Canadian hybrid cost study

[crv16]

A few flaws in their analysis:

1)  They are using MSRP, when they should be using TMV.  Hybrids sell at or near sticker.  The non-hybrid versions they compare them to sell at or near invoice.

2)  They are using manufacturer MPG ratings, when they should be using real world fuel economy figures.  

3)  For whatever reason, they are using a 7.25% interest rate for non hybrids, and a 4.25% interest rate for hybrids.  Both should qualify for the same interest rate.

4)  They are neglecting to include resale value.  A hybrid (theoretically) should be worth more at the end of 5 years.

[giant_mtb]

3) For whatever reason, they are using a 7.25% interest rate for non hybrids, and a 4.25% interest rate for hybrids. Both should qualify for the same interest rate.


I thought insurance was more expensive for hybrids?...which would explain the higher interest rate? (I don't know much about insurance or any of that, so I may be wrong)

[TBR]

3) For whatever reason, they are using a 7.25% interest rate for non hybrids, and a 4.25% interest rate for hybrids. Both should qualify for the same interest rate.


I thought insurance was more expensive for hybrids?...which would explain the higher interest rate? (I don't know much about insurance or any of that, so I may be wrong)

Interest rates have nothing to do with insurance. That is a bit of a mystery, but resale value would probably make up for whatever advantage the hybrids gained because of the lower interest rates.