STUDY: clean diesels and hybrids have cheaper cost of ownership rates than simple gas cars
2009 Volkswagen Jetta TDI - Click above for high-res image gallery
Car sales may be down, but people who are looking for a new ride would do well to consider diesel and hybrid vehicles if they want a lower cost of ownership in the long-term. IntelliChoice.com has released its fourth annual survey of eco-friendly vehicles and has found that standard gasoline cars, while often less expensive up front, just aren't a good deal when compared to clean diesels and hybrids.
IntelliChoice looked at 2009 model year diesels and hybrids and found that, after five years or 70,000 miles, these powerplants cost less than simple ICEs. The survey looked at overall maintenance costs and resale value in addition to fuel savings. Since hybrids and clean diesels are built and sold as top-of-the-line models, IntelliChoice says, they keep their resale value up. Of the 51 cars tested, 35 "deliver a cost-of-ownership that is somewhat or significantly lower than gasoline versions of the same vehicle," said IntelliChoice editor James Bell. Bell singled out the VW Jetta TDI and Mercedes Benz E320 as diesel vehicles that "perform even better than hybrids in saving thousands of dollars in costs and recouping their purchase premium."
CNBC pulls some numbers from the report that show that, for example, the 2009 Volkswagen Jetta TDI may cost an extra $2,070 up front, but it will save the owner $6,210 over five years compared to the standard Jetta. A 2009 Prius costs $1,805 more than a new Camry, but the savings will be $4,930 during the half decade. You can download the study here (PDF).
[Source: IntelliChoice.com, CNBC]
PRESS RELEASE:
IntelliChoice.com Survey Finds Hybrid and Diesel Cars Beat Standard Models on Cost
- 2009 Survey Shows Clean Diesel Models Beat Hybrids in Return on Investment-
IRVINE, CA (July 9, 2009) - IntelliChoice.com's fourth annual survey of eco-friendly vehicles, released today, shows that most 2009 hybrid and clean diesel cars, trucks and SUVs deliver a lower cost of ownership compared to standard versions of the same vehicles. IntelliChoice.com, a long-time observer of how environmental concerns are reshaping the auto market, is the leading source for automotive ownership cost and value analysis and is part of SOURCE INTERLINK MEDIA.
The 2009 IntelliChoice.com Hybrid and Diesel Car survey explores the value of all 2009 model year hybrids and, for the first time, vehicles with clean diesel engines, by evaluating the major factors that determine a vehicle's cost of ownership over a five year period or 70,000 miles. Those factors include Fuel, Maintenance and Repair, Retained Value, Insurance, and Taxes and Licensing Fees.
"The survey this year once again supports what we have long argued-that most hybrid vehicles and now clean diesel vehicles offer superior value to standard models," said James Bell, editor of IntelliChoice.com. "Of the 51 hybrid and clean diesel models now on the market, 35 of them deliver a cost-of-ownership that is somewhat or significantly lower than gasoline versions of the same vehicle. The long-time knock against 'green' cars, 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."
Bell added, "The Obama Administration's recent announcement of unified and aggressive standards on Fuel Efficiency and CO2 Emissions puts even greater focus on the 'green' vehicles in our study. Many of the vehicles listed here will be 'make or break' efforts for their manufacturers as they work to meet new standards by 2016. In many cases, these vehicles already meet and exceed the standards."
Among the top-line findings from the survey:
Clean diesel has the potential to be a game changer. "Clean diesel cars like the VW Jetta TDI and Mercedes Benz E320 <http://www.intellichoice.com/search/new/Mercedes-Benz/E320> perform even better than hybrids in saving thousands of dollars in costs and recouping their purchase premium," said Bell. "Make no mistake that clean diesel cars are now mainstream. 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."
Small cars, sedans and crossovers perform better than large trucks and SUVs. "No surprise here. The Toyota Prius, Honda Civic Hybrid <http://www.intellichoice.com/search/new/Honda/Civic> and even small SUVs like the Ford Escape Hybrid save their owners thousands of dollars over five years. When you begin to move into the larger vehicles, especially big SUVs, you may pay a few thousand dollars more in ownership costs for hybrid cars and clean diesel versions," said Bell.
The higher fuel prices go, the greater value hybrids and clean diesels deliver. "The survey uses a six-month running average of $3.20 per gallon in factoring fuel costs. We expect that gas prices will eventually go up, which increases the savings for hybrid car owners."
