Study shows significant savings in alt-fuel cars


http://www.marketwatch.com/story/study-shows-significant-savings-in-alt-fuel-car\
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SAN FRANCISCO -- Eco-politics aside, there's a real cash advantage to opting for
hybrid and diesel vehicles over gas-powered offerings, despite the costlier
price tag, according to a survey published Thursday.

"The long-time knock against 'green' cars, trucks and SUVs is that their sticker
prices do not justify the gas savings," said James Bell, editor of automotive
industry research Web site IntelliChoice.com, which conducted the study.

"The point we make is that it is not just about fuel," he added in the release.

Of the 51 alternative-fuel cars and trucks tested, 35 delivered cash savings
over a five-year period when taking into account several factors such as
maintenance, repairs and retained value. In some cases, the savings were huge.

Take the Volkswagen Jetta TDI Clean Diesel, which costs about $2,000 more than
its gasoline-powered counterpart. Owners who buy the so-called greener version
of the sedan save more than $6,200 in the first five years, the study showed.

Toyota Motor Corp.'s /quotes/comstock/13*!tm/quotes/nls/tm (TM 73.76, +0.11,
+0.15%) flagship Prius hybrid is another extreme example. When pitted against
the entry-level equivalent Camry sedan, the savings approach $5,000. And the
sticker price is only an extra $1,805.

Bell pointed out that clean diesel technology performed even better than the
hybrids in the study and could be a real "game-changer," especially if the Obama
Administration re-examines the legacy of higher tax rates on diesel fuel.

Obviously, the differences are even more pronounced if gas prices go up, thanks
not only to the direct savings on fuel but also due to the fact that these
vehicles see their resale value surge in times of rising gas costs.

The formula holds up better for smaller cars and crossovers, however. For the
bigger trucks and SUVs, like the GMC Yukon and Cadillac Escalade, the savings
still lie in the standard, gas-quaffing versions due to the big MSRP difference.

And it doesn't always work out with the sedans, either. The study showed that
the Chevy Malibu Hybrid costs about $3,000 more than the non-hybrid version, and
actually costs $250 more to own for five years.