Hybrids Taking Fewer Years to Pay Off

The Department of Energy recently announced that it expects gas prices to peak sometime in early June at a national average of $3.73 per gallon. This would be good news — at least drivers could see a light at the end of the tunnel — were it not May 12 with the national average already at $3.71 per gallon.

Given that the price of gas has risen a penny a day (35 cents total) over the past month, a peak of $3.73 sounds, shall we say, optimistic?

As the cost of fuel increases, the benefits of buying a hybrid vehicle become more immediate. It used to take as long as five years for a hybrid to pay for itself in fuel savings, but with the price of gas spiking, that time has been cut drastically. According to USA Today, versus similarly equipped gasoline models the higher cost of a Toyota Prius would now pay for itself in 2.6 years, while a Toyota Camry Hybrid would earn back the extra dough in just 1.7.

Other hybrids, like the Nissan Altima, Mercury Mariner and GMC Yukon, can take between three and five years to recoup their higher cost, while the extravagant Lexus LS 600h, with a sticker price just north of $100,000, would take 102 years.

Hybrids Recoup Higher Cost in Less Time (USA Today)

Comments

[Tony]

All these calculations can also depend on area where one lives. In city cost will be recovere faster then in subs because in city those hybrids work more efficiently. But in subs where most mileage is HWY the difference is less. So this is case-by-case.

[Joe Wiesenfelder]

Hold the phone, everyone. These calcs appear to be based on "comparably equipped" cars, which is something we're getting away from at Cars.com. Given that the economy is bad, it's not exactly a great time for people to run out and buy a new car -- even if their SUV is burning up their paychecks. When you compare the hybrid to the most efficient and affordable non-hybrid version, the initial price difference is often considerably greater. One exception is the Prius, which comes only as a hybrid and is both the least expensive and most efficient. Hard to beat that.

[Dave T.]

we have our bang for the buck list updated folks:
http://www.cars.com/go/advice/Story.jsp?section=fuel&story=fuelLifetime&subject=fuelList

will blog about it soon.

[Amuro Ray]

Here's what I don't get...and possibly an error on the original story post?

"while a Toyota Camry Hybrid would earn back the extra dough in just 1.7.

Other hybrids, like the Nissan Altima...five years to recoup their higher cost"

Last check using the link D.T. has supplied, based price diff b/n Toyota & Nissan is only $280, and the "total" cost is a mere $55 diff. 3 to 5 years to recoup that $55? That'll just be a buck 50 over the Toyota per month! I do think that Nissan has more std equipment than the Toyota if I'm not mistaken...but that's not the point :)

Anyhow, I would say that you probably take 1.702 year to recoup for the Nissan then... (I just made up that number, but u got my drift)

[J]

With the way I drive my conventional engine powered compact, it takes way longer to cover the cost of the extra dough I paid up front, plus the interest, and I have to skip out some luxury items? Why in the world are people so hyped up about hybrids anyway? They are not getting much more if they keep on the way that they drive!

[LM]

And, if you buy the Nissan right now you get that nice fat tax credit. The Toyota credit expired.

[Dave T.]

the altima s similarly equipped is $4,000 less than the hybrid version. I believe those are the numbers they are working with.

[ziggy]

Save $4K over a 5 year period and buy a Civic that gets 36mpg instead of the Prius that gets 45mpg. Why pay almost $6K more for a vehicle to see only $2k savings over a 5 year period. I just don't get it and some hybrids cost more than the Prius.

1. Guys, when talking about savings with hybrids... Don't forget, that the only reason there are any tax cradits on hybrids is because they save ecology and not the money. When hybrids will save money the government will take away tax credits.

2. Nissan Altima compare to Nissan Altima Hybrid. The difference is about $6K, not $4K. It is because plain Altima can be purchased for invoice price while Hybrid will require some waiting line.

3. Prius is proven to make way more then 45Mpg. Actually, for the small city ride it can go as high as 70mpg. One needs to understand where it will be driven and how to estimate the economy it can give. If you drive HWY mostly, you probably not going to get even 45mpg in this car, unless you go 55mph

[Paul]

Hybrids are all good and dandy until you realize about the $5000 bill for a new battery you have to replace every couple of years. Yeah so much from saving on gas you end up paying on the other end. Also you forget that you can only get a hybrid serviced at that manufacture not anywhere else. So they can charge what ever they want and you have no choice but pay it. People forget about this stuff.

Paul, you confusing people here.
Hybrids battery is protected by 8 year warranty.

[Paul]

I'm well aware of warranty. I'm talking about after it runs out. There is no information on the built to last factor. Everything is about now. In ten years how good is that hybrid going to hold up. No info on that... I'm also not talking about Toyota I'm talking about in general hybrids.

[Tony]

Paul,
To the certain degree you are right. But if you read some articles here within last week or so... There are few articles on tests of hybrids. They simulated 10 year use of hybrids and results came out just fine. This is not perfect test but it is better then nothing.
Also, by the time your warranty will expire in 8 years the production of hybrids and its parts (batteries) will grow so much that the price of a single unit will drop. There will be aftermarket manufacturers producing battery packs and competition will be good and drive the price down.

[Bob Wilson]

Actually some of us are discovering we can refurbish hybrid batteries and bring them back to like new capacity. We still have testing going on but it is work very nicely.

[Paul]

Alright cool thanks for the info Tony and Bob. Just wanted to mention that side of the issue thats all.