Hybrid and clean diesel cars come fully loaded. "Buyers should keep in mind that automakers treat their hybrid and clean diesel models as top-of-the-line products. As such, they are usually loaded with options, and are usually equivalent to the fully loaded versions of gas-powered models. This is because automakers will throw in extra features to justify higher prices."
The Survey IntelliChoice.com's 2009 Hybrid and Diesel Car Survey pits hybrid and clean diesel vehicles against their gas-powered counterparts in the five most important cost of ownership categories. For instance, the Ford Escape Hybrid is compared against the "regular" or gas-only Ford Escape. The list below is a sample of findings from the survey that demonstrates how cost of ownership can offset higher sticker prices.
2009 Model and Trim MSRP Premium 5-Yr Cost of Ownership Savings Volkswagen Jetta TDI <http://www.intellichoice.com/search/new/Volkswagen/Jetta> $2,070 $6,210 Toyota Prius <http://www.intellichoice.com/search/new/Toyota/Prius> (vs. Camry <http://www.intellichoice.com/search/new/Toyota/Camry> ) $1,805 $4,930 Saturn Aura Green Line <http://www.intellichoice.com/search/new/Saturn/Aura> $1,480 $2,185 Mercedes-Benz GL320 BlueTEC <http://www.intellichoice.com/search/new/Mercedes-Benz/GL320> ($1,000) $4,645 Chevy Silverado 1500 Crew Cab 4WD <http://www.intellichoice.com/search/new/Chevrolet/Silverado> $615 $3,821 Ford Escape Hybrid AWD <http://www.intellichoice.com/search/new/Ford/Escape> $4,725 $2,123 Chevy Malibu Hybrid <http://www.intellichoice.com/search/new/Chevrolet/Malibu> $3,050 ($250) Cadillac Escalade Hybrid 4WD <http://www.intellichoice.com/search/new/Cadillac/Escalade> $8,400 ($2,265)
About IntelliChoice.com, Source Interlink Media, and Source Interlink Companies, Inc. IntelliChoice.com, part of Source Interlink Media, LLC, is the market leader in automotive ownership cost and value analysis. Founded in 1986, IntelliChoice.com is committed to empowering consumers to make better purchase decisions by providing independent and essential automotive information and tools. Through the IntelliChoice.com web site, consumers get the help they need to research, compare, configure and price vehicles. The site also connects buyers to the buying alternatives of their choice, including vehicle manufacturers and an online car buying guide. Source Interlink Media is a subsidiary of Source Interlink Companies, Inc. (NASDAQ: SORC), a media and marketing services company. Source Interlink is one of the largest publishers of magazines and online content for enthusiast audiences and a leading distributor of home entertainment products, including DVDs, music CDs, magazines, games, books and related items. Learn more about IntelliChoice.com <http://www.intellichoice.com/> and Source Interlink <http://www.sourceinterlink.com/> .
Reader Comments (Page 1 of 2)
zamafir 1:43PM (7/09/2009)
This will be some startling news to long time diesel owners, and that multitude of people avoiding diesels!
/sarcasm :).
Reply
Mike Z 1:46PM (7/09/2009)
I think the key though is the resale rates.
For example, if Diesel were to return to the cost premium we saw last yet (~$5/gal) the resale rates would reflect this and the economic proposition would decline.
With hybrids, I think the key is simply supply/demand. As more hybrids are sold and the used market for them matures, the resale price will begin to decline.
Either way, my theory is that provided adequate supplies of diesel cars to the market, in the long term the market will likely move the total cost of ownership towards parity.
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why not the LS2LS7? 1:59PM (7/09/2009)
Diesel is also supply and demand. The Prius has been on the market continuously for 8 years and is holding up well on supply versus demand. Diesels have only been available in less than 50% of the last 10 years.
There's no reason to think Diesels won't also drop in resale if more are made available.
Sir.Vix 3:14PM (7/09/2009)
I think with hybrids (well made ones like the prius and fusion and civic hybrid) the resale value will not be largely affected by their supply. I believe that one of the main reasons that they retain their value is BECAUSE OF their efficiency and low cost of ownership and long life. Having many of these cars around will still keep their residual values high.
