Do hybrids pay?
Hybrid technology is spreading to both cars and SUVs, but in most cases you’ll pay dearly for the privilege of electric assist, and all hybrids are not created equally.
Using our owner cost estimates, we checked out the actual cost of owning a hybrid over time. Of the seven hybrids we recently tested, we found that three, the Toyota Prius, Toyota Camry Hybrid, and Honda Civic Hybrid, save owners money compared with their all-gas alternatives, while others depend on tax breaks to break even. Overall, hybrid costs range from $4,250 in savings to a $1,750 deficit over five years, compared with their most similar gas counterparts. The Toyota Prius costs thousands more to buy than either the Toyota Corolla or the Toyota Matrix, but it costs less to own than either: $250 less than the Corolla, and $4,250 less than the Matrix 2.4.
The four-cylinder Toyota Camry XLE and Camry Hybrid cost about the same to buy. The Hybrid gets 34 mpg overall versus 24 mpg for the non-hybrid Camry.
More expensive hybrids with smooth, powerful V6 engines, such as the Lexus RX 400h and the Toyota Highlander cost hundreds more to own over five years than their gasoline counterparts, even though they save thousands of dollars in fuel costs.
Hybrids’ fuel savings are real, however. The base Prius delivered an excellent 44 mpg overall, the highest of any five-passenger vehicle we have ever tested. The Toyota Highlander Hybrid, which achieved the best fuel economy of any current SUV we’ve tested, can save you nearly $700 per year in gasoline costs, compared with the V6 model.
For more information on hybrid vehicles, see How hybrids work. To learn about alternative fuels and fuel economy, see our Guide to driving green.

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Posted by: rdprice64 | Aug 18, 2008 9:47:09 AM
I find it strange that the Highlander Hybrid was the best tested SUV, yet I got 43 mpg in my most recent tank with my Escape Hybrid. There would seem to be some bias going on here, since it wasn't even mentioned or tested.
Despite being ineligible for the federal tax credit, I have more than made up for the price difference in the 17 months that I have owned the vehicle.
Posted by: edith greenwood | Aug 18, 2008 11:00:53 AM
Iused to get 53 mpg on my prius combined highway and city but the car has a terrible flaw and was forced to get rid of it. It has no seat adjustment up and down and nearly crippled me after a long trip. Looking forward to a honda hybrid or any other hybrid whose seat can be adjusted and get good reviews by the exoerts.
Posted by: Voodoo22 | Aug 18, 2008 1:00:34 PM
44 MPG on a Prius is atrocious. We're averaging over 44 MPG on our Yaris over 21000 miles and that includes a very harsh winter. This summer we're averaging over 51 MPG over 3500 miles. Point is, this article is completely pointless unless someone matches up exactly with the testers driving styles. It doesn't even act as a point of reference since the information is sweeping and generalized.
Posted by: Ryan | Aug 18, 2008 3:02:49 PM
I agree with rdprice64. CR is more than a little Toyota biased in every article I've read. We're looking at hybrids now and the Escape is less expensive and gets better mileage that the Toyota. Per the numbers I've crunched the additional upfront costs for the Escape Hybrid over the regular Escape pays for itself in about 2 years, while the Highlander Hybrid takes over 8 years to pay back over the regular Highlander. I'd be happy to send anyone the spreadsheet I put together.
Posted by: Don't miss the intangible benefits | Aug 18, 2008 4:03:56 PM
I know it's fairly intangible, but as a result of becoming the proud owner of a 2007 Hybrid Civic, I've turned around my driving style 180 degrees, most recently achieving 60 mpg where I used to get around 25 mpg. Over the 17000+ miles I've travelled since October 2007, that's an annual savings of approximately $1500.
With the immediate feedback of the fuel economy gauge in my face, I'm driving hyper-efficiently more than 95% of the time, instead of something less than 5% of the time. That has probably saved me nearly as much money (and carbon footprint guilt) as having the more tangible regenerative braking, electric motor assist, downsized engine displacement, etc.
Posted by: gork57 | Aug 18, 2008 6:26:53 PM
I get a steady 45-47 mpg in my 1992 Honda Civic VX. My car is proof that excellent gas mileage can be attained without expensive hybrid electric motors, computers, and batteries. Unfortunately, Honda no longer makes anything like the VX today-and neither does any other manufacturer. If this was successful 16 years ago, why not today?
Posted by: michael | Aug 18, 2008 6:29:10 PM
Ijust bought a camry hybrid in may 08 and I am extremely satisified with the car and the gas savings. I am a big guy so the car is a little tight for a six foot two guy and the trnnk space is minimal but the car is a big money saver
Posted by: Henry Shorr | Aug 18, 2008 6:29:16 PM
CR doesn't address eventual replacement of hybrid batteries, which I understand can costs thousands of dollars and greatly offset fuel savings
Posted by: Nigel | Aug 18, 2008 7:28:51 PM
Without much effort - I am averaging greater than 52 mpg in my Civic hybrid. What was the question again?
Posted by: YanMan | Aug 18, 2008 7:33:31 PM
Sorry, I don't believe that a Prius saves money in the long run. I have a friend with one and she just got hit with a $6000 battery replacement bill at 100k miles. That buys more than 40,000 miles of $3.50/gallon gas and we haven't even factored in the premium she paid for the Prius yet...
Posted by: jim hogg | Aug 18, 2008 8:21:20 PM
the ford escape has been changed and hasn't been tested yet that is why it ain't here.
