When you're out car-shopping, there are several ways to go green. All of them can save you money.
Electric cars and gasoline/electric hybrids are both green alternatives that will reduce your fuel costs as calculated on a cost per mile basis.
According to information provided by the U.S. Department of Energy, an ordinary gas-powered car with a gas mileage rating of 22 miles per gallon, costs about 15.9 cents per mile in fuel when gasoline is priced at $3.50 per gallon. A hybrid electric vehicle, on the other hand, which gets 45 MPG costs just 7.8 cents per mile in fuel costs. If you drive 12,000 miles per year, that works out to a savings of more than $970 per year over the life of the car.
A car that uses only electricity for its power will save you even more in fuel costs. The Dept. of Energy says the average residential rate for one kWh of electricity is 11.9 cents. While some ultra modern electric vehicles can get as many as six miles from one kWh of electricity, let's use a more conservative figure of 3 miles per kWh. That works out to just 3.3 cents per mile in fuel costs for a typical all electric vehicle. Compared to our 22MPG gas powered car, that's an annual savings of more than $1500 per year if you drive just 12,000 per year.
Of course, these modern alternative fuel cars often come with a higher price tag, and while a couple of years of use more than pays that back in fuel savings, it can be hard on the wallet for cash-strapped families, which brings us to the third way to go green when buying a car. About half of all the carbon emissions associated with a car over its lifetime occur during its manufacture. That means that by buying a good used vehicle instead of a new car, you are actually going green by eliminating or delaying the need for one more car to be built. While you'll be paying more for fuel for a gas-fueled used vehicle, you'll save thousands up-front over the cost of a new car, especially a top of the line hybrid or all electric vehicle.