Will A Hybrid Save You Money?

"Will a hybrid save me money?" Wouldn't it be great if there was a definitive answer to that question? Unfortunately, and despite what a showroom salesman will tell you, there is no clear answer. Instead, each consumer must weigh the costs and benefits associated with the hybrid. No salesman can do that for you.

Admittingly, those who evaluate cars agree that hybrids aren't the right choice for everyone. There are traditional cars that cut fuel usage and are significantly better for the environment than the old "gas-guzzlers" of previous decades, and these may be the better choice for some consumers. However, if the advertised savings associated with hybrid cars is luring you to a dealer, educate yourself about the product before purchasing it.

What Is a Hybrid?

A hybrid is a car that is fueled by both gas and electric. There are electric cars that run solely on electric plug-in mechanisms, and then there are gas/diesel powered cars that require traditional fuel for their power. Hybrids blend the two by using the battery on low power consumption modes and the gasoline engine when more power is needed. Higher speeds require higher power, therefore employing the gasoline engine. This fact becomes important for those drivers who travel many "highway miles" that won't utilize the battery power.

What Do They Cost?

It's hard to state a general cost because like all cars there are options and features that greatly affect the car's price. However, a recent report from Liberty Mutual states that the average cost for a 2008 hybrid car is $2,000 more than the traditional vehicle.

What About Repairs?

One argument against the savings from a hybrid is repair cost. Because the hybrid car is still specialized, the repair shops tend to be specialized as well. Do some homework before buying and look at what repair shops will service a hybrid and what they charge for the service. Many owners are finding that their service and repairs are limited to dealers who charge more for labor as well as parts. This also poses a problem for consumers who travel away from home to purchase vehicles (because some areas are known to have higher costs for new cars).

How About the Trade-In?

It's too early to get good statistics on trade-in values of hybrids. However, the interest trends in hybrids indicate a strong trade-in value and slow depreciation for these models. That means that you have more time to recoup your initial investment and a greater return on it in the end, regardless of fuel consumption.

Will I Really Save on Fuel?

When a car costs nearly $2,000 more than another model, logic says that it must use $2,000 less in fuel to make it a valuable investment. How long will it take to save $2,000 worth of fuel by driving a hybrid? That depends on the mileage driven, the type of miles (see above), and the price of fuel. However, it could take as much as 8 years to show a savings that equals the initial investment of the car. Likewise, highway drivers won't reap the same benefits as those who drive local miles at slower speeds.