Monday, January 31, 2011

Hybrid Cost Model

I did some simple math to see if the cost of a Ford Escape Hybrid was justified.
The savings of less than $100 per year, including the government subsidy that strives to make this an attractive choice, is not the whole story.  Considering that at about year 6 I will need to spend about $4000 in today's dollars to replace the battery pack, the demise of which is not covered in warranty, I can see that the resale value of this car will decline rapidly to about zero.  I know that the Prius has the highest resale value going, but we are no where near the time and mileage when the batteries are finished, and people realistically add the cost of their replacement into the equation.
So, I am left thinking, Hybrids are not any better than equivalent to gasoline power.  I don't even want to go to the guilt I need to feel, the sense of moral superiority I will feel, and the desirability of changing from boots to Birkenstocks.

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