As seen on page 116 of the September 2008 issue (Vol. 37, No. 9) of Money magazine and here as a PDF.
Sip, Sip, Zoom
The math of car buying has done a 180. Now fuel economy is all. The good news: you don’t have to sacrifice style for miles.
Mike Allen; Additional Reporting By O.C. Ugwu; Andrew Nusca
MILLIONS OF AMERICAN DRIVERS ARE SUFFERING FROM pump shock, the symptoms of which include an unbearable lightness of wallet and a burning desire to stick the gas nozzle up somebody’s you-know-what. With gas averaging $3.93 a gallon, according to AAA, fueling an SUV can easily shred a $100 bill, and even a mid-size car swallows $70. There’s no relief in sight: The Department of Energy expects that the price of crude oil, which accounts for three-quarters of what you pay at the pump, will rise another 4% in 2009.
Desperate for an antidote, many drivers—including, perhaps, you—are circling dealer lots searching for something, anything, that will sip rather than guzzle. “Gas prices have changed the car buying landscape completely,” says Jessica Caldwell, an analyst for auto site Edmunds.com. “Interest in smaller vehicles is higher than ever, a reversal of recent years. Families are looking to downsize any way they can.”
Result: Hybrids are flying off lots. While new cars in general are taking an average of two months to sell, the low-mileage king, the Prius, has been selling out in five days, according to J.D. Power & Associates—this despite the fact that the tax credits on it have expired. With worldwide production of hybrid batteries maxed out, no one expects availability to improve anytime soon. And the demand is keeping hybrid prices at or above sticker, a sticker that averages $4,700 over a comparable regular car’s to begin with, reports J.D. Power. Pump shock is affecting conventional car sales too. “Anything over 30 miles per gallon is generally going for close to sticker,” says Art Spinella, president of auto data firm CNW Marketing Research.
So what’s a fuel-frustrated driver to do? Experts say your best value now—in terms of what you’ll pay for the car and the gas required to drive it—is not a hybrid but a conventional model with highway miles per gallon just shy of 30. Sure, you’ll spend a few hundred more in gas a year, but you pay no premium, can drive away for less than sticker and get a lot more style and pep than with a lawnmower-engine ecobox. Let’s be clear: If your main goal is to save the planet, you won’t buy a car like the Corvette on the previous spread or the Scion xB opposite. But if you’re looking to fill a more conventional need, those two—or any of the high-mileage, high-style suggestions on the next pages—will get you what you require while keeping you on the good side of Mother Earth and your accountant.
——————————
HYBRID VIGOR
5 days Average time a Prius sits on a dealer’s lot before being sold
16 days Average time any hybrid sits on a dealer’s lot
57 days Average time any new car sits on a dealer’s lot
NOTE: As of June 22. SOURCE: J.D. Power & Associates.
——————————
BUYING IN A MILEAGE-OBSESSED MARKET
Q. HOW DO I GET A DEAL ON A CONVENTIONAL CAR WITH DECENT FUEL ECONOMY?
A. First consult fueleconomy.gov to narrow your list of potential cars based on mileage; then check kbb.com to find the Kelley Blue Book “New Car Blue Book Value,” the price these autos are really selling for now. Stick with vehicles going for less than sticker, generally those in the 30-mpg-and-under range. Pick three and check them on Carsdirect.com, which allows you to select specific trim and options, then see an offer price from a local dealer. Next e-mail Internet managers at up to eight local dealers, telling them about that quote and asking if they can beat it. (These people usually cut to the chase fast.) Go for a second round with your new low. Ideally you’ll end up under Blue Book Value.
