With high gas prices, hybrid cars are a more affordable option than ever in terms of gas mileage, but only a handful of hybrid cars make solid financial sense, and only for some consumers, according to a new study by NADAguides.com, a vehicle pricing and information website.
Using current gas prices for ten major metropolitan areas, the company studied the number of miles needed to recoup the extra cost of buying a hybrid car over its gasoline-only counterpart. "We recognize that every driver's situation is different and that some people will achieve a return on the extra investment of a hybrid car much faster than others," said Tara Baukus Mello, senior writer and lead market analyst for NADAguides.com.
The study showed, for example, that a driver in Los Angeles, the city with the highest gas prices in the study, will break even about 18 percent faster than a driver in Houston, the city with the lowest gas prices, assuming both are driving the same miles.
"Drivers near major cities often have a wide range of commute distances, which means that the break-even point can be dramatically different from one person to the next," cautioned Baukus Mello. "For example, if a Houston-area commuter travels 12 miles one way to work,
driving 10,000 total miles annually, while a Los Angeles-area commuter travels 25 miles one way, driving 15,000 total miles annually, the Los Angeles commuter recoups his investment almost 80 percent faster."
Still, the study found that, even at today's high gas prices, only a handful of hybrid cars make financial sense for a consumer who buys a new car every five years or less and drives an average number of miles per year. Even at Los Angeles-area gas prices, there are only five hybrid cars that would allow consumers to recoup their additional investment before
they sold the car, assuming they drive an average of 15,000 miles per year. In order of shortest time to break even, they are:
1. Toyota Camry Hybrid
2. Chevrolet Malibu Hybrid
3. Nissan Altima Hybrid
4. Toyota Prius
5. Honda Civic Hybrid
"Consumers who are thinking of purchasing a hybrid car solely to save money on gas should calculate the number of miles they drive per year and their typical per gallon gas price to make an educated decision," advises Baukus Mello. She also recommended consumers use NADAguides.com's Cost of Ownership tool to obtain estimates of other costs, such as car maintenance and car insurance.
Following is a chart of the top five hybrid cars with the greatest return on investment and the number of miles to break even in 10 major metropolitan areas at current gas prices.
Miles to Break-Even in Hybrid Car vs. Gasoline Counterpart at Current Gas Prices
Major Toyota Chevrolet Nissan Toyota Honda Civic
Metropolitan Camry Malibu Altima Prius Hybrid vs.
Area (Per Hybrid vs. Hybrid Hybrid 4dr Hatch Honda Civic
Gallon Gas Toyota vs. vs. vs. Toyota LX
Price) Camry XLE Chevrolet Nissan Camry LE
Malibu LT Altima
2.5 S
Los Angeles
($4.59) 18,292 32,206 37,580 41,626 57,216
San Francisco
($4.56) 18,413 32,418 37,827 41,900 57,592
Seattle
($4.36) 19,257 33,905 39,562 43,822 60,234
Chicago
($4.20) 19,991 35,196 41,069 45,491 62,528
Miami
($4.17) 20,135 35,450 41,365 45,819 62,978
New York
($4.17) 20,135 35,450 41,365 45,819 62,978
Boston
($4.04) 20,782 36,590 42,696 47,293 65,005
Cleveland
($4.03) 20,834 36,681 42,802 47,410 65,166
Denver
($3.94) 21,310 37,519 43,779 48,493 66,655
Houston
($3.88) 21,639 38,099 44,456 49,243 67,685
About This Study: Figures were calculated using EPA-estimated combined average fuel economy and current MSRP prices for all vehicles, federal tax credits for hybrid cars when applicable, and regular unleaded per gallon gas prices by city as of July 3, 2008 from the Energy Information Administration.