The Value of Driving an Alternative-Fuel Car

Me and my car (photos by David Samuel)

 

 
An article in a recent issue of the American Automobile Club magazine (Westways in California) posed the question, "Does it make economic sense to drive an alternative-fuel car?" I decided to share some data about my experience of owning and driving a Toyota Prius since August 1, 2006.
 
First, I should mention that any discussion relating to economics should identify the fallacy of any financial perspective that doesn't take into consideration the value of an unpolluted environment.
 
The odometer had 3 miles when I paid for the new car with a sticker price of $23,141.  The sales tax was $1,912.85 and there was an electronic filing fee of $28.  I received an alternative motor vehicle tax credit of $3,150 for my income tax that year.
 
Since buying the car, I've needed to refuel once every four weeks.  The yearly gas cost total comes out to an average of $282.26.  It's fortunate that I live less than four miles from where I work.  Regarding annual state vehicle registration, no smog checks are required for a Prius.  
 
I haven't had any mechanical problems with the car.  Every six months, I've gone to a local Toyota dealer for a maintenance visit.  I received a recall notice and an accelerator pedal modification was made at no charge.  The average yearly dealer service cost has been $251.67.  The average annual mileage has been 3,863.
 
I was glad to see the announcement of an agreement between the people of Tesla Motors, Inc. and Toyota Motor Corporation to develop an electric version of the RAV4.
 
I concur with the observation of Peter Bohr in the AAA article:
 

Fewer smog-forming emissions.  Fewer climate-changing greenhouse gases.  Fewer barrels of foreign-sourced petroleum.  Vehicles with alternative power sources definitely benefit both the environment and society. 

 
7/24/12 Update: This year I haven't felt satisfied with the service received at Keyes Toyota in Van Nuys.  In January for the 66 Month service, I had to complain to the Service Manager when the Service Advisor told me what the car needed and then wanted to stamp both the 66 and 72 Months verifications in my maintenance guide - I insisted on just the 66 Months maintenance items being done.  A few weeks later, the tires needed air.  Today I took the car in for the 72 Months servicing (odometer: 25,364) and while I was waiting for the standard maintenance procedures to be done, my new Service Manager told me that the water pump was leaking and the drive belt was cracked.  I was glad to have these problems corrected until I overheard my new Service Manager tell her other customer who qas also waiting in the lounge that a leak had been found in her water pump too.  The total for around four and a half hours work came to $634.36.   
 
11/8/14 Update:  Today I purchased new tires at the dealer.  Like many people when it comes to automotive service, I was left wondering if the cost was fair.  I would think so as there was a 'fourth tire free' special so the cost of the tires and labor was only $341.35; however, the service advisor insisted that I have a wheel alignment and this was an additional $89.95.  I also asked for an air filter replacement and he charged me only the part fee for this: $19.44.  The total cost today (including California tire fee and tax) was $477.23.  The previous tires lasted more than eight years.  My current mileage is around only 32,700 because I've worked close to home.