Hybrid SUV Owners Knew It All Along

A recent study by Consumer Reports found that hybrid versions of popular SUVs, such as the Chevy Tahoe, Saturn Vue and Ford Escape can be more economical over the long haul than many standard fuel vehicles and even some smaller hybrids. The study looked at how long it takes a driver to start seeing a savings without factoring in tax credits. Since most hybrids prices do include a premium charge for the technology, the amount of time it takes for a driver to see real savings can really change the way a buyer looks at their purchase decision.

When looking at the potential savings, which ranged from $500 to $4,250 for the Tahoe, Vue and Escape, Consumer Reports took into consideration more than just fuel savings. With fuel costs adding up to around 25% of a car’s costs over the first few years, there are several other factors that come into play:

• depreciation
• insurance
• interest on financing
• maintenance and repairs
• sales tax

Fuel cost is an obvious place to look for savings. Since hybrids use a combination of electric and gas power, less gas is used, resulting in fewer trips to the pump.

Hybrid SUVs depreciate much slower than standard-fuel vehicles. Their trade-in and resale value is much higher because the technology is in top demand.

Insurance is less on hybrid SUVs. Some insurers offer discounts for hybrid drivers, such as Travelers. This is because research has shown that hybrid drivers are generally lower-risk drivers. An excerpt from carinsurance.com explains:

Travelers offers the discount to hybrid owners because their research has shown that hybrid drivers typically are lower risk drivers. Their statistics show that many hybrid buyers are married, between the ages of 41 and 60 and safer on the road then many drivers. They are mature, experienced drivers that are trying to save on gas costs and thus are not normally known to be “lead” foots or risky drivers.

Buyers are able to get better deals on financing a hybrid SUV because many lenders are trying to attract hybrid buyers for the same reasons the insurance companies are – they are less risky.

Maintenance and repairs are not needed as often on hybrid cars. Edmunds.com reminds us that. “All the hybrid-specific components in every hybrid vehicle currently on the market are covered under warranty for eight years/100,000 miles or 10 years/150,000 miles, depending on the state, but these components have been shown to have a much longer lifespan in testing.”

Sales tax is also less on hybrids. In some areas, hybrids are actually exempt from sales tax.

There you have it: six reasons buying a hybrid SUV can save you in the long run. What do current hybrid SUV drivers have to say about these? Do you see the savings from these six factors?