Hybrid Vehicles:
Does Fuel Economy Equal Savings at the Pump?

by Christopher Burdick

Hybrid vehicles are making a big splash in the automotive world. They are praised for their economy and environmentally friendly gas consumption. However, does driving a hybrid make sense financially? Let's look at a comparison between the Toyota Highlander V6 and the Highlander Hybrid.

At this time, Highlander Hybrids are selling for sticker price and buying one typically requires a long wait (usually a few months). Because of demand, there are very few dealers (if any) who are offering discounts on them. A well equipped Hybrid sells for around $41,800.00 or so. A well equipped regular V6 Highlander would cost around $37,460.00, but with discounts would sell for around $35,200.00

So, the difference is about $6,600.00 How long would it take for the Hybrid driver to see a return on his money paid for driving the hybrid?

The Hybrids EPA mileage rating is 30/26, so let's say an average of 28 MPG.
The V6 Highlander gets 18/24, so lets say an average of 21 MPG. The average driver puts around 15,000 miles on their car each year. Therefore, the hybrid driver would use about 536 gallons of gas a year, and the regular Highlander driver would use about 714 gallons. At $3.00 a gallon, that equates to $1,608.00 spent yearly on gas by the Hybrid driver and $2,142.00 spent on gas by the V6 highlander owner.

How long does the Hybrid owner need to recoup the $6,600.00 extra that they spent to get the hybrid over the standard V6? Well, it'll be 13 years before they see a savings. After 13 years of paying $3.00 for gas, the Hybrid consumed $20904 vs. the standard V6 at $27846 = Savings of $6,942.00 for the Hybrid driver. Hybrid owners also get to take a tax deduction on their federal income taxes, but it is nowhere near to making a major dent in the price difference between the standard models and the Hybrids. For example, the Highlander Hybrid AWD owner benefits from a $2,200.00 tax deduction, but that may only add up to a few hundred bucks, or perhaps even less.

So are hybrid vehicles worth the extra money over a traditional vehicle? From a financial standpoint they will be more expensive in the short term. However, if you recycle, worry about global warming and acid rain (and we all should) then a hybrid is another way you can go about saving our environment. Saving our planet may be worth the financial sacrifice.

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