If ALL cars became super efficient and lasted 50 years then they'd simply hold their value longer, even if everyone had one and they were readily available. I think this is somewhat true on a smaller scale with the hybrids.
Mike Z 3:23PM (7/09/2009)
I think a lot of the hybrid resale is also because they are made from manufacturers whose products generally have a great resale value (Look a the price on a new Corolla vs. a used one)
ale 4:26PM (7/09/2009)
actually the higher gas prices go, the more money diesel makes, especially considering that 06 jetta diesel list for 26-27 thous, some 4-5 thous over sticker. so yea buying a car that Appreciates in value is pretty nice...
why not the LS2LS7? 6:39PM (7/09/2009)
In my area, a 2006 Jetta TDI is listed at $18K (so maybe goes for $17K). And this is in California where Diesels are even more tough to come by than in other states. So at least around here, they are not appreciating in value.
TANKD0G 10:46AM (7/10/2009)
Diesels in the USA are never going to be the cheap and cheerful small car alternative until the government smartens up and adopts the emissions standards of the European countries where they are are actually intended for.
why not the LS2LS7? 1:58PM (7/09/2009)
The reason the Jetta saves more over the Prius in this study is because of the $1300 tax credit the Jetta receives whereas Toyota exhausted their hybrid tax credits years ago. If you are not eligible for the credit (you lease, for example), the Prius is ahead. Prius is going to blow by the Jetta again, especially since it has raised its fuel economy noticeably since the 2009 study here.
I would also love to see how they calculated their fuel figures. The Jetta should have an advantage on the highway, while have a significant disadvantage (as much as 30%!) in the city to the new Prius. The PDF gives no clue.
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Rick 3:10PM (7/09/2009)
But no doubt in my mind, I'd rather drive and own the Jetta.
Gary 3:49PM (7/09/2009)
Personally I believe this study is flawed. It's all supply and demand. At $4 gas prices my 2003 Civic Hybrid with 60,000 miles on it was listed on KBB as going for $14,000. Just recently with 75K on it and cheap (around $2) gas prices we were lucky to get a bit over $5,000 for it. Watch gas prices go back to $4 and I'd be willing to bet it would be worth over $10K again.
With good timing you get back big bucks. Poor timing (and age) and they're worth less than their gas counter parts. How/Why? At 60K miles it's still a decent car. At 120K miles and anyone with a clue about hybrids is going to start to wonder how long that battery pack is going to last and factor in $3-4K replacement costs and deduct that from market value... with an ICE only version you don't have that deduction.
So, sell while the mileage is still reasonable and gas is high and you do good. Sell with high mileage and low gas and you do worse. I don't need a study to tell me this. Common sense and personal experience gave me this answer.
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locoyocal 4:50PM (7/09/2009)
More like retardochoice.com
Please get back to us when a Prius's TCO is lower than a Corolla. (Which will be never, unless prius becomes 100% electric).
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KIB2 5:18PM (7/09/2009)
I'm all about diesel, but as long as I'm getting 44MPG'S with a gas engine i'm not complaining. http://fiestamovement.com/agents/view/58
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bruce 6:30PM (7/09/2009)
There are a few pluses and minuses (for both diesels and hybrids) that this study might not have taken into account:
On the diesel side, based on my own experience with a VW TDI over the last decade or so, it is possible to get either a really good one or a really bad one - and even if you get a good one, you must be prepared to do some of your own dirty work or possibly face devastating repair bills. I have been lucky enough to have almost no major expenses beyond scheduled maintenance, but I have also repaired a few things myself that would have been horribly expensive if I had taken them to a dealer or an average repair shop.
For hybrids I can't speak as much from experience, but the fact that they cut the study off at 70K miles takes the battery replacement issue out of the equation. In reality that might erode the hybrid's advantage somewhat.
Since I bought my TDI when diesel and gas were both well under $2, and also lived through the times when diesel was 50 cents or more higher than gas, I would expect the fuel price difference to come out in the wash over the course of several years - even with both prices almost certain to climb higher in the future.
I'm sticking with the idea that you should just pick the car that suits your "mission" the best. Lots of highway driving? Diesel. Stop-and-go city? Hybrid... or hold out for plug-in EV.
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john1701a 8:15PM (7/09/2009)
Talking about intentional misleading!
The data is for the 2009 Prius, yet the photo is of the 2010 and there is no mention whatsoever about the improvements from that new model... or even it's existence.
