No wonder government is screwed up. All we have to do is point to non-dynamic thinkers like this one and lots of questions about government efficiency are answered.
Quote:
Officials in Ann Arbor, Mich., decided not to add hybrids to their fleet after determining the costs would outweigh the benefits. Ann Arbor has other types of alternate-fuel vehicles, but found that hybrids just weren't cost-effective, said David Konkle, the city's energy coordinator.
Konkle estimated the hybrids would save $300 to $500 a year each in gas, making it impossible to make up the difference in purchase price, which he said was $8,000.
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Not only is this individual wrong about the "premium" but doesn't seem to understand the concept of total cost of ownership. TCO is a very powerful and important way of evaluating the cost of nearly any depreciable and consumable good. If you buy a vehicle and all you have to do to it is fuel it and change the oil every now and then and otehr maintenance costs are reduced due to the design of the vehicle, I bet that TCO will be lower than one of those lower priced cars they are buying instead.
Quote:
Bradley Berman, editor of hybridcars.com, a consumer-information site, said fleet managers need to look at how much they typically drive a vehicle and how long they keep it.
"Obviously, the more you drive the more you save and the more compelling the financial equation is," Berman said.
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Now that makes sense, and is more in line with TCO.