More hybrids are on the market, but most still cost more than gas equivalents

Only four of the 23 hybrid vehicles currently on the Canadian market would produce cost savings when compared to their closest gas-only counterparts, even as the price of gas continues to climb.

These findings from the British Columbia Automobile Association’s (BCAA) annual Hybrid Vehicle Cost and Savings Analysis found that while the use of hybrid vehicles may save thousands of tonnes of CO2, dollars and cents aren’t being saved quite as much.

However, for hybrid owners who drive more than average (40,000 kilometers per year as opposed to the average of 20,000), 13 of the 23 vehicles became less expensive to own and operate over a five-year timeline. The $2,000 provincial sales tax rebate was eliminated with the introduction of the HST, but if it was to be reintroduced, BCAA found that 10 of the 23 hybrids became more affordable than their conventionally-fueled equivalent.

“Hybrids can make a significant difference to the environment,” said BCAA President and CEO Tim Condon, noting that hybrids produce up to 48% fewer greenhouse gas emissions than their gas-only equivalents. “But potential purchasers should choose carefully to make sure the hybrid they choose meets their needs and objectives. All hybrids offer better fuel economy, but there is still a price premium to be paid for most models. The good news is there are more hybrids to select from than ever before.”

Highlights of BCAA’s 2011 Hybrid Vehicle Cost and Savings Analysis:

• The four vehicles that beat their closest gas-only equivalents in five-year purchase, financing and fuel costs are: Lexus CT200h, Mercedes S400, Lincoln MKZ and Infiniti M35h.
• The lowest cost hybrid is the new Honda CR-Z (purchase, financing and five-year fuel costs = $39,173). The most expensive hybrid is the Lexus LS 600h (purchase, financing and five-year fuel costs = $176,167).
• The hybrid vehicle that offers the greatest savings over its closest conventional counterpart is the new Lexus CT 200h which, over five years, is $3,378 less expensive to own and operate than the Toyota Venza I4.
• The hybrids with the greatest greenhouse gas (GHG) emission advantage over their gas-only equivalents are:
  • Toyota Prius (48% fewer GHG emissions)
  • Lincoln MKZ (48% fewer GHG emissions)
  • Lexus CT200h (46% fewer GHG emissions)
  • Honda CR-Z (44% fewer GHG emissions)

The 2011 BCAA analysis of 23 vehicle pairings is based on a fuel price of $1.35 per litre and an annual driving distance of 20,000 kms (50/50 highway/city). The base analysis was altered to test the impact of higher fuel prices, greater distances driven and the re-introduction of a provincial sales tax incentive. The results are:

The full report of all 23 hybrid vehicles currently available in Canada can be found here. (PDF)

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