The alleged impact of cars on the environment has been a topic of debate for many years. Toyota launched the world’s first hybrid vehicle in 1996 as an attempt to appease those concerned about this, and it quickly became a favourite amongst A-list Hollywood celebrities such as Cameron Diaz, who were keen to show off their green credentials. However, as car running costs continue to spiral out of control, environmental vehicles are beginning to appeal to the masses. This is due to the fuel savings possible with such cars and the fact that cheap car insurance deals are available to motorists who own environmentally friendly vehicles.
We therefore take a look at the green alternatives which are now available, and evaluate the cost savings that are possible in order to determine the best option.
Diesel vehicles
Diesel cars require the least adaption on behalf of motorists, with the only noticeable change being that they will be filling up their vehicles with a different coloured hose. The reputation of diesel vehicles is not exactly sparkling due to stereotypes built up during the 1980s when the performance of diesel vehicles was woeful in comparison to their petrol alternatives. However, this image is now inaccurate with diesel vehicles performance often offering similar performance levels.
Renault diesel Clio model is the perfect example of the fuel savings possible through diesel vehicles. The 1.5 litre version is capable of completing 67.3 miles per gallon (mpg) of fuel, which would cost the average driver travelling 12,000 per annum £1,135 per year if diesel prices remained at their current rate.
To put this into context, the 1.2 litre Petrol version of the Clio is capable of 47.9 miles per gallon and would cost the average driver £1,550 per year in fuel costs alone if petrol prices remained at their current rate. This is a saving of over £400 before the reduced road tax rate is taken into account, with the diesel Clio costing about £100 less to tax per year.
Therefore, despite the fact that diesel costs more per litre, the diesel Clio is actually cheaper to run over the course of the year thanks to its more economical use of fuel. This is a trend which can also be seen across many other manufacturers’ range of models.
Hybrid vehicles
Toyota’s Prius model went largely unchallenged in the hybrid market for many years after its launch due to the high research and development costs necessary to develop such a model. Manufacturers simply felt that fuel costs savings would simply not be recovered by consumers due to the high initial cost of purchase which reflect these research and development expenses.
However, in recent years this has changed, with research by MoneySupermarket.com suggesting that 5% of motorists have been forced off the road altogether by high fuel and insurance prices. Volkswagen has therefore introduced the hybrid Polo.
Polo Bluemotion model which is exempt from road tax and capable of 80mpg. It would therefore cost the average driver just £950 per year to fuel and tax the vehicle before insurance costs were taken into account. These would likely be discounted compared to diesel or petrol alternatives, with most insurance companies eager to be seen to be encouraging the adoption of environmental vehicles.
Electric vehicles Electric cars used to be thought of as a thing of the future, but this is no longer the case with Nissan introducing the world first mass produced fully electric vehicle earlier this year which is called the Leaf.
The Leaf is capable of completing 100 miles between charges and has a top speed of 92mph. Power for the vehicle is sourced from mains electricity, with it expected that powering the vehicle to do 12,000 miles per year would add just £300 to your annual electricity bill. Like the Polo Bluemotion, the Nissan Leaf is exempt from road tax charges and would also be eligible for insurance savings from environmentally minded insurers.
The best option Viewing this from a running cost perspective, it is clear that the Leaf is by far the cheapest option costing £650 per year less than the hybrid Polo, over £800 less than the diesel Renault Clio.
However this does not tell the whole story, with the Nissan Leaf costing £26,000 to buy from new. This is £11,500 more expensive than the Polo and £13,000 more than the Clio. It would therefore take 18 and 17 year respectively to recover the cost different between the Leaf and its alternatives in terms of running cost savings. The impracticality of electric car ownership should also be considered, with 100 miles being a relatively short distance at the moment given the lack of recharging station infrastructure in the country.
It therefore boils down to a straight fight between diesels and hybrids, with Polo being £1,500 more expensive than the diesel Clio. This is a remarkably good deal considering that you would be getting a hybrid engine capable of 80mpg as standard. At present prices it would take about 7 years to recover this £1,500 given the £200 running cost different between the two motors. However, with fuel prices set to continue to escalate in the coming years, the time it takes to recover this price difference will significantly decrease, and the Polo Bluemotion will likely look like the better option.
In summary, there is little to choose between diesel and hybrids at the moment, but with fuel prices set to increase further in coming years, it might be worth taking that hybrid option a little more seriously.