BCAA's annual hybrid cost analysis: Elimination of provincial tax incentive
make hybrid models less cost competitive
BURNABY, BC, July 21 /CNW/ - Twelve years after Honda introduced the first gas-electric hybrid vehicle into the mass North American market, car buyers have yet to see the kinds of price reductions that were predicted to occur as hybrids gained popularity and market share. Even with technological advancements, and increased sales and model selection, consumers continue to pay a premium to purchase a hybrid. And, with the introduction of the HST and the corresponding elimination of the provincial sales tax rebate on hybrid vehicles, most hybrid models continue to cost more to own and operate than their conventional gas-powered counterparts.
According to the British Columbia Automobile Association's (BCAA) annual Hybrid Cost and Savings analysis conducted in July, several models come close to their conventional cousins when costs are compared over five years, but only one - the $105,000 Mercedes S400 Hybrid sedan - is less expensive to own and operate compared to its conventional equivalent.
BCAA's study placed 16 hybrid models available in B.C. and their conventional equivalents side-by-side and compared the purchase, financing and fuel costs over a five year period. The analysis assumes a constant gas price of $1.17 per litre and a driving distance of 20,000 kms a year. The main differences between the 2010 and 2009 cost studies are the elimination of the provincial sales tax rebate and the provincial luxury vehicle tax, and the price of gas, which last year was $1.04 per litre. New models this year are the Lexus HS 250h and Mercedes-Benz S400.
BCAA's Hybrid Cost Analysis revealed the following:
- The $105,000 Mercedes S400 Hybrid sedan is the only model less
expensive to own and operate compared to its corresponding
conventional model. The S400 is approximately $5,000 less to own and
operate than the closest conventional model, the Mercedes S450.
- The hybrids that come closest in cost to their conventional
counterparts in purchase and operating costs are all the Toyota
models (Prius, Camry and Highlander Hybrid), all the Honda models
(Insight and Civic Hybrid) and the Lexus HS250h.
- Over a five year period, the hybrids that are the least costly to own
and operate are the Honda Insight ($38,326), Toyota Prius ($40,324),
and Honda Civic Hybrid ($42,664).
- Hybrids with the greatest greenhouse gas (GHG) emission advantage
over their gas-powered equivalents are:
- Toyota Prius (55% fewer GHG emissions)
- Ford Fusion Hybrid (38% fewer GHG emissions)
- Honda Civic Hybrid (37% fewer GHG emissions)
- The hybrids with the lowest overall GHG emissions (kg of carbon per
year) are:
- Toyota Prius (1748 kg/yr)
- Honda Civic Hybrid (2070 kg/yr)
- Honda Insight (2162 kg/yr)
- Ford Fusion Hybrid (2352 kg/yr)
"With the elimination first of the federal tax incentive and now the provincial tax rebate, it appears it's still going to be a while before hybrids offer a cost advantage over standard vehicles," says Trace Acres, BCAA's director of corporate communications and government relations. "What we are seeing however, is manufacturers starting to offer price breaks for things like cash sales, so an environmentally conscious consumer may still be able to make a hybrid purchase work financially by shopping around."
When considering a switch to a more environmentally-friendly vehicle, Acres encourages drivers to examine emission ratings as well as sticker prices to ensure the hybrid they choose will provide them with the environment savings they expect.
"BCAA's research shows that cost is not typically the main motivator for someone looking to purchase a hybrid," explains Acres. "We believe that many consumers are willing to pay a bit more to go 'hybrid' if it will reduce their carbon footprint."
About BCAA
BCAA is the largest organization of its kind in B.C., with over 100 years experience and gross annual sales of nearly $400 million from its membership, insurance and travel businesses. A BCAA Membership can be found in the wallets of over 790,000 British Columbians and in one-in-four B.C. households. For the past two years, BCAA has received the highest score in Canada for home insurance customer satisfaction in a J.D. Power and Associates study. And, for the past four years, BCAA has been named one the 50 Best Employers in Canada by international HR consultants Hewitt Associates and the Globe & Mail's Report on Business magazine. To learn more about BCAA's products, services and member advocacy, visit www.bcaa.com. For more information on the BCAA Traffic Safety Foundation visit www.tsf-bcaa.com.
