When automakers first began offering hybrid models at the turn of the century, it was hard to validate the car’s higher purchase price — when compared to gasoline-only counterparts — against the relatively low cost of gas. However, as gas prices continue to rise, the case for purchasing a hybrid vehicle is becoming stronger.
With national gas prices hovering around $3.70, the time it takes for a hybrid to pay for itself has been drastically reduced. Just a few years ago, the higher sticker price of a hybrid took five or more years to be offset by fuel savings. But with gas prices at record highs, some hybrid will pay for themselves in just two or three years, according to USA Today.
Based on driving 15,000 miles a year, Edmunds figure that the $889 premium the hybrid Toyota Camry commands over a comparably equipped gasoline Camry will only take 1.7 years to be offset by fuel savings.
And as gas prices continue to climb, the payoff only becomes more attractive. When fuel prices averaged $3.61 earlier this month, it would have taken a Toyota Prius buyer 3.5 years to recoup the price difference from not purchasing a similarly equipped Camry. When gas prices rose to $3.67 per gallon last week, that figure fell to 2.6 years. Today’s fuel average is $3.71, meaning the time to break even has fallen even further.
On the flip side of the coin, high fuel prices are increasing demand for hybrid vehicles, which is ultimately making them more expensive at the dealership — offsetting some of the cost savings. But even so, the break even time is far less than even a few months ago.
But not all hybrids are equally attractive. The Toyota Highlander Hybrid SUV will take about 12.7 years to break even while the Saturn Aura Green Line will take 24.3 years. However, both of those hybrids are far more cost-effective than the Lexus LS 600h L, owning which would take 102.6 years to break even.
