Gas/electric hybrid vehicles present a dilema for many car shoppers. They unquestionably, deliver the best fuel economy in their class, but they're also priced substantially higher than similar conventional cars. So it has been difficult to know whether a hybrid will save you money over the long haul. I asked Jody Victorto give us some insight into this.
Jody Victor: According to Consumer Reports latest analysis of owner costs, you can save more than $4,000 over five years by choosing a hybrid over a similar gasoline-powered vehicle.
Six of the 12 affordable hybrids they looked at can save you from about $500 to $4,250, even without tax credits, and pay back their price premium after only one year. They are the Toyota Prius and Hybrid versions of the Chevrolet Malibu and Tahoe, Ford Escape, Saturn Vue and Toyota Camry. For several, you can save even more by taking advantage of federal tax credits.
The Honda Civic, Nissan Altima and Saturn Aura Hybrids will cost you a little more than their conventional counterparts - from $250 to $750 over five years - but some consumers might find it worthwhile to drive a more environmentally friendly car. With federal tax incentives, all three come out ahead after just one year.
It would take many years for most hybrids to pay back their premium price just on fuel savings. But fuel costs are only a relatively small part - 25 percent - of the overall owner costs in the first five years. Other factors include depreciation, insurance, interest on financing, maintenance and repairs, and slaes tax.
So, with all this in mind it is safe to say, you can recoup your investment and more than save on fuel costs if you buy a hybrid vehicle. The trick is to compare how much you drive in a month or year with the monthly costs of the vehicle.
Thanks, Jody! We'll be sure to check it out.