The Economic Reality Of Hybrid Vehicles
Executive Summary:
The high price of gas at the pump has many Americans looking for alternates to their gas powered vehicles. One of the most popular option right now is a hybrid vehicle. The question that comes to mind is, are hybrid vehicles worth it? With record high gas prices due to the price of oil, most car owners out there have major concerns over their gas usage. Over the past ten years, the cost of gasoline has grown 250%! The price of oil has doubled since January of this year. The high prices of oil and gas is the driving factor for most of the people to trade their gas powered vehicles for hybrid vehicles. These vehicles promise to give consumers more mileage per gallon, the truth is that only a few vehicles currently in the market actually make any sort of financial sense.
There are quite a few issues with buying hybrid vehicles, even with gas prices at more than $4 a gallon. First, these vehicles are much higher in price than their gas powered counter part so, the premiums attached to their price tags do not justify extra mileage that you get. In some cases car dealers are selling popular vehicles at much higher prices than MSRP. Second, there are no laws and regulations controlling the technology, price, and the mileage per gallon required out of these vehicles. Currently, there are hybrid vehicles in the market that offer an improvement of 3MPG to 18 MPG over their gas powered counterpart. This is a huge range that needs to be controlled. Third, the demand of these vehicles is driving the prices of the vehicles even higher, if people knew that it would take many years for fuel savings to pay back the hybrid premium on many models, the demand on these models would be much lower, driving the prices down.
The solutions that I would like to propose is the government to work with auto manufacturers to develop a standard for hybrid vehicles. This standard should control the minimum mileage offered per gallon, and...
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