Hybrid Cars: It Finally Makes Economic Sense to Buy One

Almost.

According to a study by Edmunds.com cited in the WSJ, at current fuel prices, it would take 3.5 years for the costs of owning a Toyota (TM) Prius, the most fuel-efficient car out there, to equal that of owning the similar but gas-guzzling Camry.

That's on the assumption that gas prices stay at around $4 and that you drive 15,000 miles per year. I no longer own a car, but back when I did, I typically put 20,000 miles-per-year on it in driving from Long Island to Manhattan. For someone like my old self, it would take 2.5 years for the costs to match up. (If gas prices go up to $5 per gallon and you drive 15,000, it would take 2.7 years.)

And when you factor in a potential 5 to 10 percent insurance discount, hybrids start to make even more sense.

Here's the study from Edmunds. You can play around with the numbers yourself to tailor the calculations to your driving habits.

Comments

[jcrash]

If you read their website, they point out that the payback period has increased recently because as gas prices have spiked, people have freaked out and started paying above sticked for hybrids. Meanwhile, non-hybrids have steep discounts. This combination makes the payback period go up, even as gas prices go up.

A one year old sentra will run you about $11000 or less and get 30mpg or so. The prius may get 42 mpg or better, but with a 6 month waiting list and paying close to $30,000 you won't ever make your money back.

I want a Hybrid as much as the next guy, but if you are really basing your purchase on the $$ involved, buy a used economy car and you will be better off.

[foxielady]

when i told my dealer that i wanted a honda civic hybrid,he said that if we(my husband and i) didn't drive more than 15 thousand miles a year, it wasn't worth spending that much more money than buying a regular civic and using the extra money on gas.....

[BioInvestor]

I agree that the big assumption is gas prices staying at $4 or rising even further.

It would be interesting to get a breakdown of hybrid car sales by region--for example, gas is always more expensive in California; some parts of LA county have gas stations quoting a price close to $5 a gallon. It would be interesting to see if hybrid sales are brisker in regions where gasoline is more expensive.

[Retriever5280]

Gas-guzzling Camry? Whoa....My non-hybrid Camry is getting 30 mpg. Try the gas-guzzling SUVs at 6 mpg.

[ChrisB]

It's not just the miles but the type of miles that count. All of my miles are highway miles and the average MPH for me is lower than for a city driver so it makes less sense for someone like me.

[notsosmart]

lets not forget the battery situation & that the whole pod has to be replaced.would you buy a 5 year old prius?

[User 201592]

Prius Facts
21,500 Base MSRP... not 30K
Hybrid-related components for hybrid vehicles are covered for 8 years/100,000 miles. The HV battery may have longer coverage under emissions warranty. Refer to applicable Owner's Warranty Information booklet for details.

[secmaven]

If every car in the US were a Prius this country would not have a balance of payments deficit. The present deficit creation level long term is unsustainable. We are already maxed out on using conventional military tactics to force our money on the rest of the world. The nuclear "option" is about all that remains. I propose that Congress mandate a phased in LNG for all diesel applications and hybrid power plants for all gasoline applications. This is a far better future for our children than using nukes to maintain the status quo as Dubyah has already suggested.

[surgcare]

I love mathmatics but these numbers fit the classical analogy of " statistics are for losers " . The fact is electric cars are going to cost more than gas run cars , why . Electric cars energy is not for free . You still have to come home at night and plug your car into the wall socket to charge your car ( It will take the same amount of equivalent energy in electricity to drive your car 60 miles/ hour for 4hrs or however long you drive your car ) .Where does the electicity to run your car come from, the utility company which burns , you guessed it , oil , coal , nuclear ,natural gas or windmills (not in my back yard ) or solar which is woefully inadequate . The electricity you get from the power co will be more expensive because its inefficient as there is a significant lose of energy in transferring energy from the local power co to your house or car as opposed to putting fuel directly into your car as in gasoline .Also as an added burden on ,or added demand , from utility co come about ,these companies will have to expand infrastructure to accomadate the new burden of not only providing power for homes but your cars as well . This infrastructure already exist in the form of the current gas station . Therefore the utility companies will be charging significantly more to provide energy not only for your home but your cars as well .As for me I'll keep my gas guzzing car , drive to the local gas station just a few blocks away and pay less for gas the you people paying to fill your gas with electricity from power co a long way off . Of course I won't be able to do anything about the rise in power or electricity from the utility co .

[galewhitaker]

Everytime you pay for a tank of gasoline part of the money goes to the princes in Saudi Arabia who send some of the money to the madrasas in Packistan. They use the money train up some more Taliban warriors who sneak into Afganistan and kill American soldiers. How do you calculate the cost of dead and wonded Americans?

[Kunst]

"If every car in the US were a Prius this country would not have a balance of payments deficit. "

Uh, isn't the Prius made in Japan?

[AmesTiedeman]

This is the future.