CR made the assumption that most people want a comparison between hybrid and gas only vehicles as closely equipped as possible. Hybrid vs. existing car makes the BIG assumption that there are ONLY hybrids available.

We can shoot holes in their analysis, but with the acception of the Prius/Corolla match they are the fairest match IMHO. Maybe not the Lexus RH400h/RH330 either, don't know anything about them.

 

Ebay was handy and only one 2001 Echo was listed and one 2001 Prius. I tend to prefer Ebay since it represents real deals.

If you prefer blue book value, their web page lets you normalize the cars. The only problem is finding a Blue book deal:

12,000 mi/yr * 5 years = 60,000 mi.
$08,860 - 2001 Echo suggested retail price
$16,250 - 2001 Prius suggested retail price

24,000 mi/yr * 5 years = 120,000 mi.
$07,250 - 2001 Echo suggested retail price
$13,500 - 2001 Prius suggested retail price

As for new prices in 2001, we priced both locally in Huntsville and bought the Echo:
$14,200 - 2001 Echo purchase price
$21,000 - 2001 Prius offered price

Bob Wilson

 

Somebody from my Church jumped on me today about this article.....I take it for what it's worth. I recall 3 years when our local NBC covered CRs test of Hybrids and CR testing was only able to average 30 mpg in a Prius I and Civic HCH I....oh well!

 

Next Sunday, thank them and let them know you've done more study. In fact, opening your Bible, read Proverbs 21:20 "A desirable treasure and oil are in the home of the wise; but a foolish man swallows it up."

Then you might mention that there is some difference of opinion about the Consumer Report article since one of their sources, Vincentric, claims hybrid-electrics have a 16% lower cost of ownership compared to the gas-only 8% lower cost of ownership.

Bob Wilson

 

Thanks for the additional info Bob. This is what I came up with using the figures you provided from Kelly BB.


Your figures from above:

12,000 mi/yr * 5 years = 60,000 mi.
$08,860 - 2001 Echo suggested retail price
$16,250 - 2001 Prius suggested retail price

24,000 mi/yr * 5 years = 120,000 mi.
$07,250 - 2001 Echo suggested retail price
$13,500 - 2001 Prius suggested retail price

As for new prices in 2001, we priced both locally in Huntsville and bought the Echo:
$14,200 - 2001 Echo purchase price
$21,000 - 2001 Prius offered price


My calculations:

01 Prius 5 yr/120k
$7500 depreciation or 36% depreciation from orig price

01 Echo 5 yr/120K
$6950 depreciation or 49% depreciation from orig price


01 Prius 5 yr/60K
$4750 depreciation or 23% depreciation from orig price

01 Echo 5 yr/60K
$5340 depreciation or 38% depreciation from orig price

There may be a problem with my analysis but what I get from this is that the Prius costs more initially but holds its value better.

One other thing thing that could done is factor in the time value of money over the 5 years for the difference in lower sales price for the Echo and
see where that minus the Echo resale value comes out.

Before tvm it looks like this:

$16250 Prius Resale
- 8860 Echo Resale
$ 7390

or

$13500 Prius Resale
- 7250 Echo Resale
$ 6250

Including tvm getting 5% interest on the $6800 difference it looks like this:

$16250 Prius Resale
- 8860 Echo Resale
$ 7390
- 7699.46 $6800 difference plus interest at 5% over 5 years
$ (309.46)

or

$13500 Prius Resale
- 7250 Echo Resale
$ 6250
- 7699.46 $6800 difference plus interest at 5% over 5 years
$ (1249.46)


This means if I bought a Prius and keep it 5 yr/120K and sell it it will cost me at most $1449.46 more that the Echo over the 5 year period, including the price differential. Using CRs mileage amounts (75K) would make the number between the $1449.46 and $309.46 That's between $5 and $25 per month more.

I am not addressing anything but depreciation here but I think CR really missed this part. I believe they did use a Corolla instead so the numbers might change but I am (just) guessing the result would be similar.

 

You're welcome on the data. After my arithmetic error, I'm glad you ran the numbers. I agree CR missed the boat on depreciation costs as others have pointed out. There are several ways to calculate depreciation costs but the consensus is they blew it.

As for using the Corolla, this really confused me. In 2001, we needed a car for my wife and compared the 1500 cc Echo to the 1500 cc Prius. Both cars had simular dimensions, identical displacements and only a 500 lb. difference in weight. We looked at the Corolla but it was significantly lower to the ground than the Echo and Prius; had a larger engine than both the Prius and Echo and; worse MPG than the Echo.

BTW, I wrote CR a 'letter' too:

 

Nice letter to CR. Much better than mine. I wonder if CR will reply to us?

 

No, they do not. They also do not give manufacturer's permission to use their name in advertisements (i.e. you won't see Sears advertising any of their appliances as a "Consumer Reports Best Buy selection").

There are plenty of other publications out there with "Consumers" in their name, including Consumers Digest, which does accept paid advertisments.

 

Add to that Popular Science and Popular Mechanics which accepts paid advertisements including those that are written in exactly the same style as their regular articles.

I would be interested in knowing the exact issue of the Consumer Reports in 2001 that accepted this one and only reported case of a "Paid Advertisement". We have been subscribers for decades and never seen it. Furthermore, I can't find any Google hits that support this claim.

I've called the Huntsville Public Library and they have all 12 issues of the 2001 Consumer Reports bound at the reference desk. I'll head down there after work and go over each and every page.

Bob Wilson

 

Looks like we're gonna get to bottom of this one.