Hybrid cars might be more cost-advantageous than Consumer Reports originally reported
Walter McManus over at Hybrid Cars published a little mea culpa about his recent estimates of the real-world cost of owning and operating a hybrid vehicle. His estimates of the costs from a few weeks ago showed, like the recent Consumer Reports numbers, that most ended up being cost disadvantages for consumers. This means that they cost anywhere from a few hundred to a few thousand dollars more than similar non-hybrid vehicles, even when you figured in reduced gas consumption. The hybrids tested were the Escape, Accord, Lexus RX400h, Highlander, Civic and Prius.
Well, McManus decided to recalculate his numbers using hedonic estimates instead of P. Value, which he used the first time. The results? Five of the six hybrids tested now had cost advantages, some over $9,000. The lone hybrid that still has a disadvantage was the Accord Hybrid, which is the car McManus drives.
[Source: HybridCars.com]
Reader Comments (Page 1 of 1)
dave 11:04PM (5/05/2006)
Okay, I'm no mathemetician but a quick google search for 'hedonic numbers' brings up things like:
"Our government has admitted its Alice in Wonderland hedonic-adjustment exercise has produced numbers so distorted that it doesn't want to show them to you. ..."
"Hedonic Prices and House Numbers: The Influence of Feng Shui"
"For example, the price of a car reflects the characteristics of that car?transportation, comfort, style, luxury, fuel economy, etc."
Not exactly confidence inspiring, those touchy, feely, Feng Shui little numbers.
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David S 11:23AM (12/31/2007)
The typical equation in the labor economics wage equation is called "hedonic": wage is a function of such factors as age, years of education, years of education squared (meaning the wage goes up exponentially for increases in years of education), and one can throw in things like gender, race, quality of the university, grades etc. Just to say that "hedonic" doesn't necessarily mean touch feely.
Bottom line: My 2004 hybrid civic has depreciated a lot less than a regular civic; I can sell if for a couple of thousand more than the non-hybrid equivalent, in addition to having lower fuel costs, lower maintenance (brakes don't wear out nearly as fast), lower insurance, a tax credit, and being able to use the HOV lanes. All that without sacrificing performance, style, or comfort. I'm happy.
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