Are Hybrid Cars A Good Buy?

Abstract

This case examines the benefits and costs of buying a hybrid car. Students examine the car purchase decision along with depreciation rates and the long-term value of hybrid cars, while they calculate the benefits and costs of the various hybrid vehicles and their comparable sister cars. Secondary issues include an examination of the trade-in value for non-hybrid cars and the horsepower and greenhouse gas emission differences between hybrid and their sister cars. Furthermore, students will examine whether or not the federal tax credit for hybrids should be reinstated.