Hybrid Car Payback / Cost

March 11, 2015

This is a run down of added cost of Hybrid car VS a normal Gas motor vehicle.
The actual calculations will depend on the types of vehicles selected. I will give you two examples to compare. Let’s say that you are considering purchasing a 2005 Toyota Corolla or a 2005 Toyota Prius – both have excellent fuel economy. A Prius (hybrid) may cost around $22,000, while a comparably equipped Corolla (non-hybrid) may run around $16,000. It is estimated that a Prius will achieve about 55 MPG (combined highway/city), while a Corolla will achieve 34 MPG (combined highway/city) with an automatic transmission. If you only considered fuel costs the following would be true. At 100,000 miles the Prius would have used about 1818 gallons ($4091) of fuel while the Corolla consumed 2941 gallons ($6617). To calculate gallons, take the miles driven divided by MPG (e.g., 100,000/55 = 1818). If gas prices averaged $2.25 a gallon, the Prius would have saved you about $2,526. Since the sticker price difference is about $6,000, it would take over 200,000 miles to make up the cost in fuel savings. However, the hybrid may still be a good choice if you are looking for ways to reduce fossil fuel consumption and decrease pollution.