Comparing a gasoline engine car to a hybrid vehicle. There are a number of cars on the market that are available in both styles, so it is easier to make an apples-to-apples comparison. For example, you can buy a Toyota Camry or a Honda Accord in a gasoline or hybrid model. There are lots of places to go for pricing, but I've found that kbb.com seems to be pretty easy.

To start, find the price for a similarly equipped 2019 gasoline and hybrid vehicle in the same make and model. (Please be sure that it's the same car - don't compare a Honda to a Hyundai or an Accord to a Civic.) In almost every case, the hybrid car is going to be more. Now, take note of the gas mileage for each of the two vehicles. In most cases, the mileage is provided both for city and highway. You may choose either, but be consistent for both. We are going to assume that both vehicles will last 10 years and have no residual value. Now you're ready to start your analysis.

1. Please describe the two vehicles that you are comparing - make, model, etc. What is the price of each? (Be sure that the cars are both made by the same manufacturer, such as Ford, and that they are the same model, such as both Fusions. As much as possible, try to choose the same engine power and options packages.) Finally, be sure to provide a citation about where you found this information.

2. What is the mileage rating on each vehicle? As I mention above, you can use city or highway, depending upon the assumption that you think that is most relevant for you.

3. If you were to own a vehicle, how many miles do you think that you'd drive in an average year?

4. Assuming that the average cost of gasoline over the next 10 years is $3.00 per gallon, what would your average fuel cost be each year from owning a hybrid?

5. What is the present value of the fuel costs if you buy a hybrid vehicle? Similarly, what is the present value of the fuel costs if you buy a traditional gasoline engine vehicle? Assume a relevant rate of 6%. Given the differences in purchase price and fuel costs, does it make sense for you to buy a hybrid? (Please show how you computed this.)

6. Are there other factors that should be considered in your purchase decision?