Q. WHAT ABOUT BUYING USED?
A. It depends. “Used compact cars in really good shape—like three-year-old Honda Civics—are commanding 70% to 90% of their original MSRP because demand is so high,” says Joe Phillippi, president of AutoTrends Consulting. Adds John Wolkonowicz, senior automotive analyst for Global Insight: “Buying a used Camry or Accord isn’t a great move—they hold value too well.” Your best deal: a car that isn’t in great demand but gets good reliability ratings from J.D. Power & Associates (jdpower.com), such as a 2005 Ford Focus (24 mpg city, 33 mpg highway) or Hyundai Elantra (25 mpg, 33 mpg). Both sell for less than 60% of the manufacturer’s suggested retail price (MSRP), which seems an underestimation of their real value, considering their J.D. Power ratings.
Q. FORGET ABOUT STYLE. I WANT THE MOST FUEL-EFFICIENT CONVENTIONAL CAR MONEY CAN BUY. WHICH ONE SHOULD I GO FOR?
A. Don’t mind running errands in a glorified golf cart? The Smart Fortwo coupe ($12,235) gets 41 mpg on the highway, 31 in the city. A roomier option: the Toyota Yaris ($13,110), which gets 36 mpg and 29 mpg.
Q. I REALLY WANT A HYBRID. ANY ADVICE?
A. Dealers have waiting lists for the two most popular, the Prius and the Civic Hybrid. So if you want one of these, start with the largest dealer in your area, as it gets the most inventory. Be flexible about trim, color and options; you’re in no position to be picky. Still, you’ll likely have to put your name on a waiting list; expect to pony up a refundable deposit of $1,000 or so. (As of now you’ll also pay about $1,000 above sticker on the Prius, according to Kelley Blue Book.)
If the delivery time is longer than you’d like, look beyond your area. “Hybrids are most popular in coastal states and Texas,” says Jack Nerad, an analyst at Kelley Blue Book and author of The Complete Idiot’s Guide to Hybrid and Alternative Fuel Vehicles. “Your best chance of finding one is in the Midwest.” (Of course, you’ll have to pay to get the car to you, which can add up to $1,000 to your bill.) You’ll have an easier time getting a hybrid with less cachet and fewer miles per gallon, such as the Chevy Malibu (24 mpg city, 32 highway) or the Nissan Altima hybrid (35 mpg, 33 mpg).
Q. I’VE SEEN GADGETS THAT PROMISE TO IMPROVE MY FUEL ECONOMY. DO THEY WORK?
A. The U.S. Environmental Protection Agency has tested hundreds of these gizmos. Some have you add liquids or pills to the tank; others have you add an underhood magnet or a vortex generator in the air-intake system. So far the EPA has found none that delivers significant savings; some can even damage your engine. The only devices that stand a chance of improving your miles per gallon are those that modify not the car but your driving habits. Consider a real-time fuel-economy reader—such as the Kiwi (plxkiwi.com, $299)—which installs easily on your dash and includes lessons to help you accelerate less aggressively and otherwise drive in a way that reduces your mileage.
Q. HELP! I WANT TO GET RID OF MY SUV.
A. With thousands of dollars in rebates lying on the hoods of new SUVs, it’s hard to get a good price selling a used one. “You could get 45% on a three-year-old Toyota Sequoia two years ago, but now it’s worth 30%,” says Spinella. Before you sell, check the Is It Worth Trading in Your Gas Guzzler? calculator at Edmunds.com. Depending on the answer, you may want to sit on your ute at least until fall, when four-wheel-drive vehicles will be in greater demand and pump shock may have ebbed.
If you must sell, do it on your own rather than trade it in. Dealers don’t need another SUV collecting dust on their lot. So if they agree to take yours, they’ll pay you well under market. More than half of used-car buyers shop online, reports J.D. Power, so post your ad on sites like AutoTrader.com or Cars.com. To sell fast, advertise it for a few hundred less than the lowest listing.
