Cost of owning a hybrid
Most hybrids are based on existing gasoline-only models, but the hybrid system changes the original car's technical specifications, adding horsepower while increasing gas mileage, and making it difficult to compare prices. In Singapore, despite tax rebates, there is still a premium attached to the latest in hybrid technology. For example, the top trim-level Honda Civic 2.0-liter Si Automatic shares many interior attributes with the Honda Civic Hybrid 1.3-liter i-VTEC CVT, but costs the same. However, the Honda Civic 2.0-liter gets almost 40 horsepower more than the hybrid due to its hybrid system, but the hybrid gives better fuel efficiency in city driving, at 21km/liter vs. 9.4km/liter for the Honda Civic 2.0 SI.
Tax breaks for hybrids
Sure, you'll spend less on fuel, but hybrids in Singapore qualify for a tax break, too. The Singapore Government offers a tax rebate of 40 percent of the Open Market Value of the car, to be used to offset the Additional Registration Fee (ARF), on the purchase of a hybrid.
A Singapore example
As an example for Singapore (for an overview of Singapore vehicle tax structure, click here):Green vehicles attract an ARF of 70 percent of the Open Market Value of the car, compared with the usual 110 percent for normal cars. This translates to a lower base price and thus overall a lower list price as well after the dealer markups. However, when it comes to selling the vehicle, one gets a lower price. Singapore's vehicle residual value is greatly influenced by the "scrap value" of the car--the amount of money the Government rebates to the owner of a car if it were deregistered and scrapped. Therefore, if one sells a hybrid vehicle 10 years after owning it, 50 percent of the 70 percent ARF is only 35 percent of the original OMV.
This lower value, termed PARF value, will result in a higher depreciation for Green vehicles in the complex Singapore vehicle tax environment. The Government simply gives you less money when you scrap a hybrid or green car in Singapore, because you paid less in the first place.
Take the Honda Civic Hybrid 1.3-liter i-VTEC CVT:
The Open Market Value is approximately S$26,000. The dealer's cost with freight and duties would be = OMV + ARF + EXCISE DUTY + GST + COE = S$26,000 + (S$26,000*0.7) + (S$26,000*0.2) + (S$26,000*0.07) + S$13,000 = S$64,220
The Civic Hybrid is retailing at S$79,200 and the Honda Civic 2.0-litre Si MT is retailing for exactly the same price. Due to the Green rebates given by the Government at the time of purchase of the car, on scrapping the vehicle after 10 years, the linear depreciation of the car is different from the 2-liter Honda Civic due to its lower PARF.
Hence, the following depreciation calculation:
Depreciation = (Retail price - PARF)/10 years
Honda Civic 2.0-litre Si MT = (S$79,200-S$10,904)/10 = S$6,829.60 per year
Hybrid Civic Hybrid = (S$79,200-S$8,745.80)/10 = S$7,045.42 per year
In addition, the lifespan of the battery pack of a Hybrid vehicle is rated at 250,000km or 10 years, but the local dealer for the Toyota Prius, for example, warrants the battery for only three years or 100,000km. The replacement cost is about S$8,000 based on US dealer quotes. Maintenance-wise, one would probably have to go back to the authorized dealer even after the warranty period as few, if any, third-party workshops would be able to service hybrids and their unique drivetrain. With this lack of competition, the service charges would most probably be on the high side.
City vs. highway driving
Although government incentives may or may not figure into covering the additional cost of a hybrid, fuel savings will definitely play a part. Of course, how long it takes to cover the premium depends on the car model and how it is driven. City driving generally uses less gas with a hybrid than with a gasoline-only car because start-and-stop driving is the most wasteful. Hybrids capture and reuse energy that would be wasted in a gasoline-only car. People that spend the majority of their drive time on the freeway at high speeds will take longer to cover their hybrid's premium from fuel savings.
How will you know what kind of mileage a hybrid might turn out? The US Environmental Protection Agency (EPA) gives you a hint. Every car sold in the US goes through a complicated driving test mandated by the EPA to estimate how much fuel it uses in urban and highway driving. Unfortunately, the procedure is antiquated, resulting in optimistic ratings that understate fuel use by as much as 50 percent. For example, the Toyota Prius goes through about one-quarter of the route with only its electric motor running for exceptional fuel economy on the EPA test. Currently, the EPA is revising its fuel economy tests to provide more realistic numbers for all cars. The new testing will be implemented for all 2008 model cars.
On brake maintenance
One benefit of hybrids that hasn't been well-documented yet is savings on brake maintenance. The regenerative braking systems in hybrids decrease wear-and-tear on brake pads and discs, with the potential to greatly reduce the need for brake maintenance. Hybrid technology goes a long way toward improving mileage and lowering emissions, but it's not the silver bullet. Whether or not a vehicle carries batteries, its weight is always an issue, but Hybrids carry a lot of batteries and are usually significantly heavier than the petrol-only version. While the Escape Hybrid weighs nearly 2,500kg, the poky ol' Civic probably weighs a mere 1,100kg or so, and that missing 1,400 kg makes it a lot easier to achieve good mileage.On the hybrid technology
Also, consider the reason behind the hybrid technology in the car of your choice. Toyota obviously intends the Prius, for example, to be a thrifty, eco-conscious car that boasts one of the best mileage ratings in the industry. The Lexus RX400H, on the other hand, gets only 8.1 liters/100km in EPA tests. That is, however, 3.1 liters/100km better than the gasoline-only RX350, representing a 38 percent gain in efficiency. That 38 percent will make a difference at the pump.On the threat of diesel
In Singapore, diesel cars are taxed seven times higher year-on-year compared with gasoline cars. Future legislative changes to make diesel cars more competitively taxed will make the diesel option a significantly competitive threat to hybrids if only on fuel economy and running costs.
More Tips for Your Car
Maintain a regular service log to keep your car tip-top
Keep a schedule of regular servicing and checks. The data inside will ensure that the correct parts are always fitted and that your car can be easily repaired even after many years of use.
Regular servicing is essential to keeping your car road-worthy
Have servicing carried out regularly by an authorised workshop - It not only affects the road worthiness of the car but also establishes the foundation for better fuel efficiency and consumption.
Service your engine regularly to save on petrol
A badly tuned engine may use up to 10% more fuel than normal, so regular servicing can actually save you money and engine trouble in the long run. It’s also better for the Earth!
