Is A Hybrid Worth It?
- By Jake Homes, CarandDriver.com
Car buyers hoping to economize by switching to a hybrid car will save the most money if they buy a Toyota Camry hybrid, Chevrolet Malibu hybrid or Nissan Altima hybrid, according to a study by NADAguides.com.
As gas prices continue to rise around the country, hybrid cars are attracting more and more drivers who want to save money on fuel. But many consumers looking to buy a more efficient car only compare the EPA fuel economy and don’t factor in the increased price of the hybrid model, according to Tara Baukus Mello, NADAguides.com lead market analyst.
Even though they use less fuel to go down the road, hybrid cars cost more upfront and, depending on how many kilometers drivers cover, won’t necessarily save money. Baukus Mello and NADAguides.com studied the prices and potential fuel savings of hybrids on sale in the U.S. to determine their break-even point—how far the cars must be driven before savings in fuel costs outweigh the initial outlay for a hybrid.
The study used EPA combined fuel economy ratings for 2008 model year hybrid cars and their gasoline-engine counterparts to evaluate fuel savings. Coupled to the manufacturer suggested retail prices for each vehicle, NADAguides.com found varied results. For gas prices, the study used the current cost of a gallon in Los Angeles, $4.59 ($1.16 per litre).
The Toyota Camry, Chevrolet Malibu, Nissan Altima, Toyota Prius and Honda Civic hybrids all offer enough fuel savings for drivers to recoup their price premiums after fewer than 75,000 miles (120,700 km) of driving—or less than five years for an average driver. But even among these five models are some surprises.
Hybrids such as the Chevy Tahoe and GMC Yukon take longer to break even than the five cars listed above, and are thus not mentioned in detail below.
The Popular Kids are Costly
Since its introduction to the U.S. in 2000 as a 2001 model, the Toyota Prius has been the volume leader with over half a million models sold stateside. Discussion on fuel economy and high-mileage hybrid cars always seems to center around the quirky Prius, yet it may not be the best hybrid for buyers looking to minimize overall vehicle costs.
Even though it achieves a combined EPA rating of 46 mpg (5.1 L/100km), the Prius starts at $22,160 ($27,600 in Canada)—thousands more than a comparable Toyota Camry LE rated at a combined 25 mpg (9.4 L/100km). Baukus Mello’s study found that a driver paying $1.16 per litre for gasoline would need to drive almost 67,000 km before they saved money. For most drivers, that’s three to four years of vehicle ownership before the Prius delivers cost savings.
The Honda Civic hybrid delivers an even worse return on investment. Though the hybrid Civic is far more fuel-efficient than its gasoline brethren, a $4000 premium for the hybrid is hard to recoup. At $1.16 a litre, buyers need to accumulate 92,000 kilometers in order to save money with a Civic hybrid rather than an automatic LX model.
Still, Baukus Mello said she believes many consumers want to drive hybrid cars regardless of overall cost savings. Though the highly-praised Prius isn’t really going to save money for drivers, it might fulfill a different need: ecological pride.
“You’re doing it because you have an interest in fuel economy,” Baukus Mello said.
Surprising Payback from Newcomers
Compared with the Prius and Civic, newly-introduced hybrid cars should be a far better economic deal for drivers. The Nissan Altima hybrid, at 34 combined mpg (6.9 L/100km), saves money over an Altima 2.5S after just 60,477 km of driving.
GM’s foray into the world of hybrids should also pay off for drivers of the new Chevrolet Malibu hybrid. Though it scores just 2 mpg better on the EPA’s combined mileage cycle than a Malibu LT (with a four-cylinder engine and four-speed automatic), Baukus Mello predicts drivers need drive just 51,990 kilometers at $4.59 per gallon ($1.16 per litre) to save money over driving a Malibu LT.
But most impressive is the Toyota Camry hybrid, introduced as a 2007 model. The Camry hybrid employs a similar Hybrid Synergy Drive to the one found in a Prius, and returns a miserly 34 combined mpg (6.9 L/100km). Moreover, the hybrid model’s price premium over a Camry XLE automatic is so small that buyers should begin saving money after driving just 18,292 miles (29,437 km) at $4.59 a gallon ($1.16 per litre).
Your Mileage Will Vary
It’s no secret that cars don’t always return the fuel economy promised. So while the figures from NADAguides.com provide a rough estimate of return-on-investment, Baukus Mello said car buyers need to think carefully before picking a hybrid.
To determine whether a hybrid will actually save money, Baukus Mello said drivers need to consider several factors: the fuel economy their current vehicle returns versus that of a hybrid, the number of miles they drive, and the price premium for a hybrid vehicle.
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