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I have a 2000 Toyota Camry with 131k miles on it. I paid $10k (or $14k with interest).
I found a 2005 Honda Civic Hybrid with 96k miles on it for $8500 at a dealership a few hours away. It blue books for $8400 Private Party Value, and $10200 Dealer (Excellent) value. I'm assuming the asking price is lower because it's going to need a new battery soon at that mileage, and those cost around $1k.
I currently drive a minimum of 300 miles a week, and get 25mpg. The Civic Hybrid will get 40mpg. I figure that with gas at $4.15/gallon like it is right now, I'll save $90/mth in gas with the Hybrid, and with the monthly payment of $125/mth after I sell my car (should be able to get $4k out of it private party value), I'll end up paying a total of $1700 over the course of the 4 year loan (the difference between the $125/mth car payment less the $90/mth saved in gas is $35/mth X 48 mths = $1700).
Of course, I doubt that gas is going to stay at $4.15 for the next 4 years, so the higher gas goes, the more I can take off of that $1700 as the difference in the cost of gas for my Camry versus the gas for the Hybrid, right?
Based on what my mileage will be in 4 years on the Camry versus what the mileage on the Hybrid would be in 4 years, if I wanted to sell at that point, I could get approximately $2500 more out of the Hybrid than the Camry.
So doesn't it make financial sense to go ahead and buy the Hybrid? Or am I just wanting a new car so bad that I'm making it seem better than it is?
My parents think it's ridiculous to buy a new car when this one is paid off, but they don't understand the logistics that I've explained above.
I own a 2007 Civic Hybrid, and two things about your analysis trouble me: First, in my experience, replacing the hybrid battery costs more than $1k. I would make sure of the expense you are looking at in replacing that battery before assuming it will cost only $1k. My hybrid battery died a couple of months ago, and Honda replaced it for free under the 8-year warranty, but if I had had to pay for it, it would have cost me closer to $2k.
Second, the car may get 40 mpg but not if you're using air conditioning, and not if you're driving highway speeds. My car gets just over 40 mpg only when I'm not using the air, and only when I'm consistently driving 45 mph. The mpg with the air on, or at interstate speeds, is more like 35. That's better than most non-hybrid cars, but not better enough to warrant spending the extra up-front cost on a hybrid car.
If I were in your position, and if the Camry is in good shape, I'd stick with it.
I think you're wanting a new car. Also, your calculations are a little off - @ $4.15 you would be saving $85/month rather than $90 (not a big difference); but the assumption that gas won't go back down would be premature. Remember how it spiked a couple of years ago only to drop ~$1.50 a gallon over a short span of time.
Bad idea all around. Your parents are right. Your reasoning relies on best case outcomes, which hardly ever happen. Last time I checked, batteries were about $3k and up. The $1000 figure you are using is for refurbished battery pack, not including shipping or labor, which will eat up another $1000+ if I'm not mistaken. And they are warranted for one year, not three like the new ones. Guess how much a $3000 battery costs over three years? $83/month. That wipes out your supposed savings on fuel. Well, actually it leaves you with a net savings of $2/month. Don't spend it all in one place.
The Camry you are driving is inexpensive to repair, known to last a long time, reasonably efficient, etc. The HCH is not inexpensive to repair, and it doesn't have the longevity reputation of the Camry. Also, your car is paid for. You have been driving the car so you know it's a good car, whereas the Civic could be a can of worms. In other words, you would be rolling the dice. Camrys are a dime a dozen, which means if you blow the engine or transmission, used parts are available all over the place, and most shops have worked on Camrys because there are so many of them. The resale of the Camry is good, even for old ones.
Finally, your purchase would be financed, which would be a bad idea especially since we're talking about financing $4000.
I have a 2000 Toyota Camry with 131k miles on it. I paid $10k (or $14k with interest).
I found a 2005 Honda Civic Hybrid with 96k miles on it for $8500 at a dealership a few hours away. It blue books for $8400 Private Party Value, and $10200 Dealer (Excellent) value. I'm assuming the asking price is lower because it's going to need a new battery soon at that mileage, and those cost around $1k.
I currently drive a minimum of 300 miles a week, and get 25mpg. The Civic Hybrid will get 40mpg. I figure that with gas at $4.15/gallon like it is right now, I'll save $90/mth in gas with the Hybrid, and with the monthly payment of $125/mth after I sell my car (should be able to get $4k out of it private party value), I'll end up paying a total of $1700 over the course of the 4 year loan (the difference between the $125/mth car payment less the $90/mth saved in gas is $35/mth X 48 mths = $1700).
Of course, I doubt that gas is going to stay at $4.15 for the next 4 years, so the higher gas goes, the more I can take off of that $1700 as the difference in the cost of gas for my Camry versus the gas for the Hybrid, right?
Based on what my mileage will be in 4 years on the Camry versus what the mileage on the Hybrid would be in 4 years, if I wanted to sell at that point, I could get approximately $2500 more out of the Hybrid than the Camry.
So doesn't it make financial sense to go ahead and buy the Hybrid? Or am I just wanting a new car so bad that I'm making it seem better than it is?
My parents think it's ridiculous to buy a new car when this one is paid off, but they don't understand the logistics that I've explained above.
i would see what you could change about your current driving habits to get maybe a slight savings in MPG and keep the current car. I'm wary of buying a hybrid at that high mileage and having to worry about the maintenance of it. also, i recall reading something recently about Civic hybrids, and it was negative news. can't remember what it was, but it had to do with the earlier models of the vehicle.
I own a 2007 Civic Hybrid, and two things about your analysis trouble me: First, in my experience, replacing the hybrid battery costs more than $1k. I would make sure of the expense you are looking at in replacing that battery before assuming it will cost only $1k. My hybrid battery died a couple of months ago, and Honda replaced it for free under the 8-year warranty, but if I had had to pay for it, it would have cost me closer to $2k.
Second, the car may get 40 mpg but not if you're using air conditioning, and not if you're driving highway speeds. My car gets just over 40 mpg only when I'm not using the air, and only when I'm consistently driving 45 mph. The mpg with the air on, or at interstate speeds, is more like 35. That's better than most non-hybrid cars, but not better enough to warrant spending the extra up-front cost on a hybrid car.
If I were in your position, and if the Camry is in good shape, I'd stick with it.
exactly, and my TSX gets 34mpg with cruise control at 60-70mph. unfortunately, i'm not convinced that the civic hybrid was worth the money....maybe now, but still not sure.
The Civic Hybrid gets almost the same gas mileage as the non-hybrid Civic. I have an 05 non-hybrid and see 35-40mpg with my current driving habits. So, why pay for the more expensive version?
Next ... There is a reason this car was traded in at this mileage. At just shy of 100K on the hybrid, you're looking at regular maintenance repairs that you see across the board for Civics. Gas powered require timing belts (I'm unsure if hybrids having timing belts?) that NEED to be replaced at 100K to avoid blowing the engine. You also have brakes, wheel bearings and other small ticket items that will need to be updated in the very near future. It is the nature of the beast. My Civic currently has 100,099 miles -- the timing belt was a $650 repair, and I parked it because I need new bearings that I haven't had time to get done.
Hybrid oil changes are also a lot higher in cost --- do yourself a favor and call a service station to get a quote on an oil change.
Gas powered Civics have longevity as long as they've been well cared for. I've taken my older Civics beyond 200K without a problem.
If you're justifying the cost of a newer car vs keeping existing, you can make up the money saved by lowering your Camry costs --- do your own oil changes instead of paying someone else, for example.
Last edited by dragon_fly_12; 05-06-2011 at 11:56 AM..
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