Q. BUT NOW IS A GOOD TIME TO BUY AN SUV OR A CROSSOVER, RIGHT?
A. Yep, if sticker price is your primary concern. You might knock as much as 15% off the MSRP, says Spinella. Plus, you have your choice of sweet financing (like 0% for 72 months on a Chevy Suburban) or hefty rebates (an average of $5,097, according to Edmunds.com, and as much as $7,000 on a Hummer H3). Figure out which is the better bet by using the Cash Back vs. Low Interest calculator at Cars.com.
Q. WHAT KIND OF FINANCING CAN I EXPECT TODAY?
A. “Going through the dealer is usually the best move these days,” says Spinella. “Banks have to make money on their loans, but dealers don’t really rely on financing for income.” If you’re shopping now, you’ll hit model year-end clearances, so you should be able to get a rate of 0% to 2.9% on something the manufacturer is trying to get rid of (read: SUVs). Aim for 4.9% or less on anything else, says Caldwell.
Q. WHAT ABOUT THE NEW DIESEL?
A. Popular in Europe, diesel is 20% to 40% more efficient than gas. And now a diesel car won’t make your garage smell like a truck stop: The fuel itself contains far less sulfur than it once did. Plus, diesel cars today have more efficient engines, and most 2009s will pass the same emissions standards as gas vehicles. The compliant 2009 Volkswagen Jetta—which gets 41 mpg on the high-way—went on sale in August; Audi, Honda and Mercedes-Benz will follow with models in the next few months. But experts predict that the U.S. will be slow to adopt these vehicles: Diesel is sometimes pricier than gas here, reducing or even negating potential savings. (In August 2007 diesel cost about the same as gas; recently it was $4.71 when gas was $3.93.) In the Northeast and Midwest, where houses are heated with oil similar to diesel, the cost goes up in winter. Also, you’ll pay a minimum $1,000 premium on these cars. To see if diesel would make sense for you, use the side-by-side comparison tool at fueleconomy.gov, entering in local gas and diesel prices.
Q. I’VE HEARD ABOUT A NEW KIND OF HYBRID…
A. You are probably talking about plug-in hybrid electric vehicles, or PHEVs. Like pure electric cars, these can be recharged via a wall socket. Unlike pure electric cars, PHEVs also have a gas engine that starts as needed to either move the car or recharge the battery, so you won’t be stuck as you are when your cell phone dies.
The fuel economics of PHEVs exceed those of the current crop of hybrids. They can run up to 40 miles on battery alone, and the cost per mile can be about a tenth that of a gas-powered car.
Toyota is hoping to have its Prius PHEV to market by 2010, and GM plans to sell its Volt PHEV by then too. The big question will be cost; the battery is quite expensive so far. “We’re talking thousands of dollars,” says Kelley Blue Book’s Nerad. “The payback period could be very lengthy.” The popularity of PHEVs will depend to a large degree on how big a tax credit the government offers.
——————————
STYLE FOR MILES
These six not-too-thirsty hybrid alternatives prove that fuel economy needn’t mean a compromise in style or value.
THE ROADSTER
Pontiac Solstice
SELLS FOR $21,614
FUEL ECONOMY (CITY/HIGHWAY) 19 MPG/25 MPG
ENGINE 173-HP 2.4-LITER DOHC I4
TRANSMISSION 5-SPEED MANUAL
SEATS TWO
The Solstice (and sister Saturn Sky) combines light weight, high responsiveness and decent fuel economy. And it’s one of the lowest-priced convertibles in North America.
THE SPEEDSTER
Chevrolet Corvette Convertible
SELLS FOR $51,545
FUEL ECONOMY 16 MPG/26 MPG
ENGINE 430-HP 6.2-LITER OHV V-8
TRANSMISSION 6-SPEED MANUAL
SEATS TWO
This isn’t the car you buy for its fuel economy; it’s the car you buy for its sophisticated chassis, V-8 engine and ability to hustle around corners. But drop it into sixth gear on the highway and you get bragging rights for mileage too.
