Consumer Reports Revises Financial Analysis In Report on Ownership Costs for Hybrid Cars

Hybrid cars can offer environmental and performance advantages; but only two of the six hybrids examined by CR recovered their price premium after 5 years, 75,000 miles

April 2006 Issue

YONKERS, NY--March 7, 2006-Consumer Reports is revising the cost analysis in a story that examines the ownership costs and financial benefits associated with hybrid cars. The story, titled "The dollars and sense of hybrids," appears in the Annual April Auto issue of CR on newsstands now.

Consumer Reports is correcting a calculation error involving the depreciation for the six hybrid vehicles that, in the story, were compared to their conventionally powered counterparts. The error led the publication to overstate how much extra money the hybrids will cost owners during the first five years.

CR's revised analysis shows that two of the six hybrids recovered their price premium in the first five years and 75,000 miles of ownership. The Toyota Prius and Honda Civic Hybrid provide a savings of about $400 and $300, respectively, when compared with their all-gas counterparts--as long as federal tax credits apply. But extra ownership costs during the first five years and 75,000 miles for the other four hybrids ranged from an estimated $1,900 to $5,500, compared to similar all-gas models.

Previously, Consumer Reports had reported that its analysis showed that none of the six hybrids it had tested recovered its price premium in the first five years and 75,000 miles of ownership.

The error does not affect the main message of the story, which is that most hybrids do not save their owners money in the first few years, and that the benefits and costs of hybrids vary significantly, depending on the model. Because of the wide range of hybrid vehicles available, it's especially important for consumers to look carefully at all aspects of a vehicle before buying.

"In maintaining our commitment to the highest levels of accuracy and credibility, Consumer Reports is posting a revised version of the report on its Web site as quickly as possible," said CR's Automotive Editor Rik Paul. "We deeply regret the error."

Paul said that it's important for consumers to have the most accurate information in order to make informed buying decisions. Consumers need to know both the pros and the cons of owning a hybrid vehicle, he said.

The revised story, including a new and more detailed comparison chart, will be posted at www.ConsumerReports.org/autos2006.

Consumer Reports has repeatedly pointed to the environmental and performance advantages offered by hybrid sedans and hybrid sport-utility vehicles. Hybrids typically do well in CR's test ratings, as well as in its reliability and owner satisfaction ratings. The story in the 2006 Annual April Auto Issue examines whether hybrids will actually save their owners money over the first five years.

APRIL 2006
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