High Hybrid Costs

Sunday, April 16, 2006

April 16 -- Consumer Reports gives hybrids high ratings. The Honda Accord, the Lexus RX-400-H, the Toyota Highlander and the Toyota Prius are some of the best in their categories.

But will a hybrid save you a lot of money?

Like 95% of Prius owners in Consumer Reports' survey, Andrea Raisfeld says she'd buy a Prius again. Though she got it for environmental reasons, she's impressed with how well it handles.

"It is a peppy little aggressive vehicle," says Raisfeld.

Consumer Reports says the six hybrids it's tested generally score well for performance and are highly rated for reliability. But its just-published investigation reveals hybrids won't save you money.

It's true hybrids do deliver better mileage. Consumer Reports tests show the Prius gets an impressive 44 miles-per-gallon overall.

But gas-savings with other hybrids is much lower. For instance, the Honda Accord hybrid gets only one to two miles per gallon more than the regular Honda Accord.

In addition to a higher sticker price, there are other extra hybrid costs, for instance, sales tax and financing. Insurance can be higher, too. Maintenance is more expensive, and there's quicker depreciation.

Consumer Reports found after five years of ownership the extra costs range from an extra $3,700 for a Honda Civic Hybrid to more than $13,000 for the Toyota Highlander Hybrid Limited.

After five years of ownership, extra costs were about $5,500 more for the Toyota Highlander Hybrid Limited. However, Consumer Reports says the Honda Civic Hybrid will save you a little, about $300 in the first five years. The Toyota Prius will save you around $400 compared to a Toyota Corolla LE.

For Andrea Raisfeld, that's good news. "All the benefits of the car are underscored by the fact that you're not polluting, that you're not polluting the environment while you drive it," she says.

Consumer Reports' analysis does factor in the federal tax credits for hybrid owners. But be aware the tax credits will phase out for each carmaker after it sells 60,000 hybrids.

Toyota is expected to be the first manufacturer to reach that number, probably sometime next year.

Get more News »