Are you rushing 70mph to buy yourself a gas-saving hybrid? (Don’t drive that fast… driving fast uses more fuel!). Here are a few reasons why buying a “greener” car may cost you more green — for now.
Why Green Cars Are Not Always Saving Machines
by Lauren Tara LaCapra
Rushing to trade in your current car for a smaller, more fuel-efficient model will likely cost more money — not save it — according to an analysis by Consumer Reports.
What you’ll spend on less-tangible costs like depreciation and interest will outweigh savings at the pump in most cases, even with gas prices approaching $4 a gallon, the publication, which is owned by the nonprofit Consumer Union, said.
If you’ve owned your current car for three years or less and haven’t paid off the loan, it isn’t worth downsizing, according to Consumer Reports’ calculations. That’s because the greatest depreciation occurs during the first three years, making the car less expensive to own after that point. Depreciation — or the declining value of the car — makes up about 48% of vehicle costs during the first five years of ownership, on average, compared with 21% for fuel.
Continuing reading about the pros and cons of hybrid cars at MainStreet.com
