Jul 10, 2008 4:00 pm US/Eastern
3 On Your Side: Will A Hybrid Save You Money?
As gas prices rise at the pump, interest in hybrids is rising, too. Is it worth trading in your gas guzzler for a hybrid? 3 On Your Side's Jim Donovan checked whether you'll really save in the long run.
These days smart shoppers are primarily concerned with how any purchase will affect their pocketbook. Hybrids have gotten a lot of hype, but you really need to crunch the numbers before signing on the dotted line.
Interest in fuel-efficient hybrids is on the rise as gas prices hit historic levels. One thing is for certain.
"The hybrid vehicles do help the environment. So from the environmental point of view, there is some redeeming value to the hybrid vehicle," says AAA Mid-Atlantic's Joe Erickson.
However, if your main goal is saving money, he says a hybrid make not make sense.
"You would basically be driving long commutes at highway miles to even make it worth your while financially," Erickson says.
That's because the sticker price of hybrids can be significantly higher than their gas-powered counterparts.
"Take a major manufacturer, Toyota. The Prius and the Corolla are $9,000 apart," says Erickson.
"The Prius technology is very good, but it is also very expensive."
Even at today's gas prices, it would take years before you would break even. Erickson adds, "When you put pencil to paper, you are saving three to six cents a gallons driving a hybrid over a gasoline-powered similar vehicle."
So even with occasional government tax breaks and sometimes lower insurance costs, often you would be better off trading your gas guzzler for a smaller, more fuel-efficient vehicle than opting for a hybrid.
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