Consumer Alert: Six Myths About Electric Cars And Plug-In Vehicles

Automakers are scrambling to find an alternative to today's unpredictable gas prices by replacing them with more fuel-efficient rides like hybrids and electric vehicles. While these alternative fuel vehicles represent less than 3 percent of total new-vehicle sales, before taking the plunge here are five questions you should ask yourself:

1. Hybrids always achieve higher gas mileage than gasoline vehicles. While hybrids like the Toyota Prius achieve a combined 50 mpg, that is not always the case with all hybrids. For instance, Subaru offers a XV Crosstrek in a hybrid and a gasoline configuration. Subaru's hybrid achieves a combined 31 mpg, as opposed to their gasoline model which garners 28 mpg. With such a dismal difference in the mpg of the XV Crosstrek, it doesn't justify the price difference to invest in  the XV Crosstrek hybrid. Before buying a hybrid, we recommend visiting fueleconomy.gov to compare the mpg. Over a five-year period, buyers will only save about $750 in fuel costs. Ironically, the XV Crosstrek hybrid stickers for about $4,000 more than a comparable gasoline model. Although hybrids are designed for city driving and stop-and-go traffic, there are gasoline models like the Nissan Altima that can achieve 38 mpg in highway driving.
2. All hybrids are priced the same as their gasoline equals. Most hybrids are priced significantly higher than their non hybrid counterparts. The higher price tag is due to the additional cost of the hybrid battery and other components. In a rare move, the folks at Lincoln have decided to absorb the additional expense of their MKZ hybrid, making it the same price as their 4-cylinder gasoline MKZ. The MKZ gas model achieves about 26 mpg, whereas the MKZ hybrid achieves 45 mpg.
3. Hybrids batteries cost the same as regular (non hybrid) batteries. The cost to replace a typical battery runs around $100 or so, whereas the cost to replace a hybrid battery usually ranges from about $1,800 to about $5,000. This is why hybrid batteries in new vehicles are covered for upwards of 8 years, which is well beyond the typical basic new car warranty.
4. All hybrids, Plug-Ins and Electric vehicles are eligible for federal tax incentives. Only plug-ins, electric vehicles and vehicles equipped with a diesel engine are eligible for federal tax incentives. These incentives will help defer the additional upfront costs. A host of state and local municipalities offers tax deductions, too. Some may include hybrids. There may be some states that offer incentives, too, encouraging folks to drive green. Moreover, some employers offer incentives, encouraging their employees to invest in fuel-efficient vehicles. Visit fueleconomy.gov for the federal tax incentives.  
5. Plug-In hybrids and electric vehicle only need to be charged daily, allowing drives to run their errands and/or to commute to and from work. All-electric vehicles like the Nissan Leaf allow commuters to drive around 84 miles on a full charge. Conversely, plug-in vehicles like the Prius, which runs off of both gas and electricity, only allow commuters to drive 11 miles on a full electric charge, before one has to become dependent on gasoline. Ironically, vehicles like the Chevy Volt, which runs off of gas and an electric charge, allow commuters to drive 38 miles on a full charge, before the gasoline kicks in. So, depending upon the distance of one's daily commute, this will determine how often one will need to charge-up, before relying on gasoline.
6. Many financial experts say it only make sense to lease a new vehicle, when a tax write-off is applicable for business reasons. Since the technology in plug-in and all-electric vehicles are changing as fast as today's smartphones, we recommend leasing the vehicles, especially as it relates to the cost of replacing the battery and the limited driving range. Many automakers offer a number of incentives to help offset the true cost to finance or pay cash for one of these vehicles. Leasing means you will not be stuck with the vehicle after the warranty expires.  And, due to the limited driving range of today's vehicles, most commuters will not have any problems with the mileage restrictions leases require.