Break-even analysis

  • 2011 Toyota Prius

    With fuel prices continuing to edge higher, the cost benefit of fuel saving hybrid and diesel vehicles are now more important than ever. We recently looked at why mainstream automakers in the U.S. refuse to launch more fuel efficient diesel models locally, and now we have details of a new study that’s looked into the often mystifying break-even costs of hybrid vehicles. For the uninitiated, the break-even cost for a hybrid vehicle is essentially the amount of time it would take to cover the cost premium of the hybrid vehicle over a comparable gas-only model, assuming a given price for...

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