Is it Worth the Money to Buy a Hybrid Car

Often times I hear people say that they are thinking about getting a Toyota Prius to cut down on gasoline costs. This sentiment gets particularly strong when there is a spike in gas prices. The fact is that hybrid cars, of which the Prius is the best seller, do not save you money long term.

Yes, hybrid cars do get better gas mileage than their internal combustion engine counterparts. However, if you are looking to save money, the best thing you can do is keep driving whatever you are currently driving. The cost to buy a new car (or even a used one) will take years to recoup in gasoline costs.

Let's take a look at a comparison between the Toyota Camry. The 2011 base Camry starts at just under $19,820 and is rated to get 22 mpg in the city and 33 on the highway so we'll say that's 27 on average. The hybrid version of the Camry starts at over $26,000 and gets on average 33 mpg. The Prius, while not quite as powerful and not as luxurious as a Camry but still comparable, starts at $23,050 and averages around 48 mpg.

Now let's assume you drive the car a typical 15,000 miles per year with gasoline costs of $3.50 per gallon. Here's what your yearly gasoline bill would be: $1945 for the Camry, $1590 for the Camry Hybrid, and $1094 for the Prius. So, with a purchase price difference of $3,200 and a gasoline bill difference of $800 per year, it would take 4 years to come out even driving a Prius over a Camry. That's not bad and it is well worth it, if you are ready to buy a new car anyway.

Most hybrids don't get the gas mileage that a Prius gets. The Honda Civic starts at $15,805 and averages 30 mpg while its hybrid version, which looks exactly like the regular Civic, starts at $23,950 and averages 41 mpg. For that big difference in base price and only 11 mpg more, it would take at least a decade to recoup the added cost of the car.

Don't be fooled into thinking that getting a hybrid will immediately turn into savings in the bank account. It won't. People buy hybrids as a status symbol and because they think they are doing something more environmentally friendly. If your goal is to save money, don't buy a hybrid. Keep driving your clunker or buy something that sells for around $12,000 brand new that also gets good mileage like a Toyota Yaris or Kia Rio or Honda Fit.