This quest started based on seeing a lot of Toyota Prius' on the road these days. I began to wonder how efficient is the Toyota Prius compared to other cars? How much does one cost versus other comparable cars? Is a hyrbid that much more gas efficient than a gasoline powered car? What impacts consumer opinion more - MSRP or fuel cost efficiency? What ultimately impacts consumer's wallets?
I set out to find a. what is the maximum gas mileage car I can buy today, and b. is it cost efficient to do so?
After getting a sense of overall market perceptions on different brands using Google Trends, I pulled a number of different data points from Automotive.com. What I found on the surface was unsurprising: The Toyota Prius boasts the highest City miles per gallon(MPG) (60) of the cars categorized by Automotive.com as 40 MPG+. I also found that the Honda Insight claims 60 MPG city. Given that information, it would seem practical that everyone who wants to save money should consider a Prius or Insight. But these cars have the higher MSRP pricing so consumers may sway and buy something cheaper.
To answer this, I calculated total loaded cost over time by visiting the US Energy Information Administration website to find out the current average price of gasoline ($2.19). The following charts outline my findings and show the surprising result that for those consumers seeking to drive the most cost efficient car possible, there are a number of options available beyond the Prius when both MSRP and MPG are both part of the consideration over time.
This chart shows the cost per passenger mile over ten years assuming the car is always driven at full occupancy (total seats = total passengers).
Because most people drive at less than full occupancy, I thought it was important to graph different cost per mile metrics based on average occupancy. Based on lower occupancy rates, different cars can compete more strongly (like the Honda Insight).
So, overall, what is the right car to buy? It depends on priorities. With the average price per passenger mile ranging from $0.03 to $0.23 there is a strong argument that finding the best balance between MPG and MSRP price is probably the smartest way to achieve maxmimum cost-efficiency. However, because lifestyle is a big part of that range as well (attitudes toward the environment, average number of passengers, style, etc.) people will fall in different areas on the graph despite what is best for their wallet. What is clear is that basing financial decisions based on MPG OR MSRP is a sure way to not achieve your goal. It is also clear that any manufacturer who can create the highest MPG AND lowest MSRP will kill the market with sales. How about a "100 MPG, $10,000 car"? It has a nice ring to it.
