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The Kneeslider

Doers Builders and Positive People

Gas slides under $2.00

By Paul Crowe

This morning the price of gasoline in The Kneeslider’s neck of the woods dropped to $1.99, first time it’s been under $2.00 since May. The payback period for all of those hybrid drivers just keeps getting longer and longer.

From yesterday’s Wall Street Journal:

Toyota applauds your willingness to spend $9,500 over the price of any comparable vehicle for the privilege of saving, at current gasoline prices, approximately $580 a year.

And should the price of gasoline rise to $5, after 10 years and/or 130,000 miles of driving, you might even come close to breaking even on your investment in hybrid technology.

Reports of the imminent demise of the internal combustion engine may have been slightly exaggerated.

It’s interesting, too, some sites that point to the article criticize other points the author made and skip over the investment side. We’re doing it to be “green” and friendly to the earth, the money doesn’t count, etc. However, I bet if you polled a lot of the Prius owners, they would say they did it to save money and are none too happy about how things are turning out.

Posted on December 1, 2005 Filed Under: Economics and Politics


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Comments

  1. aaron says

    December 1, 2005 at 12:04 pm

    there’s a lot of hybrid-bashing on the internet. i think they’re cool. the prius is appealing to early adapters and people who want to be different. low gas costs are a bonus, but for those who need a bland familymobile, to some it appeals. (forgive the yodaspeak) besides, if you sell it after 3 years the resale will likely destroy any gm sedan priced similarly today, so the cost may not be an issue after all.

    hold on a sec…….ok, i just checked the kelly blue book online and the resale on a 2004 prius w/ 35000 miles was about a grand higher than a 2004 pontiac gto, even though the gto cost nearly 50% more to start with. whatever the 4 door equivilant is (slipped my mind – grand prix?) will likely sell for a good chunk less, as the rental car lots are probably swamped with them. (i wanted to go older but the last prius was A) not the sales success and conversation piece B) way too small for north american popular taste)

  2. sigint says

    December 1, 2005 at 12:33 pm

    I think it’s good there are hybrid cars. If they aren’t deployed now, when should they be? Should it be when the threat is clear and real? It seems to be that human beings rarely think ahead and always try to fix things when we’re deep in the problem instead of looking ahead and solving the problem now.

    Yes they are “expensive” now but as time goes on they can figure out how to make it cheaper. If hybrids were to be introduced in the mist of the problem, how much do you think a hybrid would cost? Probably a lot more than they do now.

    Also, if what the WSJ is saying is true, then it does make economical sense depending on what your situation is. For example, I can buy a cheapo Walmart DVD player for $20 that’ll last maybe a year or I can buy a high quality one that cost $150 that’ll last for 5 years or longer. Depending on my situation, the one that’s $20 might be a better deal because I have enough money to only spend $20 a year on a DVD player instead of $200 up front.

    Depending on their situation, people might find it better to spend the money on a hybrid and not have to pay as many times for gas in a month. Some people can afford to pay more times per month for gas.

  3. todd says

    December 1, 2005 at 12:38 pm

    it’s all a gimick. Do you think it costs Toyota all that much to include a small electric motor in a car? I think they’re just capitolizing on a trend and non-patriotic anti-war protesters.
    -todd

  4. coho says

    December 1, 2005 at 1:51 pm

    It’s not the dollars worth of gas saved at the end of the year by a single vehicle that makes the hybrids worth a bit more, it’s that they simply use less fuel. Less fuel used, fuel lasts longer. Petroleum based fuel isn’t all but gone, as we’ve been hearing since the ’70s, but we are using it up faster than it is being replenished. If we use it up a bit more slowly, we’ll still have some in the period between now and when we are offered an alternative that’s actually fun. Keep your SUV, they’re handy, but commute on your motorcycle/scooter/hybrid/etc.
    We as a species are notoriously bad at taking the long view, this is an opportunity for us to think (and plan) generationally. I can’t go out and buy a hydrogen powered hover-bike, but it would be cool if my children could (or theirs).

  5. aaron says

    December 1, 2005 at 3:26 pm

    in my first post i forgot to include this:

    besides, when toyota starts combining v8’s (v10’s?) with electric motors, many will be glad we suffered through the first generations of hybrid. Le Mans 2010? i think endurance racing might turn into a fuel economy contest!

    (i know someone at some point will say something about the corvette getting good fuel economy out of a 6L V8… while the corvette c6 has earned my respect, the transmission was designed to trick the standard epa test, forcing you to drive 30 in fourth gear, unless you want to go full throttle before shifting into second. I guess you could shift 1–>4th, then downshift into 2nd or 3rd…)

  6. hoyt says

    December 2, 2005 at 11:26 am

    Todd,

    “non-patriotic, anti-war protesters” — ha! Exercising one’s Freedom of Speech is very patriotic.

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