Among Hybrids, the Toyota Camry and Chevrolet Malibu Offer the Best Overall Value - Car News
Surprise! Not all hybrid cars cut costs equally.
BY JAKE HOLMES July 2008
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=92t 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 miles drivers cover, won=92t 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=97how 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 (minus any tax breaks for hybrids) 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. While that=92s higher than the current national average, it might not be too long before all of us are paying those prices.
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 of driving=97 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 (about 75,000 miles), 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, the Prius starts at $22,160=97thousands more than a comparable Toyota Camry LE rated at a combined 25 mpg. Baukus Mello=92s study found that a driver paying $4.59 per gallon for gasoline would need to drive 41,626 miles before they saved money. That distance rises to over 47,000 miles for buyers paying the current national average of $4.11 per gallon. For most drivers, that=92s 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=97even when factoring in a $525 tax break. At $4.59 a gallon, buyers need to accumulate 57,216 miles 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=92t really going to save money for drivers, it might fulfill a different need: ecological pride.
=93You=92re doing it because you have an interest in fuel economy,=94 Bauku= s Mello said.