simple fact that hybrids get better gas mileage than gas powered cars. Take a look at the standard four-cylinder Toyota Camry. According to the EPA, the Camry has a combined highway/city miles per gallon rating of 25. Compare this to the Toyota Camry Hybrid's 33 mpg. The Toyota Prius can do even better with a highway/city rating of 48/45 mpg. Whatever the make, a hybrid can always one up its traditional counterpart on fuel efficiency.

Auto insurance discounts.
Some auto insurers have been offering discounts on insurance for hybrids. Farmers Insurance Group offers a 10% discount, so does Travelers Insurance. The discount does not apply to every state. You'll want to check with the companies to find out if the discount applies to you.

Tax breaks and benefits.
In an effort to encourage consumers to buy hybrids, many states offer tax breaks and other assorted perks. 36 states offer tax breaks up to $5,000 on hybrids. There are additional perks, as well. Certain states are allowing hybrid owners to drive in high occupancy vehicle (HOV) lanes, no matter how many passengers they are carrying. This extends to hybrids that get 50% better fuel efficiency in the city and at least 25% better efficiency on combined city-highway miles over traditional cars.

Of course there are disadvantages to buying a hybrid as well, including a higher sticker price. Hybrids cost on average of $2,000-$3,000 more than a comparable traditional car.

You'll want to take into account your own driving habits when making a decision. With all its benefits, you might find that a hybrid is the car for you.



By Marshall Loeb
Copyright © 2007 MarketWatch, Inc. All rights reserved
Add a Comment See all 18 Comments
by glock4me May 10, 2008 12:34 AM EDT
Free markets should solve this. If they make a reliable product that is more cost effective to operate (looks like fuel will be the biggest factor) then I and millions of others will buy them. Maybe they can put a speaker under the seat to make cool engine noises when under electric power.
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by rf35 May 9, 2008 4:14 PM EDT
Please pardon the typos in that last post...I get "happy fingers" when I''m truly passionate about something.
Reply to this comment
by rf35 May 9, 2008 4:12 PM EDT
Hybrids are OK for the short-term, by hydrogen fuel cells are the answer. $2.00/Kg fuel (could go down). Water exhaust. 0 gasoline.
Honda and BMW alreadt sell them. The US DOE expects the technology to be ready by 2015 (behind the curve, as usual). The only thing missing for HFC cars right this minute is the refueling infrastructure and a willingness of US auto makers to build and market them.

There are species of algae that expell hydrogen as a waste product, so supply need not be an issue. Algae f.arts! Talk about your renewable fuel source!
Reply to this comment
by libh8er May 9, 2008 1:55 PM EDT
Just be sure you change your inverter fluid every 50K miles......if you buy a used one, make sure they produce a receipt showing where this was done. If not, you''re gonna buy yourself a BIG expense.
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by tshirtmud May 8, 2008 10:56 PM EDT
bm6005

Also next year there coming out with a compact car that will get between 800 to 1000 mpg made in India thats runs off of air. There using high compressed air to drive the pistons. It will do 96 mph and they said that would increase. Eourpe will get it in 2009 and the US in 2010.
Reply to this comment
by tshirtmud May 8, 2008 10:50 PM EDT
bm6005

Here a link to the 1978 VW Rabbit diesel specs that gets 56 mpg. Sorry to burst your bubble! Like I said your being conned.

http://www.carsurvey.org/review_75906.html
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by bm6005 May 8, 2008 9:39 PM EDT
tshirtmud

Don''t mean to burst you bubble but there are only a certain amount of BTU''s per unit of fuel no matter what kind you''re talking about. It takes so many BTU''s to move a weight a distance. Even if you eliminate all of the losses in efficiency (typical vehicle not even 50%)the 100 mpg carb is a nice story. I get 50 mpg on my Harley which weighs less than 800 #''s. How do you plan on 100 mpg in a vehicle with a lot of weight (1 1/2 tons) to carry fat as s americans?
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by cyberus-2009 May 8, 2008 7:33 PM EDT
Whats funny is what they are calling a *hybrid* nowadays.

I''m seeing big v-6 engine cars with a battery in the trunk that get 22-25mpg being sold as *hybrids* ... maybe technically accurate I see it as another marketing spin.
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by May 8, 2008 5:22 PM EDT
Diesel may be more expensive per gallon, but diesel vehicles get 20-30% better MPG. So as long as the price difference is not greater than that, diesel is more cost effective.

My Father had a friend who modified the carburetor on a flatbed farm truck, and got 50 MPG, with little or no loss of power, 50 years ago. He took it to the car companies, and they weren''t interested.
Reply to this comment
by tshirtmud May 8, 2008 4:46 PM EDT
By the way the 1980 VW Rabbit wasn''t even a so called Hybred. Go figure.
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by tshirtmud May 8, 2008 4:39 PM EDT
I dont understand this milage *** and why were not getting 200 mpg in this day and age. The 1980 VW Rabbit was getting 56 mpg almost 30 years ago on deisel. 30 years have past and we still cant match that mileage today. Your all being conned by our goverment, oil companies and auto makers. Our goverment taxes gas, the better milage a car gets the less the goverment gets. Think people, THINK!
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by incog-nito May 8, 2008 3:20 PM EDT
The automakers can easily put out regular gasoline cars that get 40-50 mpg and are practical for every day use. It''s been done before, with older technology. Yes, the cars will be smaller and have less power. But do people really need the huge SUVs or close to 300 hp in their daily commuter?
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by incog-nito May 8, 2008 3:16 PM EDT
Hybrids would be a good buy if:

1) They don''t cost $5000+ more than an equivalent gasoline care, so that it would take 5-7 years to recoup the money.

2) They make more of them, so that there''s no shortage and the dealers can''t charge a premium on top of the already expensive price tag.

Until then, hybrids don''t make any economic sense whatsoever.
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by photogeezer May 8, 2008 2:59 PM EDT
The Prius, based on friends'' experiences, is just fine on the highway. I am not yet buying one because of the $4,000 battery replacement and the ridiculous $5K premium I''d pay for the privilege of owning one. Also, Toyota can''t get it though their dense heads that the small station wagon has always been a very useful car. It doesn''t occur to them to square off the rear of a Prius allowing owners to carry building materials, yard sale purcheses, etc.
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by forthepeopl1 May 8, 2008 2:35 PM EDT
LISTEN, I SELL HYBRED CARS, AND ITS NOT FOR EVERYONE, WHY. BECAUSE IT TURN TO GAS POWER AFTER REACHING SPEEDS OF 25 MILES HOUR, SO THATS WHY SO ARE SEEING MORE TAXI BUYING THEM..

SO WHY SPEND THE EXTRA 5000 FOR A HYBRED...THAT 5000 STILL WOULD BUY ALOT OF GAS...RIGHT..
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by ibzjem May 8, 2008 1:29 PM EDT
It''s a step in the right direction, but we need fuel cell cars!! NOW!!!
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by jonathan1cas May 8, 2008 11:50 AM EDT
CBS News missed out again on stories like this. There are at least two companies offing to make Prius into a PHEV with 30 - 40 miles of electric operation without gas engine turn on.

For more information and information on how to live close to work email: jcassidy@prudentialmanor.com
Reply to this comment
by j_flood May 8, 2008 7:34 AM EDT
I have questions about hybrids:
1. Can we re-cycle the batteries?
2. If you''re a highway driver - is a hybrid for you?
3. Why not diesel?
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