Hybrid Vehicles Not Best Value According to Edmunds.com

SANTA MONICA, Calif.--(BUSINESS WIRE)--High gas prices, the housing crisis and general economic uncertainty are motivating consumers to look for the least expensive cars to own and operate. A new study by Edmunds.com, the premier online resource for automotive information, indicates that many compact and subcompact vehicles are actually better choices than hybrids for consumers looking to save money. The data also suggests that only one hybrid, the Honda Civic Hybrid, would break into the top ten least expensive vehicles if gas prices were to increase to $5 per gallon. The results are based on Edmunds.com’s True Cost to Own^SM data, which accounts for total vehicle costs over a five-year period.

“Shoppers should look beyond fuel economy and consider the big picture when determining how a vehicle purchase will fit into their household budget.”

Unlike some other analyses that look only at fuel economy and sticker price, including one released by Consumer Reports last week, the True Cost to Own^SM study incorporates projected model-specific average vehicle ownership costs, consisting of depreciation, financing, taxes, fees, insurance premiums, fuel costs, maintenance and repairs. When all of the factors are considered, some popular vehicles look considerably less appealing on a cost-per-mile basis than their fuel economy would suggest.

“When consumers think about cars that will save them money, hybrids are typically top of mind because of their fuel efficiency,” said Jesse Toprak, Edmunds.com Executive Director of Industry Analysis. “But when you take a look at the real-world costs of car ownership, you realize that many subcompact and compact cars are actually a much better value proposition.”

The study evaluated the True Cost to Own^SM of vehicles assuming gas prices of $4.06 (the national average on June 23), $5 and $6. With gas prices at $4.06 per gallon, the standard model Toyota Prius costs owners $0.50 per mile -- ranking 33^rd among all vehicles. The top-seeded Chevrolet Aveo, on the other hand, costs $0.42 per mile, resulting in annual savings of $1,200 to consumers who choose the Aveo over a Prius. In the event gas prices rise to $5 or $6 per gallon, the Aveo remains in the top spot and the Prius moves to positions 25 and 17 respectively.

The following are the 10 least expensive vehicles to own (all 2008 models):

Cost-Per-Mile: Least Expensive Vehicles to Own
Make	Model	Style	Cost-Per-Mile at $4.06 Per Gallon	Rank	Cost-Per-Mile at $5 Per Gallon	Rank	Cost-Per-Mile at $6 Per Gallon	Rank
Chevrolet	Aveo	5 Special Value 4dr Hatchback (1.6L 4cyl 5M)	$0.427	1	$0.461	1	$0.496	1

Hyundai	Accent	GS 2dr Hatchback (1.6L 4cyl 5M)	$0.430	2	$0.463	2	$0.498	2

Honda	Fit	4dr Hatchback (1.5L 4cyl 5M)	$0.442	3	$0.474	3	$0.507	4

Toyota	Yaris	2dr Hatchback (1.5L 4cyl 5M)	$0.445	4	$0.475	4	$0.507	3

Honda	Civic	DX 4dr Sedan (1.8L 4cyl 5M)	$0.455	5	$0.488	5	$0.522	5

Nissan	Versa	1.8 S 4dr Hatchback (1.8L 4cyl 6M)	$0.458	6	$0.492	6	$0.529	7

Mazda	MAZDA3	i Sport 4dr Sedan (2.0L 4cyl 5M)	$0.463	7	$0.498	8	$0.535	11

Kia	Rio	4dr Sedan (1.6L 4cyl 5M)	$0.464	8	$0.497	7	$0.533	9

Scion	xB	4dr Wagon (2.4L 4cyl 5M)	$0.467	9	$0.506	12	$0.548	17

Toyota	Corolla	CE 4dr Sedan (1.8L 4cyl 5M)	$0.468	10	$0.498	9	$0.530	8

The following are the 10 least expensive hybrid vehicles to own (all 2008 models):

Cost-Per-Mile: Hybrids¹
Make	Model	Style	Cost-Per-Mile at $4.06 Per Gallon	Rank	Cost-Per-Mile at $5 Per Gallon	Rank	Cost-Per-Mile at $6 Per Gallon	Rank
Honda	Civic Hybrid	Hybrid 4dr Sedan (1.3L 4cyl gas/electric hybrid CVT)	$0.476	14	$0.499	10	$0.524	6

Toyota	Prius	Standard 4dr Hatchback (1.5L 4cyl gas/electric hybrid CVT)	$0.503	34	$0.525	26	$0.548	18

Nissan	Altima Hybrid	4dr Sedan (2.5L 4cyl gas/electric hybrid CVT)	$0.540	66	$0.569	59	$0.601	54

Chevrolet	Malibu	Hybrid 4dr Sedan (2.4L 4cyl gas/electric hybrid 4A)	$0.563	81	$0.598	78	$0.635	76

Ford	Escape Hybrid	4dr SUV (2.3L 4cyl gas/electric hybrid CVT)	$0.583	94	$0.615	86	$0.649	80

Mercury	Mariner Hybrid	4dr SUV (2.3L 4cyl gas/electric hybrid CVT)	$0.596	102	$0.628	98	$0.662	89

Toyota	Camry Hybrid	Hybrid 4dr Sedan (2.4L 4cyl gas/electric hybrid CVT)	$0.630	134	$0.660	118	$0.691	106

Mercury	Mariner Hybrid	4dr SUV AWD (2.3L 4cyl gas/electric hybrid CVT)	$0.634	136	$0.670	133	$0.709	122

Toyota	Highlander Hybrid	4dr SUV AWD (3.3L 6cyl gas/electric hybrid CVT)	$0.725	190	$0.764	190	$0.806	182

Lexus	RX 400h	4dr SUV (3.3L 6cyl gas/electric hybrid CVT)	$0.897	260	$0.937	260	$0.980	256

¹ The Edmunds.com study takes into account the federal tax credits when applicable.

"Many consumers neglect to consider total ownership costs when deciding which vehicle to buy," said Philip Reed, Senior Consumer Advice Editor for Edmunds.com. "Shoppers should look beyond fuel economy and consider the big picture when determining how a vehicle purchase will fit into their household budget.”

Edmunds.com’s True Cost to Own^SM calculations make the following assumptions:

Ownership expenses are for a five-year time span
Vehicles are driven 15,000 miles per year
Vehicles are financed using traditional financing and not leased
Buyers pay 10 percent down on the vehicle
Buyers are in the "Gold" credit tier for the purpose of determining the finance rate
The loan term is 60 months
Buyers represent the average demographic in their state for insurance rates

Edmunds.com True Cost to Own^SM is available at no charge to Web site visitors, and provides ownership costs regionally for both new and used vehicles. The True Cost to Own^SM tool is available at http://www.edmunds.com/apps/cto/CTOintroController.

About Edmunds Inc. (http://www.edmunds.com/help/about/)

Edmunds Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value^®, is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study^SM, was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Inside Line launched in 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in 2006 and is an automotive social networking Web site and home to the oldest and most established automotive community. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. Edmunds Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.