The new model offers a definite MPG increase, creating an undeniable conflict for the "cost of ownership" purpose of the document.
54.7 MPG is the summer average from my 2010 as of 3,022 miles... clearly higher than the 51.3 MPG summer average from my 2004.
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john1701a 8:22PM (7/09/2009)
Lots of highway driving? Diesel.
_______________________
No. That's not the case anymore.
I see low 50's while cruising on the highway with my 2010 Prius.
And the emissions are cleaner than "clean" diesel non-hybrids.
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9394 3:50AM (7/10/2009)
On highway @ 65mph, I also get 50mpg on my 07 Prius (in CA).
Nixon 8:55PM (7/09/2009)
Since I actually want to ENJOY my time driving my car, the clean diesels look like my best bet until cheaper electric cars come out.
I say that because the turbo-diesels have one huge advantage over hybrids. They can be tuned to get better gas mileage AND better acceleration (along with removing the top speed limiter).
Now I know that isn't very "green" of me to want to rip around as fast as I can in a car, but too bad. I'm gonna rip around as fast as I can in my car, that is a given fact. So I might as well drive whatever gets the best gas mileage I can get while driving faster than I should. That along with the cost savings makes the clean diesel the clear-cut winner for my personal desires (your desires WILL be different...)
And while I would prefer a BMW 123d, the Jetta TDI almost looks do-able for me with a chip tune on it. I don't know a hybrid currently for sale that gets this amount of power with this MPG (I think the MPG below are based upon euro-cycle so they don't translate directly to US EPA ratings, but the increase with installing the chip is the point):
http://www.upsolute.com/index.php?option=com_upsolute&task=car&id=1943&id_marke=6&id_model=13300
Original UPsolute
Power (hp) 140 hp 175 hp
Power (kW) 103 kW 129 kW
Torque (ft/lb) 236 ft/lb 291 ft/lb
Torque (NM) 320 NM 395 NM
Engine size 1968 1968
Compression 18,5:1 18,5:1
Max Speed 129 mph (207 km/h) 0 mph (0 km/h)
Fuel consum. Highway 47 mpg (5,0l / 100km) 49 mpg (4,8l / 100km)
Fuel consum. Combined 39 mpg (6,1l / 100km) 39 mpg (6,0l / 100km)
Fuel consum. City 29 mpg (8,0l / 100km) 31 mpg (7,7l / 100km)
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why not the LS2LS7? 11:23PM (7/09/2009)
The Ford Fusion hybrid makes more power than that (chipped or unchipped) and about the same mpg (once you adjust for Euro versus EPA figures, much better city, perhaps a few percent less highway).
Nixon 12:57AM (7/10/2009)
Using the stat's from Ford's website:
http://www.fordvehicles.com/cars/fusion/specifications/engine/
Ford Fusion Hybrid
191 hp for a 3,720 lb car == 19.48 lb/hp to push around
136 tq for a 3,720 lb car == 27.35 lb/tq to push around
chipped Jetta TDI
175 hp for a 3,230 lb car == 18.46 lb/hp to push around
291 tq for a 3,230 lb car == 11.1 lb/tq to push around
Smaller numbers mean more push per pound, so the TDI should feel more peppy, even with higher HP rating on the Fusion.
Advantage: TDI
Fusion gets 36 highway, TDI gets 41 hwy without the chip, higher with the chip.
Advantage: TDI
Fusion has a CVT transmission, the TDI can be had with a manual, which is a sportier feel that I like (again, other people's opinions WILL differ, but I'm talking about what I prefer for myself).
Advantage: TDI
Price: The TDI with a chip starts around 23,000, Fusion starts around 28,000, about $5,000 more. TDI gets very good cost of ownership rating, the Fusion isn't rated, but the other Ford hybrids don't do as well as the TDI.
Advantage: TDI
Sure, the Fusion gets 41 city and has an electric-only mode up to 47 mph, while the TDI is only good for 30 mpg city. But less than 1/2 of a mile of my commute is on roads that I drive at 47 mph or less, with the other 14 miles are at 54-74 mph.
Advantage: None. Better city mileage and electric mode does me little good at all.
But yea, the Ford Fusion Hybrid sounds like a pretty good car.... For someone else besides me. And again, I'd still rather have a BMW 123d than either of them.