For the last two years, the pressure has been high on auto buyers. Our planet finds itself in a precarious situation; greenhouse gases lead to a global warming effect that's starting to have obvious and measurable impacts on polar ice caps. In addition, regular gasoline is now worth about $1/L, with virtually no signs or hope of a long-term decrease. On the contrary, gas prices will most definitely rise over the upcoming years.
For consumers, there are not many solutions: in order to help improve the air quality and reduce our dependence on oil, we must cut our mileage, buy smaller cars or choose diesel-powered or hybrid-electric vehicles. If you have already considered purchasing a hybrid, like I did, chances are you have discovered a harsh reality: interest rates for buying or leasing this type of vehicle continue to be high.
Enough is enough!
I decided to make my own little research. My intention was not to blast hybrid vehicles -- I'm looking to buy one myself. Well, actually, I was looking to buy one until I realized that interest rates range from 5.9 to 11 percent. That's right! You can pay as much as 11 percent interest! Sure, 5.9 percent is not that bad; it's about the same rate as some manufacturers offer when you purchase or lease a regular model like a Nissan Altima, a Toyota Camry or a Honda Civic, just to name a few. But at 11 percent, forget about it! How can governments and car companies still be shocked that consumers are minimally interested in buying Ford Escape Hybrids or the like?
$10,000 in interest
Do you have the slightest idea as to what kind of money this might represent? Let's say you're buying an Escape Hybrid (about $39,000 including taxes) and you agree to make a $4,000 down payment. The remaining $35,000 will be financed over 60 months at an 11-percent rate. Provided that these conditions don't change, you will have to pay approximately $10,000 in interest. In the end, your vehicle will have cost you nearly $50,000 -- obviously taking your down payment into account. True, you can apply for a $2,000 rebate from Transport Canada's ecoAUTO program... and drive through a forest without scaring any deer. But still, would you really want to pay that kind of money? Me neither.
In general, interest rates for the financing on hybrid vehicles hovers around 6.8-6.9 percent. Aside from the Escape Hybrid, there's another model that carries a dissuasive interest rate: the Honda Civic Hybrid. Indeed, the company charges 7.75 percent interest to Civic buyers and -- get this -- 8.85 percent to leasers. Personally, this is the vehicle I was considering, until I learned about the ridiculous interest rate. At $26,250, minus the $2,000 green car rebate, the Civic Hybrid proved to be enticing. But 8.85 percent is almost 3 percent more than the interest on a regular Civic DX... and 5 to 7 percent more than what some manufacturers offer. Like I said, ridiculous!
For consumers, there are not many solutions: in order to help improve the air quality and reduce our dependence on oil, we must cut our mileage, buy smaller cars or choose diesel-powered or hybrid-electric vehicles. If you have already considered purchasing a hybrid, like I did, chances are you have discovered a harsh reality: interest rates for buying or leasing this type of vehicle continue to be high.
Enough is enough!
I decided to make my own little research. My intention was not to blast hybrid vehicles -- I'm looking to buy one myself. Well, actually, I was looking to buy one until I realized that interest rates range from 5.9 to 11 percent. That's right! You can pay as much as 11 percent interest! Sure, 5.9 percent is not that bad; it's about the same rate as some manufacturers offer when you purchase or lease a regular model like a Nissan Altima, a Toyota Camry or a Honda Civic, just to name a few. But at 11 percent, forget about it! How can governments and car companies still be shocked that consumers are minimally interested in buying Ford Escape Hybrids or the like?
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$10,000 in interest
Do you have the slightest idea as to what kind of money this might represent? Let's say you're buying an Escape Hybrid (about $39,000 including taxes) and you agree to make a $4,000 down payment. The remaining $35,000 will be financed over 60 months at an 11-percent rate. Provided that these conditions don't change, you will have to pay approximately $10,000 in interest. In the end, your vehicle will have cost you nearly $50,000 -- obviously taking your down payment into account. True, you can apply for a $2,000 rebate from Transport Canada's ecoAUTO program... and drive through a forest without scaring any deer. But still, would you really want to pay that kind of money? Me neither.
In general, interest rates for the financing on hybrid vehicles hovers around 6.8-6.9 percent. Aside from the Escape Hybrid, there's another model that carries a dissuasive interest rate: the Honda Civic Hybrid. Indeed, the company charges 7.75 percent interest to Civic buyers and -- get this -- 8.85 percent to leasers. Personally, this is the vehicle I was considering, until I learned about the ridiculous interest rate. At $26,250, minus the $2,000 green car rebate, the Civic Hybrid proved to be enticing. But 8.85 percent is almost 3 percent more than the interest on a regular Civic DX... and 5 to 7 percent more than what some manufacturers offer. Like I said, ridiculous!