Posted by: Pierre Lourens | Aug 18, 2008 8:42:38 PM
I have noticed that the typical Consumer Reports driving style is subpar, as far as efficiency is concerned. As a result of skyrocketing gas prices, more and more drivers realize that their driving habits have almost as much to do with their mileage as the car they drive. For example, my stepdad used to only average 14.5mpg with the family Tahoe. When I drive it, however, I average 18mpg. It may be a little difference, but with crossover SUVs barely above that mark, we ended up saving money by keeping our old Tahoe and driving more conservatively.
Posted by: Jeff | Aug 18, 2008 9:16:33 PM
Hybrids are great but who wants to drive one? Every time I ride by one on my motorcycle (getting 47 mpg) I wonder how bored the person is driving one. Get a motorcycle and use it to commute and keep a less efficient car for the grocery trips...
Posted by: Ben | Aug 18, 2008 10:22:33 PM
Maybe CR is more Toyota biased because they make a better overall product than Ford. Toyotas and Hondas have historically performed better in customer satisfaction and maintenance than Ford, thus making CRs bias toward Toyota a little more acceptable... Remember, MPG isn't the only thing that is factored into rating a car.
Posted by: jennifer | Aug 18, 2008 11:47:52 PM
i bought a 2000 buick lesabre a few months ago. it was very used - 140k miles. i expected to get 20 to 25 mpg in it, but much to my delight i have actually averaged 30.5 mpg over the 14k miles i've driven. having the gas mileage displayed as i drive really reinforces my conservative habits.
Posted by: PDK | Aug 19, 2008 1:27:54 AM
@YanMan
Considering the Prius' battery is warranted to 150k miles or 10 years, your friend could have gotten the battery replaced for free under warranty. Either your friend got completely taken for a ride, or you're lying in an attempt to create fear, uncertainty, and doubt.
I also think you conveniently ignored depreciation, insurance, repairs, and all those other wonderful things that contribute to total cost of ownership, not just up front cost and gas prices.
Posted by: David Pierce | Aug 19, 2008 11:03:53 AM
I agree with the previous comment about the Escape Hybrid. I've owned my Escape Hybrid for almost 3 years now and average 30 mpg (my driving is 95% highway driving). When I drive mostly in the city, I average 35 mpg. I know that CU has favored Toyota in the past with most of their car and truck ratings, and was suprised to see in the annual car issue that the Escape Hybrid was not mentioned as the best MPG for a SUV. As far as payback, I paid about $3000 more for the Hybrid version than the V6 version, and with the gas mileage averaging over 10 mpg above the V6, my payback occurred in less than 1 year!
Posted by: Rick | Aug 19, 2008 1:32:32 PM
I agree with several comments here about altered driving styles. I have a 1999 Ford Explorer with 185k milkes on it (yes, Fords I've owned have been VERY reliable). I do mostly highway driving and get around 22-23 MPG doing 65MPH with the cruise on. When I had manual transmission (before kids) I always got more than the EPA mileage, whether it was a Honda, VW, or even Renault Encore!
Posted by: Jonathan | Aug 19, 2008 1:58:04 PM
There are other things to consider when buying a hybrid. For example, how much you drive. If you drive 65 miles a day like myself, then the cost savings will come to you much faster. Another thing to consider is how much time you spend sitting at red lights. If this applies to you, then the savings will come faster as well. CR fails to take this into account.
Posted by: kate | Aug 19, 2008 2:08:02 PM
I drive a 2007 Prius -- get anywhere from 50-58 MPG. Just took it on a 1300 mile driving trip. Extremely comfortable every bit of the way. Friends get into the car and are astounded at how much leg room it provides -- though my 6foot+ friend's head is less than 2" from the roof line. It's true that we'll have to replace the battery at 100,000 miles --but the price on that varies. And I suspect that the cost will drop as Toyata sells more cars. Also, one could simply sell the car at the 100,000 to a dealer or private individual -- and buy a new one.
I am prejudiced towards Toyota. My previous car was a
1990 Toyota Camry. Drove it 275,000 miles before selling it for $900 (and I had many offers!!) to buy the Prius.
Posted by: Tom in Denver | Aug 19, 2008 2:41:26 PM
Has CR or anyone driven and tested the Chevy Malibu hybrid? I am looking for an alternative to the ugly-looking Prius and it's bretheren.
Posted by: Sheldoonis | Aug 19, 2008 2:50:54 PM
The lexus Rh400 hybrid is listed as 16 mpg in the city. We have never gotten less than 21 mpg-even in the cold of winter. Moreover, with thoughtful driving (easy acceleration, coasting where easily done, etc) we now typically get 26-27 mpg in the city. In contrast, consumers lists highway driving as 29 for this vehicle. We get 27 at 60-65, 24 at 77-80.
Posted by: TDI VW Bug | Aug 19, 2008 3:39:44 PM
I bought a used 2005 VW BUG TDI two + years ago and I average +40 mpg (combined city and highway). I was surprised to not see my car on the top used cars with best gas mileage (since mine performs better than a lot of cars they had listed). Diesel is more expensive than gas, but when you consider the alternative fuels that I can put into my engine without converters, I am still very happy with my car. Also, look forward to VW's new Jetta TDI coming out - it has been stated to get a +45 mpg (I believe).
Posted by: keith | Aug 19, 2008 3:56:11 PM
I have a 2004 Civic 5 speed and as long as you are not a lead footed driver you can get up to 45 miles per gallon in the summertime!!
Posted by: Bill | Aug 19, 2008 5:11:37 PM
rdprice64 & Ryan,
They clearly state in their article "best fuel economy of any current SUV we’ve tested". If you had read the complete article and checked your beloved Ford Escape Hybrid review page before posting, you would clearly understand that the Ford Escape Hybrid hasn't been tested yet by CR.
Geeeesh!