Even as automakers develop cars that run on something beyond gasoline, the argument continues over whether hybrids and alt-fuel vehicles save you money in the long run. A new study says they do - with a diesel leading the way.
An annual study by IntelliChoice.com shows most 2009 model-year hybrid and "clean diesel" vehicles deliver a lower cost of ownership compared to their gasoline-burning counterparts. The company concluded that clean diesel technology -- included in the survey (.pdf) for the first time this year -- could be a "game changer" in North American, especially if the Obama Administration adopts a tax program to encourage use of the fuel.
"The survey this year once again supports what we have long argued - that most hybrid vehicles and now clean diesel vehicle offer superior value to standard models," James Bell, editor of Intellichoice.com, said in a statement. "The long-time knock against 'green' car, trucks and SUVs is that their sticker prices do not justify the gas savings. The point we make is that it is not just about fuel. Buyers also need to consider costs such as maintenance and resale value."
That's exactly what IntelliChoice did when it analyzed 51 different hybrid and clean diesel vehicles and compared them to their gasoline counterparts. The survey evaluates five factors -- fuel cost, maintenance, retained value, insurance and taxes and licensing fees -- over the course of five years or 70,000 miles.
Toyota's green darling, the Prius hybrid, came in second with a five-year costs savings of $4,930 over the Camry (remember -- there's no gas-only Prius) and a price premium difference of $1,805. So what took first place?
(Dashboard drum roll, please.)
The Volkswagen Jetta TDI (pictured) took the trophy with a five year cost savings of $6,210 over the gas-burning Jetta and an MSRP premium difference of $2,070.
"Make no mistake that clean diesel cars are now mainstream," Bell said. "The Obama Administration needs to reexamine the legacy of higher tax rates on diesel fuel, which were set long before the switch to the low sulfur formulation required for general consumer use. The time has come to put diesel on a level playing field with gasoline. The Administration could even promote it with lower taxation as is done in Europe."
IntelliChoice.com also took tax credits into account. Of the 51 vehicles in this year's survey, 34 have a lower overall cost of ownership compared to traditional or gasoline only vehicles. This number drops to 23 without the hybrid tax rebate, concentrated primarily among small cars and sedans.
Moreover, if gas were to jump to an average of $4.00 per gallon again, 41 of the 50 alternative-fuel vehicles in the survey would have a lower cost of ownership compared to their gas-powered brethren, assuming the ownership costs stay the same.
As fuel costs go up, hybrids and clean diesels also tend to see an increase in retained value, according to the survey. And despite the common misconception, the data shows that maintenance and repair costs for hybrid and clean diesel vehicles are almost identical for those of gasoline-only vehicles.
Here's a list of the top eight. Yeah, a top 10 list would have been better, but eight is all Intellichoice listed.
Photo: Volkswagen
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