THE SMART FAMILY CAR
Saturn Vue XE
SELLS FOR $21,707
FUEL ECONOMY 19 MPG/26 MPG
ENGINE 169-HP 2.4-LITER DOHC I4
TRANSMISSION 4-SPEED AUTOMATIC
SEATS FIVE
If you must buy an SUV, this one won’t put you in hock to the Saudis. It gets decent mileage by any standard, but it’s especially good for an SUV. At $4,000 less than its hybrid twin, it’s a great value.
THE COOL CARRYALL
Scion xB
SELLS FOR $17,220
FUEL ECONOMY 22 MPG/28 MPG
ENGINE 158-HP 2.4-LITER DOHC I4
TRANSMISSION 5-SPEED AUTOMATIC
SEATS FIVE
This ugly-chic crossover likely has the highest ratio of interior volume to curb length of any vehicle. It’ll welcome five adults and a good amount of luggage, and it needs to stop for gas only every 400 miles.
THE STURDY SECOND CAR
VW Rabbit Coupe
SELLS FOR $17,325
FUEL ECONOMY 22 MPG/29 MPG
ENGINE 170-HP 2.5-LITER DOHC I5
TRANSMISSION 5-SPEED MANUAL
SEATS FIVE
The Rabbit, which was called the Golf for a while, has been rechristened as its ’70s self. It’s proof that compact can be comfortable—five passengers fit fine—yet it gets the mileage you’d hope for from a car half as much fun to drive.
THE URBAN HIPSTER
Vespa LX
SELLS FOR $3,199
FUEL ECONOMY 70 MPG TO 80 MPG
ENGINE 50CC SOHC 1-CYL
TRANSMISSION AUTOMATIC
SEATS TWO
It’ll go only 39 mph, but why hurry when you’re getting 80 miles per gallon? This Italian import is perfect for squeezing through city traffic—though not advised on the highway—and it’s a breeze to park. Consider it the ultimate commuter solution.
——————————
HOW FAST DOES A HYBRID PAY OFF?
So you’re thinking about bypassing a standard Camry in favor of a hybrid Prius (if you can find the darn thing). Wondering how long it’ll take before your savings at the pump compensate for the higher price? The answer depends on where gas prices go; see below. At today’s $3.93 a gallon, it’d take almost five years to recoup the $4,913 difference and start saving money. (By the way, that Prius has an MSRP of $23,535, but good luck getting it; we’ve noted what it’s actually selling for.) Now, if you got a hybrid on which there are still tax credits, the payback could be a few months shorter. Still, you’re paying a lot up front for delayed gratification, especially considering that a 2008 Camry and Prius are expected to retain virtually the same percentage of value on resale by 2013—39% and 38%, respectively—according to Kelley Blue Book.
Make your best guess as to where gas prices will go, then check the number right below it for how long before you break even. This assumes 15,000 miles of driving a year, mostly around town.
——————————
[This article contains a table. Please see hardcopy of magazine or PDF.]
SELLS FOR…
FUEL ECONOMY (CITY/HIGHWAY)
GAS CONSUMED IN A YEAR
ANNUAL GAS COST AT TODAY’S PRICES
TOYOTA PRIUS
$24,548
48 MPG/45 MPG
326 GALLONS
$1,281
TOYOTA CAMRY
$19,635
21 MPG/31 MPG
600 GALLONS
$2,358
IF GAS COSTS THIS MUCH PER GALLON…
$2
$3
$4
$5
$6
$7
$8
IT’LL TAKE THIS MANY YEARS TO BREAK EVEN.
9.0
6.0
4.5
3.6
3.0
2.6
1.7
NOTES: Based on 45% highway, 55% city driving; 15,000 annual miles. Models are 2008 Toyota Prius four-door hatchback and 2008 Toyota Camry four-door sedan with automatic transmission. Prices are transactional figures from Kelley Blue Book Kelley New Car Blue Book Value. SOURCES: Kelley Blue Book, Fueleconomy.gov, MONEY calculations.
