Hybrids were supposed to thrive as gas prices skyrocketed and consumers looked for ways to lower their costs at the pump. But that demand hasn’t materialized largely because of their cost. Typically, a hybrid car will cost $1,000 to $4,000 more than the same car with a conventional gas engine, says John O’Dell, a senior editor at Edmunds.com. And in some cases the hybrid version could cost a whopping $30,000 extra.
It takes years for a driver to recover that premium, often longer than he or she might intend to own the car. At $4 a gallon, they’ll need four to 12 years to break even on most average hybrid models, according to Edmunds.com. For instance, the best-selling hybrid, the Toyota Prius – which just recorded its best month since 2007 — costs $6,000 more than the comparably-equipped gas-powered Toyota Corolla. At $4 a gallon, the buyer who drives about 15,000 miles a year would need seven years to break even and start seeing a payback in gas savings. That drops to six years if gas prices hit $5 a gallon but rises to nine years if gas prices fall to $3 a gallon.
