Cost and Benefits of Hybrid Cars Essay

consecrate you pulled your automobile up to the blow pump lately and been shocked by the high prices of gasoline? The Auto industry has the technology requirement to solicit this concern. . Its the hybridization railroad car. Today, there be many different models extinct there in the market and most major manufacturers be touch on in developing them. Hybrid cars will carry out the drivers a kitty of silver. The purpose of this paper is to identify the make ups and show the benefits of this awesome vehicle. Identifying Costs.This plane section is designed to comp atomic number 18 and contrast all the bes that we will delay in the decision of buy a stark naked hybrid car. Itll hold all m unitarytary costs and all non- financial costs. I will be comparing the costs of acquire a new hybrid to separate regular non-hybrid vehicles in order to better see the differences. A. Gasoline & railroad car Loan People are obsessed with spending less money on gas. Websites hav e even been created to help the penny-pinching consumer find the cheapest plectrum close to home. Hybrid cars get really good MPG (miles per gallon).In my opinion, the better(p) way to find out if switching over to a new hybrid car is a good idea is to compare the prices and costs. Ill drop my own car as an example, if I were to replace my gainful-off 1999 Honda Accord, which just gets 25 mpg, with something frequently economical I would consider a Toyota Prius or a Corolla. The following chart shows how more money I would save if I made the change. 2012 Auto Miles per Gallon (MPG)Monthly Gas strong-armer Price Monthly Payment Net Monthly parsimonys Savings Toyota Prius 55 $ 70. 71 $21,275.00 $386. 56 $(315. 85) Toyota Corolla 36 $ 34. 72 $14,005. 00 $227. 83 $(193. 10) The put over higher up, shows us how much to a capaciouser extent it is to save if purchasing a Prius over a Corolla (Hensley 2011). On the separate hand we can see that the poser price of a T oyota Prius is more expensive than the Corolla. The calendar monthly payment above is calculated at a 5. 5% APR. However in the massive run we will be saving so much more if we chose the Prius, because the money that we are saving on gas every month could be used to pay off the difference in the sticker Price.With gas prices skyrocketing again like they did in 2008, this will be the take up decision to make. The following chart will give us more insight on gas prices (Hensley 2011). pic B. Taxes Even though the final sell price is including assesses, there are many things to none virtually tax credits per hybrid car. There is no set tax credit, and it depends on what vehicle you buy, so remember not to only take into sum up the miles per gallon and price, but also the varying tax break incentives.The hear of IRS-certified vehicles is not always the same automakers keep producing hybrids that are qualified and adding them to the list, we postulate to make sure we look at th e updated data. Also, another thing about hybrid tax credit is that they are reduced every division and eventually is eliminated, so make sure to check out the degree out dates that are determined by different manufacturers. Credit amounts stick to phase out for a given manufacturer once it has change over 60,000 eligible vehicles.It is all depending on the year, for example if we go plunk for to 2005, you can save anywhere from $500 all the way up to about $3,400 ( burn Economy. gov). Sometimes, it can be a guessing game, but remember, we will be saving something and it adds up Vehicles purchased after December 31, 2010 are not eligible for this credit (Fuel Economy. gov). C. Registration Fees and Other Monetary Costs The modification fee is the amount charged by the state to register a new car, assign a title (legal proof of ownership) and cover the cost of license plates.The dealer provides this service for you saving you a trip to the DMV or registry but the money goes to the state. There are other fees that read to be paid when buying a new car such(prenominal) as doc fees, taxing the trade-in, taxing rebates and dealer fees. However when buying a Prius those fees will be the same as buying a regular car so further explanation is not necessary (Karim, Layton). D. Non-monetary costs The time it takes to go buy a car would be one non-monetary cost. Lets say I was going to go buy today. Since I extend 40-hours a week and get paid $9.00/hr, I would have to get at least 10 hours, 5 hours off of work and 5 hours off my personal time. I could use this time to go to the dealership pick out the car and do all the loans and transactions necessary. Filling out all that paper work can take a lot of time, and since I am a college student I need time for school as well. then my Non-monetary cost is 10 hours of my time from my work-time/personal time. Another cost would be the amount of gas that it takes to drive to the dealership and the time it takes me to tr avel there.If mortal is accompanying me and helping me decide which car I want, I am also using their time which could be almost as much as my time. Benefits 1. Savings at the Pump All Hybrids get a better fuel economy than their counterparts. 2. Lower policy Rates Insurance rates can depend on many things such as your driving record, your age, and it can also depend on the model car you drive. Driving a Prius will lower your insurance rate from 5-10% 3. political sympathies Assistance The Federal Tax credit was also a great benefit although they stopped giving it at the end of 2010(Fuel Economy.gov).4. Lower Emissions A fact that should be considered is that 97% of all vehicles in the U. S are dependent on Oil. Also with lower emissions itll help less ascorbic acid Monoxide adding to Global Warming. In fact, Regular vehicles create 1/3 of the nursery effect (Karim, Layton). The key thing here is that the amount of pollution allowed does not depend on the gasoline mileage your c ar gets. But a car that burns twice as much gas to go a mile will generate approximately twice as much pollution. That pollution will have to be removed by the emissions subdue equipment on the car.So decreasing the fuel consumption of the car is one of the surest ways to decrease emissions (Karim, Layton). 5. Special Car-Pool Lanes In some states if you own a hybrid car, you are allowed to use a special car-pool lane heedless how many people are in the vehicle. After identifying all the monetary and non-monetary costs. We can see that the Sticker price is more expensive than purchasing a regular vehicle. However, in the long run with the gas mileage we will be receiving from this awesome hybrid technology it will result for everything that weve spent.Its sort of an investment. If we add all the benefits, we can see that we are not only benefiting ourselves when we purchase a hybrid but we are helping the environment and our world (Fuel Economy. gov). More people are buying more hybrid cars everyday, the sales of hybrid cars increased 141% from 2004-2005 (Karim, Layton). In conclusion, I recommend everyone that if they are looking to buy a new vehicle, hybrid is the way to go. All the benefits we receive from it are totally worth it, and although the cost might be somewhat high in comparison to other cars, its worth it.Not only will we be saving gas driving to work, school and other places, but also we wint take into as much consideration the price of gas next time we stop at the gas stationReferences Fuel Economy. gov. (n. d. ). Retrieved from http//www. fueleconomy. gov/feg/hybrid_sbs_cars. shtml Hensley, R. , Knupfer, S. M. , & Krieger, A. (2011). The fast lane to the adoption of electric cars. Mckinsey Quarterly, (1), 10-14. Nice, Karim, and Julia Layton. How Hybrid Cars Work 20 July 2000. HowStuffWorks. com. 04 April 2012.