Sip, Sip, Zoom
As seen on page 116 of the September 2008 issue (Vol. 37, No. 9) of Money magazine and here as a PDF.
Sip, Sip, Zoom
The math of car buying has done a 180. Now fuel economy is all. The good news: you don’t have to sacrifice style for miles.
Mike Allen; Additional Reporting By O.C. Ugwu; Andrew Nusca
MILLIONS OF AMERICAN DRIVERS ARE SUFFERING FROM pump shock, the symptoms of which include an unbearable lightness of wallet and a burning desire to stick the gas nozzle up somebody’s you-know-what. With gas averaging $3.93 a gallon, according to AAA, fueling an SUV can easily shred a $100 bill, and even a mid-size car swallows $70. There’s no relief in sight: The Department of Energy expects that the price of crude oil, which accounts for three-quarters of what you pay at the pump, will rise another 4% in 2009.
Desperate for an antidote, many drivers—including, perhaps, you—are circling dealer lots searching for something, anything, that will sip rather than guzzle. “Gas prices have changed the car buying landscape completely,” says Jessica Caldwell, an analyst for auto site Edmunds.com. “Interest in smaller vehicles is higher than ever, a reversal of recent years. Families are looking to downsize any way they can.”
Result: Hybrids are flying off lots. While new cars in general are taking an average of two months to sell, the low-mileage king, the Prius, has been selling out in five days, according to J.D. Power & Associates—this despite the fact that the tax credits on it have expired. With worldwide production of hybrid batteries maxed out, no one expects availability to improve anytime soon. And the demand is keeping hybrid prices at or above sticker, a sticker that averages $4,700 over a comparable regular car’s to begin with, reports J.D. Power. Pump shock is affecting conventional car sales too. “Anything over 30 miles per gallon is generally going for close to sticker,” says Art Spinella, president of auto data firm CNW Marketing Research.
So what’s a fuel-frustrated driver to do? Experts say your best value now—in terms of what you’ll pay for the car and the gas required to drive it—is not a hybrid but a conventional model with highway miles per gallon just shy of 30. Sure, you’ll spend a few hundred more in gas a year, but you pay no premium, can drive away for less than sticker and get a lot more style and pep than with a lawnmower-engine ecobox. Let’s be clear: If your main goal is to save the planet, you won’t buy a car like the Corvette on the previous spread or the Scion xB opposite. But if you’re looking to fill a more conventional need, those two—or any of the high-mileage, high-style suggestions on the next pages—will get you what you require while keeping you on the good side of Mother Earth and your accountant.
——————————
HYBRID VIGOR
5 days Average time a Prius sits on a dealer’s lot before being sold
16 days Average time any hybrid sits on a dealer’s lot
57 days Average time any new car sits on a dealer’s lot
NOTE: As of June 22. SOURCE: J.D. Power & Associates.
——————————
BUYING IN A MILEAGE-OBSESSED MARKET
Q. HOW DO I GET A DEAL ON A CONVENTIONAL CAR WITH DECENT FUEL ECONOMY?
A. First consult fueleconomy.gov to narrow your list of potential cars based on mileage; then check kbb.com to find the Kelley Blue Book “New Car Blue Book Value,” the price these autos are really selling for now. Stick with vehicles going for less than sticker, generally those in the 30-mpg-and-under range. Pick three and check them on Carsdirect.com, which allows you to select specific trim and options, then see an offer price from a local dealer. Next e-mail Internet managers at up to eight local dealers, telling them about that quote and asking if they can beat it. (These people usually cut to the chase fast.) Go for a second round with your new low. Ideally you’ll end up under Blue Book Value.
