Evaluative Commentary

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Comparison of Hybrid vs. Normal Cars: Which Saves Money? More than 40 different 2011 models of hybrid cars vied for U.S. market share, including not only compacts, but sedans, SUVs, crossovers and pickup trucks. With fuel economy figures for hybrids ranging from a high of 51 city/48 highway miles per gallon, to a low of 17 city/21 highway, the money you stand to save by choosing a hybrid depends on the model. (See References 1) By comparing initial price and fuel savings, you can determine whether a particular hybrid is more economical than its standard counterpart. Initial Cost The manufacturer's suggested retail price (MSRP) for a vehicle is the basic criterion for comparison shopping. When considering the purchase of a crossover-style car, for example, compare the standard, fuel-powered model with the manufacturer's corresponding hybrid model, if possible, to make a side-by-side comparison of cost. For the sake of illustration, take a base model with a MSRP of $38,375, and compare it to the same model with a hybrid engine offered by the same manufacturer at a base MSRP of $43,935. The hybrid model costs $5560 more. Government Rebates Consumers who purchased a hybrid vehicle between Dec. 31, 2005 and Mar. 31, 2010 were eligible for up to $3,400 in federal tax credits. The amount of the credit depended on how many hybrids the automaker of a given vehicle sold. Once a manufacturer's hybrid sales topped 60,000, the government reduced the tax credit available to subsequent purchasers by 50 percent, and then later by an additional 25 percent, until the incentive disappeared altogether. (See References 2) Hybrids eligible for this tax incentive in effect cost less than their MSRP. In the above example, the crossover hybrid's purchase price would have been reduced to just $2160 more than the standard model --- if the buyer received the full credit. Fuel Economy When you purchase a hybrid, you would expect to save gasoline, since the vehicle operates partially on electricity. In the above example, the standard, two-wheel-drive 2011 model's combined highway and city estimated fuel usage is 21 miles per gallon. The same model with a hybrid engine has an estimated combined gas mileage of 30 miles per gallon (see References 3). If you plan to keep the hybrid for several years, your gas savings

Transcript of Evaluative Commentary

Page 1: Evaluative Commentary

Comparison of Hybrid vs. Normal Cars: Which Saves Money?More than 40 different 2011 models of hybrid cars vied for U.S. market share, including not only compacts, but sedans, SUVs, crossovers and pickup trucks. With fuel economy figures for hybrids ranging from a high of 51 city/48 highway miles per gallon, to a low of 17 city/21 highway, the money you stand to save by choosing a hybrid depends on the model. (See References 1) By comparing initial price and fuel savings, you can determine whether a particular hybrid is more economical than its standard counterpart.

Initial Cost

The manufacturer's suggested retail price (MSRP) for a vehicle is the basic criterion for comparison shopping. When considering the purchase of a crossover-style car, for example, compare the standard, fuel-powered model with the manufacturer's corresponding hybrid model, if possible, to make a side-by-side comparison of cost. For the sake of illustration, take a base model with a MSRP of $38,375, and compare it to the same model with a hybrid engine offered by the same manufacturer at a base MSRP of $43,935. The hybrid model costs $5560 more.Government Rebates

Consumers who purchased a hybrid vehicle between Dec. 31, 2005 and Mar. 31, 2010 were eligible for up to $3,400 in federal tax credits. The amount of the credit depended on how many hybrids the automaker of a given vehicle sold. Once a manufacturer's hybrid sales topped 60,000, the government reduced the tax credit available to subsequent purchasers by 50 percent, and then later by an additional 25 percent, until the incentive disappeared altogether. (See References 2) Hybrids eligible for this tax incentive in effect cost less than their MSRP. In the above example, the crossover hybrid's purchase price would have been reduced to just $2160 more than the standard model --- if the buyer received the full credit.

