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Escape Hybrid Pay Back

Created October 12, 2004, at 8:07 pm by Anonymous

Assuming you pay $3,000 more for an Escape Hybrid over a comperable V6 small suv, you should get 33 MPG on average VS. about 20 MPG. The $1,500 tax incentive for 2004 will be worth about $500 for many buyers. That leaves $2,500 to be offset with fuel savings.
Fuel cost for 12,000 miles (at $2.00 per gallon)=
$1,164 Non-hybrid and $727 for Escape Hybrid for an annual savings of $437. By 5.7 years, the Hybrid cost has been offset. Add to that the additional perks like being able to drive in the HOV lanes (assuming Federal approvals), 100,000 warranty on the battery pack, transmission and motor, and huge bragging rights.
Since I'm moving from a vehicle that gets 18 MPG, my payback time is even less.

Anonymous

7 years ago

this is similar to my situation. i went from a chevy van to a honda civic hybrid.

i saw the 6 year payback for the difference of price between what i bought and similar gas efficient cars on the market, but also recall (and see ahead) that the price of gas basically doubled twice while i had my van for 10 years. i expect gas to continue to rise faster then the rate of anything else so the payback will be shorter then the full six years.

also, i'm more likely to maintain a mobil lifestyle now then with a gas hog.

i usually drive my cars 10 years so i expect to reach that payback AND return before i trade in my hybrid.

see ya

Anonymous

7 years ago

That is if you can get a Ford Escape Hybrid for suggested retail. When I inquired about the Escape Hybrid, my local dealer gave me a price of $8000 over suggested retail that he called a "market adjustment". I told him to go scratch and I will wait until the Japanese come out with a hybrid SUV and also told him he lost a potential customer!

Anonymous

7 years ago

Doug - There will be plenty of Ford dealers that will have then without any market adjustment. Don't dispair. Look at what happened to Thunderbirds in 2002. About half the dealers wanted a premium when first launched, but they quickly lost customers. Now you can get a new 2004 for thousands off MSRP.
Ford has increased production and that will stop the "Gouging" as soon as the early adopters get theirs.

Anonymous

7 years ago

Perhaps the Automotive News type magazines had it incorrect and Ford has not received additional allocation of battery packs. Dang! I know they can sell all they can build.

You would think Sanyo would try to produce more so other suppliers don't see a vast opportunity and go into production. I see NiMH "D" batteries for sale at under $10 each. If there are 250 of them in the pack, then even with the case and switch you are talking about $3k or less. Whatever they are paying above that must be recovery of R&D/tooling , etc.

Surely there are battery manufacturers that would love to have an order for 35,000 battery packs at $3k each. Thats over $100 million. Ya gotta sell a bunch of flashlight batteries to make a $100 million sale.

Anonymous

7 years ago

I read one article that claimed there was a limit to the number of batteries Sanyo was "licensed" to produce, suggesting they have to pay royalties to someone (Matsushita?).

Of course if that is the case these things can usually be renegotiated but that can take time...

Anonymous

6 years ago

We just bought the Escape and they had a premium added of $300.00. We simply told them to take it off and we would sign. They took it off and we are driving away! Great so far, nice controls.

Anonymous

6 years ago

Opps, That was a $3000.00 premium they took off when requested, not $300.00.

Anonymous

6 years ago

i went to check one out yesterday, they told me i could have it for under sticker price (the store is undergoing major construction) ... montebello ford if anyone wants to check it out

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