Q. WHAT ABOUT BUYING USED?
A. It depends. “Used compact cars in really good shape—like three-year-old Honda Civics—are commanding 70% to 90% of their original MSRP because demand is so high,” says Joe Phillippi, president of AutoTrends Consulting. Adds John Wolkonowicz, senior automotive analyst for Global Insight: “Buying a used Camry or Accord isn’t a great move—they hold value too well.” Your best deal: a car that isn’t in great demand but gets good reliability ratings from J.D. Power & Associates (jdpower.com), such as a 2005 Ford Focus (24 mpg city, 33 mpg highway) or Hyundai Elantra (25 mpg, 33 mpg). Both sell for less than 60% of the manufacturer’s suggested retail price (MSRP), which seems an underestimation of their real value, considering their J.D. Power ratings.
Q. FORGET ABOUT STYLE. I WANT THE MOST FUEL-EFFICIENT CONVENTIONAL CAR MONEY CAN BUY. WHICH ONE SHOULD I GO FOR?
A. Don’t mind running errands in a glorified golf cart? The Smart Fortwo coupe ($12,235) gets 41 mpg on the highway, 31 in the city. A roomier option: the Toyota Yaris ($13,110), which gets 36 mpg and 29 mpg.
Q. I REALLY WANT A HYBRID. ANY ADVICE?
A. Dealers have waiting lists for the two most popular, the Prius and the Civic Hybrid. So if you want one of these, start with the largest dealer in your area, as it gets the most inventory. Be flexible about trim, color and options; you’re in no position to be picky. Still, you’ll likely have to put your name on a waiting list; expect to pony up a refundable deposit of $1,000 or so. (As of now you’ll also pay about $1,000 above sticker on the Prius, according to Kelley Blue Book.)
If the delivery time is longer than you’d like, look beyond your area. “Hybrids are most popular in coastal states and Texas,” says Jack Nerad, an analyst at Kelley Blue Book and author of The Complete Idiot’s Guide to Hybrid and Alternative Fuel Vehicles. “Your best chance of finding one is in the Midwest.” (Of course, you’ll have to pay to get the car to you, which can add up to $1,000 to your bill.) You’ll have an easier time getting a hybrid with less cachet and fewer miles per gallon, such as the Chevy Malibu (24 mpg city, 32 highway) or the Nissan Altima hybrid (35 mpg, 33 mpg).
Q. I’VE SEEN GADGETS THAT PROMISE TO IMPROVE MY FUEL ECONOMY. DO THEY WORK?
A. The U.S. Environmental Protection Agency has tested hundreds of these gizmos. Some have you add liquids or pills to the tank; others have you add an underhood magnet or a vortex generator in the air-intake system. So far the EPA has found none that delivers significant savings; some can even damage your engine. The only devices that stand a chance of improving your miles per gallon are those that modify not the car but your driving habits. Consider a real-time fuel-economy reader—such as the Kiwi (plxkiwi.com, $299)—which installs easily on your dash and includes lessons to help you accelerate less aggressively and otherwise drive in a way that reduces your mileage.
Q. HELP! I WANT TO GET RID OF MY SUV.
A. With thousands of dollars in rebates lying on the hoods of new SUVs, it’s hard to get a good price selling a used one. “You could get 45% on a three-year-old Toyota Sequoia two years ago, but now it’s worth 30%,” says Spinella. Before you sell, check the Is It Worth Trading in Your Gas Guzzler? calculator at Edmunds.com. Depending on the answer, you may want to sit on your ute at least until fall, when four-wheel-drive vehicles will be in greater demand and pump shock may have ebbed.
If you must sell, do it on your own rather than trade it in. Dealers don’t need another SUV collecting dust on their lot. So if they agree to take yours, they’ll pay you well under market. More than half of used-car buyers shop online, reports J.D. Power, so post your ad on sites like AutoTrader.com or Cars.com. To sell fast, advertise it for a few hundred less than the lowest listing.
