Are Hybrids Worth The Extra Money?

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By By Herb Weisbaum

Summary

The cars will save you money at the pump and are much better for the environment, but in many cases the savings is offset by the extra cost of the car.

Story Published: Mar 8, 2006 at 4:11 PM PDT

Story Updated: Aug 31, 2006 at 2:14 AM PDT

Are Hybrids Worth The Extra Money?
SEATTLE - Should we get a hybrid? That's the question a lot of car buyers will be asking this year.

Buyers have been clamoring for hybrids and manufacturers are racing to fill the demand for these fuel-efficient vehicles. A number of top-rated hybrid cars and SUVs are now on the market; more are on the way.

There are several major reasons to buy a hybrid. The combination gasoline/electric engine delivers more miles per gallon and pollutes less. But they cost more than the same model with a conventional engine. On the other hand, you get a tax credit for buying a qualified hybrid.

For instance, the new Honda Civic Hybrid, which based on Consumer Reports testing gets 37 miles per gallon overall. That's about 9 miles a gallon more than the gas-only Civic XE with an automatic transmission. But the hybrid model costs nearly $4,000 more.

Which may leave you wondering: when it comes to the money-side of the equation, will the hybrid save me money over the long-run or would it be cheaper to buy the same model with a gasoline-powered engine?

For its April Auto Issue, Consumer Reports looked at 6 vehicles and compared the costs and savings of the hybrid version to the gas-only version during the first 5 years and 75,000 miles on the road.

(EDITOR'S NOTE: Consumer Reports just re-analyzed its figures, which are now slightly different from what is in the printed publication and also from the results I reported to you earlier in the week. Here are the new results.

The editors considered the purchase price of the vehicle, the federal tax credit for the hybrid versions, plus the cost of fuel, insurance, financing and maintenance. They also factored in the estimated resale price; what those vehicles would be worth at the end of the five-year period.

After doing the math, the magazine found that only two of the six vehicles analyzed would save you money at the end of 5 years/75,000 miles and it wasn't all that much.

2006 Honda Civic: The total cost of owning the hybrid Civic would be $28,738. The total cost of owning the non-hybrid Civic EX: $29,055. So the hybrid Civic would generate a $317 savings over its first 5-years on the road.

2006 Toyota Prius: The total cost of owning this hybrid would be $27,324. The total cost for owning the 2006 Toyota Corolla LE, the gasoline-powered equivalent, would be $27,730. So, the Prius would save you about $406.

In four other cases, Consumer Reports found that the hybrid version would cost you anywhere from $1,900 to $5,500 more to operate during the first 5 years or 75,000 miles down the road.

SO WHY BUY A HYBRID?

There are still good reasons to choose a hybrid. They produce fewer emissions, so they're good for the environment. And they perform well. For instance, Consumer Reports says the hybrid version of the Honda Accord "delivers quicker acceleration." Hybrids are also very reliable; people who own them love them.

WHAT ABOUT ALL THOSE BATTERIES IN A HYBRID VEHICLE?

The manufacturers say they are very reliable. They come with an 8-year or 80,000 mile warranty (10 years or 100,000 miles in California). Some, they say, have now gone more than 300,000 miles.

Like any car battery, they're considered hazardous waste and must disposed of properly. That means they need to be sent to a recycling facility, where the chemical agents are neutralized and various materials that can be reused are sorted out.

OTHER WAYS TO USE USE LESS GAS

The editors at Consumer Reports point out that there's another way to cut your fuel costs without buying a hybrid - figure out what type of vehicle you want, then find one in that class that gets good fuel economy.

For example if you want a three-row SUV, "you can save about $800 a year by choosing a 17-mpg Honda Pilot instead of a 12-mpg V8 Dodge Durango," they say.

For More Information:

The Dollars & Sense of Hybrids

Consumer Reports Fuel Savings Comparison Chart.

Do the math: Consumer Reports owns up