Fuel Economy

When you purchase a hybrid, you would expect to save gasoline, since the vehicle operates partially on electricity. In the above example, the standard, two-wheel-drive 2011 model's combined highway and city estimated fuel usage is 21 miles per gallon. The same model with a hybrid engine has an estimated combined gas mileage of 30 miles per gallon (see References 3). If you plan to keep the hybrid for several years, your gas savings would likely compensate for the higher sticker price, particularly with that year's rapid increase in gasoline prices.Gas Savings in Dollars and Cents

To determine the actual fuel savings over a typical year of driving, compare the operating cost of a hybrid versus a standard model. A U.S. Department of Transportation summary, dated February 2003, reports the average American driver between the ages of 34 and 55 drives 15,291 miles annually (see References 4). Divide this annual mileage figure by 21 miles to the gallon for the standard model, and you will find that you would buy about 728 gallons of gasoline a year. In contrast, if you divide the annual miles figure by 30 for the hybrid, you would determine that the annual gas

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purchase would be of about 510 gallons. You would save 218 gallons of gas a year with the hybrid. Multiply this by a conservative $3.50 a gallon for a dollar savings of $763. By selecting the hybrid over the standard model, you would make up for the $5,560 difference in sticker price in seven to eight years. Subtract the maximum tax incentive and you could recoup the $2,160 difference in less than three years. Thus, in this example, you would save money either by paying full price and driving your hybrid for more than eight years, or by driving it for more than three years with a tax credit.

Introduction:

Overview of the article The article illustrates more than 40 different 2011 models of hybrid cars vied for U.S. market share, including not only compacts, but sedans, SUVs, crossovers and pickup trucks. Author’s tone The author is optimistic about comparing initial price and fuel savings, you can determine whether a particular hybrid is more economical than its standard counterpart.

Evaluation of the article:

Main point 1 Firstly, the initial cost of normal car and hybrid car. The manufacturer's suggested retail price (MSRP) for a vehicle is the basic criterion for comparison shopping. When considering the purchase of a crossover-style car, for example, compare the standard, fuel-powered model with the manufacturer's corresponding hybrid model. take a base model with a MSRP of $38,375, and compare it to the same model with a hybrid engine offered by the same manufacturer at a base MSRP of $43,935. The hybrid model costs $5560 more.Supporting detailsStrong evidence

Main point 2Supporting detailsStrong evidence

Main point 3Supporting detailsStrong evidence

Main point 4Supporting detailsStrong evidence

Your personal view or opinion about the article:Personal view

I totally agree with the author that hybrid car most efficient car because this age of economy the assumption is much higher and the price of fuel per gallons is also higher by increasing annually.However, I feel that normal car is more affordable by the average income in society.

Conclusion:

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First, hybrid cars cost a bit more than the normal cars. Although it costs $5560 more, it can provide us a better saving in our budget and make us save the world. Similarly, the normal cars also can save our budget if we use it well.

Moreover, consumers who purchased a hybrid vehicle between Dec. 31, 2005 and Mar. 31, 2010 were eligible for up to $3,400 in federal tax credits. The amount of the credit depended on how many hybrids the automaker of a given vehicle sold. We can save our money on paying tax, loan and as well as bank interests.

The author further highlights the usage of fuel in economy. Hybrid cars is the seed for a friendly fuel economy and serves as a catalyst for your gas savings that would likely compensate for the higher sticker price, particularly with that year's rapid increase in gasoline prices. Besides, hybrid cars are also indicators of high saving rate. For example, the saving rate of the standard two-wheel-drive 2011 model's combined highway and city estimated fuel usage is 21 miles per gallon. The same model with a hybrid engine has an estimated combined gas mileage of 30 miles per gallon.

I totally agree with the author that hybrid car most efficient car because this age of economy the assumption is much higher and the price of fuel per gallons is also higher by increasing annually.However, I feel that normal car is more affordable by the average income in society that has a lower costs. Hybrid cars costs more than the normal cars. The author is correct that this fact can be generalized, the hybrid cars can provide better saving, Hybrid cars is a future plan to save both us and the world.

In summary, I reaffirm my stand that hybrid cars is the best way to save. Nevertheless, I firmly believe that it is not the only our passport to save more, as there are certain type of normal cars that can also saves better. Therefore, hybrid cars can save more money than the normal cars.