| the MSRP on a 2008 Lexus RX400H is $42,680...it gets 31/27 mpg according to the EPA, but MANY actual customers online say they are averaging a disappointing 25mpg overall the MSRP on a 2008 Lexus RX350 is $37,400...it gets 18/23 mpg...lets say the average is 20mpg overall this is for the base models with no options you pay $5,280 more for the hybrid and you get about 5 more mpg...we will assume gas is $4 a gallon for this problem
on a full tank in the RX400H, you drive about:
25mpg If you drive 12,000 miles a year then, 12,000 miles / 25 mpg= 480 gallons of fuel 480 gallons X $4 = $1,920 in annual fuel cost for the HYBRID
on a full tank in the RX350, you drive about:
20mpg If you drive 12,000 miles a year then, 12,000 miles / 20mpg = 600 gallons of fuel 600 gallons X $4 = $2,400 in annual fuel cost for the RX350
so you save about $480 a year with the HYBRID after driving either car 12,000 miles a year
now, you paid $5,280 more for the HYBRID…lets see what it takes to make up that amount $5,280 / $480 = 11 years 12,000 miles X 11 = 132,000 miles
This means you will have to drive this HYBRID about 132,000 miles before your savings on fuel equals the premium you paid for the car…that’s gonna take you 11 years according to my equation…will you even own the car that long?
Now, lets talk about the variables 1) the cost of fuel will rise so you probably will not have to drive the full 132,000 miles, but will still probably be close
2) BUT the $5,280 more you paid up front is worth a lot more now than it will be in 11 years…the time value of money says a dollar today is worth more than a dollar tomorrow…you have to discount that forward 11 years and account for inflation as well…not to mention the money you COULD have been earning by investing that $5,280 elsewhere
My point is that while hybrids might get better MPG and “save the earth”, it doesn’t make economical sense in the long run. pass this on.
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