Q. BUT NOW IS A GOOD TIME TO BUY AN SUV OR A CROSSOVER, RIGHT?
A. Yep, if sticker price is your primary concern. You might knock as much as 15% off the MSRP, says Spinella. Plus, you have your choice of sweet financing (like 0% for 72 months on a Chevy Suburban) or hefty rebates (an average of $5,097, according to Edmunds.com, and as much as $7,000 on a Hummer H3). Figure out which is the better bet by using the Cash Back vs. Low Interest calculator at Cars.com.
Q. WHAT KIND OF FINANCING CAN I EXPECT TODAY?
A. “Going through the dealer is usually the best move these days,” says Spinella. “Banks have to make money on their loans, but dealers don’t really rely on financing for income.” If you’re shopping now, you’ll hit model year-end clearances, so you should be able to get a rate of 0% to 2.9% on something the manufacturer is trying to get rid of (read: SUVs). Aim for 4.9% or less on anything else, says Caldwell.
Q. WHAT ABOUT THE NEW DIESEL?
A. Popular in Europe, diesel is 20% to 40% more efficient than gas. And now a diesel car won’t make your garage smell like a truck stop: The fuel itself contains far less sulfur than it once did. Plus, diesel cars today have more efficient engines, and most 2009s will pass the same emissions standards as gas vehicles. The compliant 2009 Volkswagen Jetta—which gets 41 mpg on the high-way—went on sale in August; Audi, Honda and Mercedes-Benz will follow with models in the next few months. But experts predict that the U.S. will be slow to adopt these vehicles: Diesel is sometimes pricier than gas here, reducing or even negating potential savings. (In August 2007 diesel cost about the same as gas; recently it was $4.71 when gas was $3.93.) In the Northeast and Midwest, where houses are heated with oil similar to diesel, the cost goes up in winter. Also, you’ll pay a minimum $1,000 premium on these cars. To see if diesel would make sense for you, use the side-by-side comparison tool at fueleconomy.gov, entering in local gas and diesel prices.
Q. I’VE HEARD ABOUT A NEW KIND OF HYBRID…
A. You are probably talking about plug-in hybrid electric vehicles, or PHEVs. Like pure electric cars, these can be recharged via a wall socket. Unlike pure electric cars, PHEVs also have a gas engine that starts as needed to either move the car or recharge the battery, so you won’t be stuck as you are when your cell phone dies.
The fuel economics of PHEVs exceed those of the current crop of hybrids. They can run up to 40 miles on battery alone, and the cost per mile can be about a tenth that of a gas-powered car.
Toyota is hoping to have its Prius PHEV to market by 2010, and GM plans to sell its Volt PHEV by then too. The big question will be cost; the battery is quite expensive so far. “We’re talking thousands of dollars,” says Kelley Blue Book’s Nerad. “The payback period could be very lengthy.” The popularity of PHEVs will depend to a large degree on how big a tax credit the government offers.
——————————
STYLE FOR MILES
These six not-too-thirsty hybrid alternatives prove that fuel economy needn’t mean a compromise in style or value.
THE ROADSTER
Pontiac Solstice
SELLS FOR $21,614
FUEL ECONOMY (CITY/HIGHWAY) 19 MPG/25 MPG
ENGINE 173-HP 2.4-LITER DOHC I4
TRANSMISSION 5-SPEED MANUAL
SEATS TWO
The Solstice (and sister Saturn Sky) combines light weight, high responsiveness and decent fuel economy. And it’s one of the lowest-priced convertibles in North America.
THE SPEEDSTER
Chevrolet Corvette Convertible
SELLS FOR $51,545
FUEL ECONOMY 16 MPG/26 MPG
ENGINE 430-HP 6.2-LITER OHV V-8
TRANSMISSION 6-SPEED MANUAL
SEATS TWO
This isn’t the car you buy for its fuel economy; it’s the car you buy for its sophisticated chassis, V-8 engine and ability to hustle around corners. But drop it into sixth gear on the highway and you get bragging rights for mileage too.
