CAN YOUR CAR SAVE YOU MONEY?

PETROL OR DIESEL?
Did you think that Diesel vehicle drivers were paying more road user charges than petrol drivers? Think again. In fact, according the AA, petrol users end up paying a disproportionate amount of tax compared to diesel motorists. That's because their taxes and levies are included in the price of fuel at the pump, whereas diesel users pay a separate Road User Charge. In fact, ever since all petrol taxes have been paid to the National Land Transport Fund, the amount paid into the fund by petrol users has doubled, while the amount paid by diesel users has remained the same. That's regardless of the fact that diesel vehicles produce more pollution than their petrol counterparts. So it seems that the government is not exactly encouraging the 'greener' alternative.

HYBRIDS: REAL ADVANTAGES AND HIDDEN COSTS
Given the trend of rising fuel prices -and knowing that it will keep doing so until we straight run out, would a hybrid car make economical sense? Well, not yet, unfortunately. Even though hybrids are much more fuel efficient, chances are that you won't save enough on running costs to justify the price difference. The government, for once, is not to blame: greedy car manufacturers are.

The Union of Concerned Scientists have mentioned that the more popular models (2010 Ford Fusion Hybrid and 2009 Honda Civic Hybrid) which emit 31 percent less heat-trapping pollution than the gas-powered versions, should cost about $5,800 more -thanks to the hybrid drivetrains. However, they cost between $10,200 and $11,600 more, because they also come with “forced features,”. These are DVD players, leather interior, navigation systems and normally optional extras -those you probably wouldn't want if you were after saving money in the first place.

The good news is still to come: next year. Honda recently announced its plans to sell its 2011 Insight model for the same price as a petrol vehicle. That's for a car that will knock off 40 to 50% of CO2 emissions (they didn't say how much petrol it will save you however, and note that the Insight is a tiny two-seater with no cargo space). Should Toyota (number one on the hybrid market so far) decide to follow and lower their prices, the trend will be set, allowing the consumer to save money as well as the planet.

How much can you really expect to save from using a hybrid car anyway? Well, provided you're willing to make the initial investment, you could get it back within a few years then start making some substantial savings. For example, use a Civic Hybrid instead of a 20-mpg Accord V-6 and you'll save $2,960 a year (on $1.789 petrol). Commute in the hybrid rather than a 13-mpg sport-utility and you save $5,700 per year.(*)

LET'S GO ALL ELECTRIC!
As for the purely electric car, there are some good news too. For one, New Zealand government has announced that they would be exempt of Road User Charges until 2013. Wellington is pushing hard to open recharging electric stations across the city. On the other hand, under the ETS, electricity prices are due to rise, with no real movement towards giving the consumer any alternative. Not to mention that, as technology stands, electric vehicles are still only viable for short, city-bound commute (provided your shopping wasn't too large either). In summary, all-electric motoring remains in a faraway, still uncertain future.

WHAT NEXT THEN?
In the meantime, and until New Zealand Government comes up with significant tax incentives for people who are willing to make the right environmental choice, going 'car green' remains rather ideological. A fact that makes little sense, in the light of the Emissions Trading Scheme, which has come into force on the first of July this year -and is bound to cost the consumer a large amount of money. In fact, on the very day of its enforcement, prices at the pump went up by 3c for petrol and 4c for diesel.

Okay, so you don't have the extra cash to spare but need a new car: there are some ways to start saving on motoring costs. NZ Transport Agency's Right Car website offers good all round advice and let you compare different models in terms of safety, fuel efficiency and CO2 emissions. If you want to calculate the running cost of your car, visit this other rather good NZ Transport website.
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