BACKGROUNDER July 21, 2010
BCAA 2010 5-year Hybrid Vehicle Cost Analysis
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Ranked
by
Hybrid Total
Savings Purchase Price 5-year
(or (MSRP) cost
costs) Make & Model Vehicle Type ($) ($)
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Mercedes-Benz S450 Conventional 108,000 150,622
1 Mercedes-Benz S400 Hybrid Hybrid 105,900 145,265
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Honda Civic EX Conventional 24,880 42,374
2 Honda Civic Hybrid Hybrid 27,350 42,664
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Honda Civic DX-G Conventional 20,780 37,154
3 Honda Insight Hybrid 23,900 38,326
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Toyota Matrix XR Conventional 21,800 38,606
4 Toyota Prius Hybrid 27,500 40,324
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Lexus IS 250 Conventional 36,000 58,245
5 Lexus HS 250h Hybrid 39,900 60,084
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Toyota Camry SE Auto Conventional 27,310 44,667
6 Toyota Camry Hybrid Hybrid 30,900 46,815
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Toyota Highlander
AWD V6 SUV Conventional 37,150 60,760
7 Toyota Highlander
Hybrid SUV Hybrid 42,315 63,578
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Ford Fusion SEL I4 Conventional 25,799 44,778
8 Ford Fusion Hybrid Hybrid 31,999 49,260
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Ford Escape XLT SUV Conventional 27,999 49,497
9 Ford Escape Hybrid SUV Hybrid 34,899 54,388
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Nissan Altima 2.5S Conventional 24,495 41,194
10 Nissan Altima Hybrid Hybrid 33,398 50,053
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Cadillac Escalade Conventional 84,575 128,985
11 Cadillac Escalade Hybrid Hybrid 94,775 138,740
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Lexus RX 350 Premium SUV Conventional 46,900 73,403
12 Lexus RX400h Hybrid SUV Hybrid 59,500 84,941
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Chevrolet Silverado/
Sierra Pickup Conventional 31,845 58,991
13 Chevrolet Silverado/
Sierra Hybrid Pickup Hybrid 47,505 74,679
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GM Tahoe/Yukon SLT SUV Conventional 54,045 83,647
14 GM Tahoe/Yukon Hybrid SUV Hybrid 68,255 101,635
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Lexus LS460 L Conventional 103,150 145,813
15 Lexus LS600h L Hybrid 119,950 168,382
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Lexus GS 350 Conventional 52,500 82,504
16 Lexus GS 450h Hybrid Hybrid 71,900 103,889
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Ranked 5-year
by hybrid
Hybrid saving / Reduction
Savings (extra CO2 in CO2
(or cost) emissions emissions
costs) Make & Model ($) (kg/year) (%)
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Mercedes-Benz S450 5474
1 Mercedes-Benz S400 Hybrid 5,357 4370 20%
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Honda Civic EX 3266
2 Honda Civic Hybrid (290) 2070 37%
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Honda Civic DX-G 3266
3 Honda Insight (1,172) 2162 34%
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Toyota Matrix XR 3664
4 Toyota Prius (1,718) 1748 55%
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Lexus IS 250 3864
5 Lexus HS 250h (1,839) 2622 32%
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Toyota Camry SE Auto 3542
6 Toyota Camry Hybrid (2,148) 2622 26%
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Toyota Highlander
AWD V6 SUV 4968
7 Toyota Highlander
Hybrid SUV (2818) 3542 29%
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Ford Fusion SEL I4 3888
8 Ford Fusion Hybrid (4,482) 2352 38%
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Ford Escape XLT SUV 4416
9 Ford Escape Hybrid SUV (4,891) 2806 36%
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Nissan Altima 2.5S 3542
10 Nissan Altima Hybrid (8,862) 2668 25%
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Cadillac Escalade 6716
11 Cadillac Escalade Hybrid (9,755) 5336 21%
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Lexus RX 350 Premium SUV 5009
12 Lexus RX400h Hybrid SUV (11,538) 3390 32%
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Chevrolet Silverado/
Sierra Pickup 6210
13 Chevrolet Silverado/
Sierra Hybrid Pickup (15,688) 4370 30%
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GM Tahoe/Yukon SLT SUV 5980
14 GM Tahoe/Yukon Hybrid SUV (17,988) 4370 27%
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Lexus LS460 L 4968
15 Lexus LS600h L (20,463) 4554 8%
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Lexus GS 350 4600
16 Lexus GS 450h Hybrid (21,384) 3772 18%
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Notes and assumptions:
- Total 5-year cost includes initial purchase price, financing and fuel
costs at $1.17 per litre, less applicable tax rebates. Does not
include maintenance or insurance costs.
- Annual driving distance is 20,000 kilometres.
- Long-term depreciation and resale values remain unknown so are
assumed to be neutral.
- The Toyota Matrix/Prius comparison was used due to similar design and
specifications.
- MSRP and PDI information obtained from CanadianDriver.com or direct
from manufacturers.
- Financing rates assumed to be the same on both vehicles. Monthly
payment calculated using Loan Payment Calculator on Coast Capital
Savings website.
- Fuel consumption data from National Resources Canada - 2009 Fuel
Consumption Guide or direct from manufacturers.
- The full results of the Hybrid Cost Study, with all 36 vehicles and
more details, is available at: www.BCAA.com
For further information: or to request an interview, please contact: Niela Melanio, BCAA Public Affairs Advisor, Office: 604-268-5342 (M-F, 9 a.m. - 5 p.m.), Cell: 778-228-8859 (any time), Email: [email protected]; Trace Acres, BCAA Director, Corporate Communications & Government Affairs, Office: 604-268-5029, Cell: 604-788-3753, Email: [email protected]
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