Tuesday, June 21, 2011

Does buying a hybrid save you money?


With gas prices near $4 a gallon again, it’s time to crunch the numbers to see if buying a hybrid will truly save you money.  For comparison’s sake, we’ll look at two different hybrids and their sister cars.  The Toyota Prius is the top hybrid in terms of recognition and sales so we’ll choose it.  Now finding its sister car is a bit tougher.  Based on passenger volume the Toyota Matrix would be closest.  However, if fuel efficiency is more important, the Corolla is the one to choose.  So we’ll compare both.  We’ll also check the Ford Fusion since it has both a regular and hybrid model.  For pricing, we’ll use the TMV value at www.Edmunds.com and the average price paid at www.TrueCar.com.

Toyota Prius (3)                                                Toyota Matrix S                                Savings
Edmunds - $25,560                          Edmunds - $21,895          $4,065
TrueCar - $26,340                             TrueCar - $21,874
Average - $25,950                            Average - $21,885

Toyota Prius (3)                                                Toyota Corolla SE             Savings
Edmunds - $25,560                          Edmunds - $19,736          $6,175
TrueCar - $26,340                             TrueCar - $19,814
Average - $25,950                            Average - $19,775

Ford Fusion Hybrid                          Ford Fusion SE                   Savings
Edmunds - $29,118                          Edmunds - $22,956          $6,693
TrueCar - $30,063                             TrueCar - $22,840
Average - $29,591                            Average - $22,898

All cars were comparably equipped with cloth seats, CD, sunroof, automatic, etc.

The next piece of the puzzle is the cost of gas per year.  We’ll use the combined cycle numbers for fuel efficiency, an estimated 15,000 per year and the price of gas at $4 a gallon.


Combined MPG
Miles per year
Gallons per year
Cost per year
Extra cost per year
Toyota Prius (3)
50
15,000
300
$1,200
n/a
Toyota Matrix S
22
15,000
682
$2,727
$1,527
Toyota Corolla LE
29
15,000
517
$2,069
$869
Ford Fusion Hybrid
39
15,000
385
$1,538
n/a
Ford Fusion SE
26
15,000
577
$2,308
$769

The numbers are all crunched and now it’s time for the verdict.  How long will it take for you to recuperate the extra cost of the hybrid with its gas savings?

Prius vs. Matrix
It will take you 2 years and 8 months until you break even.  After that, it’s money in your pocket

Prius vs. Corolla
This one will take a little longer, 7 years and 2 months until you reach the breakeven point.

Fusion Hybrid vs. Fusion
This is the longest span by far, over 8 years and 8 months.

If gas goes to $5 per gallon as some have speculated, the repayment times are shortened (2 years & 2 months, 5 years & 7 months, and 6 years & 11 months, respectively). 

Based on these numbers, if you plan to keep your car for over the repayment period, it makes sense to buy a hybrid.  If you tend to switch cars more frequently, then stick with the regular gas version.  Whatever you decide to do, be sure to analyze all the numbers and make sure you’re spending your money wisely.

So, looking at these number, are you surprised or did it confirm what you’ve suspected?  Let us know your thoughts. 

No comments:

Post a Comment