The revolution has begun. New, gas-saving vehicles are gaining a foothold in the North American market, and most of the big auto manufacturers are lining up to show consumers their expanded range of environmentally friendly (and gas-saving) cars, trucks and SUVs.
Predictions are that oil prices will keep rising, so moving to a greener, less gas-dependent vehicle is the way of the present. But what’s the real bottom line? Will savings at the gas pump be enough to counter the other costs that come with these new, high-tech rides?
Chartered Accountant Perry Lo is founder and president of Canaan Transport Group Inc. in Mississauga. His company offers a full range of transportation and related services, including freight forwarding, import/export transportation and business services. Here, he shares seven tips to help you decide if now’s the time for your transportation to “go green”.
1.
Know the options - Hybrids are the big news in energy efficiency, but depending on your needs, there may be other green machines to consider. For example, Nissan is promoting a fully electric car that will take you a hundred miles between charges, and rumour has it that by 2012, Ford will be offering its popular Fusion as a battery-electric, plug-in hybrid, hybrid, or fuel-efficient sedan.
2.
Consider alternative fuels - Trucks and vans that use propane, natural gas, ethanol, methanol, or other manufactured gases can be less expensive to operate, and less harmful to the planet, too.
3.
Look beyond the sticker price - Each individual needs to look at their personal “business case”, Lo says, and calculate their own costs and benefits when it comes to green vehicles. Hybrids, particularly, can run thousands more than comparable models with traditional engines, but prices will almost certainly drop as the technology matures. Meanwhile, weigh that higher sticker price against gas savings over the life of the vehicle and some of the other incentives to buy them.
4.
Shop around for insurance - Some Canadian companies offer as much as a 10-per-cent discount to hybrid drivers, who tend to be older, more experienced and generally lower risk. More insurers are likely to get on the bandwagon as hybrids become more popular and the industry starts accumulating meaningful actuarial information about those who drive them.
5.
Take advantage of government incentives and rebates - Many provincial governments, including Ontario, offer at least some rebate of the 8-per-cent retail sales tax for dual-powered vehicles or those that run on alternative fuels. Ontario also offers “green” license plates, so that even lone occupants of these cars can cruise the high-occupancy-vehicle (HOV) lanes and use public recharging facilities at GO stations and other government parking lots.
6.
Factor in warranties and maintenance - Replacing the hard-working batteries in hybrids after the warranty expires can be pricey. But Toyota’s battery pack contains 38 modules, each of which can be replaced separately at a cost of about $140. Further, it now offers 160,000-km warranty coverage on Prius and Highlander hybrid-related components, and the cost of regular preventative maintenance seems to be comparable to gas-powered equivalents.
7.
Sometimes, it’s not all about the money - All things considered, Lo says it can be important sometimes for both individuals and companies to feel they’re doing the right thing when it comes to the environment. In business, the positive promotional aspects of having a green fleet of vehicles can win points with customers and consumers. On a personal level, it may come down to making the green choice now for ourselves, so that governments and legislators don’t end up doing it for us.
Brought to you by the Institute of Chartered Accountants of Ontario
