Eco Car

A formula to see how many days it will take to pay off a hybrid compared to other car?

Is this equation correct? I'm trying to see how many days it will take to pay off the extra cash for a hybrid, compared to a cheaper normal car.
Key:
DH = Days to pay off Hybrid
H = Hybrid cost.
O = Other car.
G = Current gas price

DH = (H - C) / G

I think G is wrong. Cause it does cost money to run the hybrid, just less. So I'm not sure how to figure that one out. Mabye G - HG(Hybrid gas cost?)

The formula does get quite complicated. I assume that you are looking at the break even point between buying the hybrid verses buying a convential car. That will depend on the cost of the gas, and the difference in MPG between the two cars.

For example, let's say you drive 15K miles a year. The hybrid averages 30 mpg and the convential car gets 20 mpg, and the cost of gas is $3 a gal.

15000mi / 30mpg = 500 gal -- hybrid -- X $3= $1500/ yr cost

1500mi / 20mpg = 750 gal -- regular -- X $3 = $2250/yr cost

$2250 - $1500 = $750 -- higher yearly gas cost.

Take the extra amount you pay for the hybrid and divide it by the $750 yearly gas cost and that is how long it will take you to break even by buying the hybrid.

If the hybrid is $4000 more than a gas model, then it is:

$4000 / $750 = 5.33 years to break even or basically, it will take you 5 years and 4 months before it will benefit you by buying the hybrid.

This also ignores the fact that you could have to borrow the extra money and the interest that you have to pay on the money, and the amount of money that you could have earned if you had invested the money in an interest beargin account.

Be sure to factor that into your equasion to get the correct length of time that it takes to come ahead by buying the hybrid.

good luck.

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