THE SMART FAMILY CAR
Saturn Vue XE
SELLS FOR $21,707
FUEL ECONOMY 19 MPG/26 MPG
ENGINE 169-HP 2.4-LITER DOHC I4
TRANSMISSION 4-SPEED AUTOMATIC
SEATS FIVE
If you must buy an SUV, this one won’t put you in hock to the Saudis. It gets decent mileage by any standard, but it’s especially good for an SUV. At $4,000 less than its hybrid twin, it’s a great value.
THE COOL CARRYALL
Scion xB
SELLS FOR $17,220
FUEL ECONOMY 22 MPG/28 MPG
ENGINE 158-HP 2.4-LITER DOHC I4
TRANSMISSION 5-SPEED AUTOMATIC
SEATS FIVE
This ugly-chic crossover likely has the highest ratio of interior volume to curb length of any vehicle. It’ll welcome five adults and a good amount of luggage, and it needs to stop for gas only every 400 miles.
THE STURDY SECOND CAR
VW Rabbit Coupe
SELLS FOR $17,325
FUEL ECONOMY 22 MPG/29 MPG
ENGINE 170-HP 2.5-LITER DOHC I5
TRANSMISSION 5-SPEED MANUAL
SEATS FIVE
The Rabbit, which was called the Golf for a while, has been rechristened as its ’70s self. It’s proof that compact can be comfortable—five passengers fit fine—yet it gets the mileage you’d hope for from a car half as much fun to drive.
THE URBAN HIPSTER
Vespa LX
SELLS FOR $3,199
FUEL ECONOMY 70 MPG TO 80 MPG
ENGINE 50CC SOHC 1-CYL
TRANSMISSION AUTOMATIC
SEATS TWO
It’ll go only 39 mph, but why hurry when you’re getting 80 miles per gallon? This Italian import is perfect for squeezing through city traffic—though not advised on the highway—and it’s a breeze to park. Consider it the ultimate commuter solution.
——————————
HOW FAST DOES A HYBRID PAY OFF?
So you’re thinking about bypassing a standard Camry in favor of a hybrid Prius (if you can find the darn thing). Wondering how long it’ll take before your savings at the pump compensate for the higher price? The answer depends on where gas prices go; see below. At today’s $3.93 a gallon, it’d take almost five years to recoup the $4,913 difference and start saving money. (By the way, that Prius has an MSRP of $23,535, but good luck getting it; we’ve noted what it’s actually selling for.) Now, if you got a hybrid on which there are still tax credits, the payback could be a few months shorter. Still, you’re paying a lot up front for delayed gratification, especially considering that a 2008 Camry and Prius are expected to retain virtually the same percentage of value on resale by 2013—39% and 38%, respectively—according to Kelley Blue Book.
Make your best guess as to where gas prices will go, then check the number right below it for how long before you break even. This assumes 15,000 miles of driving a year, mostly around town.
——————————
[This article contains a table. Please see hardcopy of magazine or PDF.]
SELLS FOR…
FUEL ECONOMY (CITY/HIGHWAY)
GAS CONSUMED IN A YEAR
ANNUAL GAS COST AT TODAY’S PRICES
TOYOTA PRIUS
$24,548
48 MPG/45 MPG
326 GALLONS
$1,281
TOYOTA CAMRY
$19,635
21 MPG/31 MPG
600 GALLONS
$2,358
IF GAS COSTS THIS MUCH PER GALLON…
$2
$3
$4
$5
$6
$7
$8
IT’LL TAKE THIS MANY YEARS TO BREAK EVEN.
9.0
6.0
4.5
3.6
3.0
2.6
1.7
NOTES: Based on 45% highway, 55% city driving; 15,000 annual miles. Models are 2008 Toyota Prius four-door hatchback and 2008 Toyota Camry four-door sedan with automatic transmission. Prices are transactional figures from Kelley Blue Book Kelley New Car Blue Book Value. SOURCES: Kelley Blue Book, Fueleconomy.gov, MONEY calculations.