Hybrid cars only suitable for Sales person?

In Car on 4 September, 2006 at 3:00 pm

Recently, I went to check out the latest Honda Civic Hybrid.  During the test drive, the sale executive told me that hybrid cars are actually more for people who travels a lot; People like insurance agent, sales executive and so on.  According to him, 80km per day is not consider a lot, thus a hybrid car is not suitable.  I beg to differ.

Let’s do some calculation.  If you travels a lot, like say 80km per day, your annual distance would be 30,000km.  You are now driving a normal car which can give you 12km/liters.  Using the lowest grade of petrol that can be found easily in Singapore (which is Octane 95 and cost currently $1.632/liters, your annual petrol cost would be $4,080.  Compare that to a Civic hybrid having 22km/liters and thus gives you an annual petrol cost of $2,225.  Thus, petrol saving per year would be $1,855.  For the calculation of car cost, let’s assume that the normal car is a Honda Civic 1.6 which cost $72,000 (having the same fuel consumption as 12km/liters) and the Civic hybrid cost $79,500.  A difference of $7,500 which means that to break even, you need to drive the Civic hybrid for about 4 years (provided that petrol remains as high, which is very likely).

This shows that if you travels quite frequently, clock an annual mileage of 30,000km and you intend to drive the car for 10 years, go for the Civic hybrid.  The hybrid car will save you $11,130 after the initial 4 years.


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