Saturday, December 17, 2011

Nissan's Ultimate Hybrid

by Thane Peterson

image of review item Editor's Rating: star rating

The Good: Bargain price, fuel economy, quickness

The Bad: Small trunk, limited availability

The Bottom Line: A nearly flawless midsize hybrid at a bargain price

Reader Reviews

U.S. sales of hybrid vehicles are set to soar by 35% this year, to 345,000 units, according to J.D. Power & Associates. That's largely because of the wildly popular yet small and quirky Toyota Prius, which will account for half of the market.

However, sales of more mainstream hybrids are starting to take off, too. For instance, if you're shopping for a family sedan, going with a hybrid is a no-brainer for many buyers these days.

General Motors (GM), Toyota (TM), and Nissan (NSANY) all now have excellent hybrid-powered, midsize sedans: the Saturn Aura for those on a budget, the Toyota Camry if you have a little extra cash to spend, and the 2007 Nissan Altima, which falls somewhere in the middle. (Honda (HMC) is dropping the weak-selling Accord Hybrid but plans to come out with a new, dedicated hybrid in '09.)

The Aura is different from the others because it's only a "mild" hybrid that isn't quite as fuel-efficient. The Camry and Altima are "full" hybrids that can operate on their electric motors alone at times. I gave both of them our top five-star rating (and the Aura hybrid a 4½-star rating). But when you factor in the Altima's low price and the $2,350 federal tax credit many consumers will earn for buying one, it's a far better bargain than the Camry Hybrid right now.

There's one very big caveat about the Altima, however. For now, at least, Nissan is only selling its hybrid in eight states with the toughest air-pollution standards: California, New York, New Jersey, Massachusetts, Rhode Island, Connecticut, Maine, and Vermont. Nissan dealers nationwide are prepared to service the hybrid, so you can buy the car in those states and take it home to other states. "We're new to the segment and thought we could do best in those states," a spokesman says. "Whether we expand beyond those states is up in the air."

It's well-worth going to some trouble to get your hands on an Altima Hybrid. Like the hot-selling conventional Altima sedan and coupe, it's a nice-looking car?with a curved roofline, a distinctive grille, tough-looking dual chrome tailpipes, and a stylish optional spoiler on the lip of the rear deck.

In financial terms, it's a real bargain. The Altima Hybrid starts out at $25,615, or $23,265 factoring in the federal tax break. Many states, cities, and companies offer incentives for buying a hybrid, too (see BusinessWeek.com, 6/6/06, "Harnessing Hybrid Tax Credits").

By comparison, a conventionally powered '07 Altima sedan with a four-cylinder engine and a continuously variable automatic transmission starts at $20,925. Comparably equipped, Nissan's hot new '08 Altima Coupe starts at $21,615. So, taking into account the tax credit, the price difference between a conventional Altima and a hybrid is less than $2,500, and maybe a lot less depending on which options you choose.

Not surprisingly, the '07 Altima Hybrid?which is rated at 42 mpg in the city and 36 on the highway?will save you quite a bit of money on gas over the years (more on how much later). I pushed my test Altima Hybrid quite hard and didn't make any attempt to maximize mileage. Yet, in 247 miles of mixed driving I still got 35.7 mpg. A driver doing a lot of in-town driving and trying to get good mileage would probably get upwards of 40 mpg.


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