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The New Hybrids

What’s next for hybrid vehicles?

extended warrantyLately hybrids have been a hot topic in the auto world.  Spurred on by the price of gas, many auto makers have begun to focus aggressively on producing and marketing them.  However, discerning consumers may have seen that in some cases the purchase of a hybrid will not save them much or any money at all.  

It is true that you will save money because of the increased fuel efficiency but a hybrid car will cost around $3,000 more than its standard gas powered equivalent.  So, your driving habits will determine how much money you will save in the long run.  Most of the time it will end up being a wash.  

Up to this point, most hybrid owners purchased their vehicles because of environmental and social reasons.  If the hybrid is to make it big, it’s going to need to become cheaper.

However, for hybrids to take a major slice of the mass market, it will require the ‘hybrid price premium’ to be slashed from it’s current $3,000+ level to less than $1,000. Toyota, for one, is focusing on achieving this as soon as practicable.


Better technology and more efficient manufacturing techniques will be needed to bring the hybrid price down.  However, there is another option.  Flex fuel hybrids may help consumers get the most bang for their buck.

What makes real sense is the upgrading of current hybrid offerings to become ‘flexible fuel hybrids’, and full support from manufacturers that all new hybrid models will run on any mix of gasoline and E85. Less than $200 is added to the production cost of a conventional gasoline vehicle in upgrading it to handle E85. Congress, realizing that we are confronted by Global Warming, Peak Oil, and Energy Insecurity, has put the necessary ethanol pump-priming into the new Energy Policy Act.


Saving the environment is a very noble and worthy reason to own a hybrid but most car buyers are looking for one thing:  A cheap fuel efficient car.  Hopefully, that option is on the way.

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Posted on Tuesday, May 9th, 2006 at 6:30 am In Auto Warranty  


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