For now, hybrid cars are selling for anywhere from $2,000 to $10,000 more than comparable conventional models from the same manufacturer.
That’s a lot of gas you’re going to have to save to pay for the difference!
Doing the Math
So how do you figure the savings? The short answer: Divide a $6,400 difference in purchase price by the price of gas. Assuming gas prices average $3.40 per gallon, you will have to save 1,882 gallons in gasoline before you reach the break-even point. This is somewhat more if you financed the purchase and have to pay interest on the price difference.
How Long Will it Take to Break Even if You Buy a Hybrid?
How many miles do you drive each year? Divide the answer by the number of gallons you have to save to pay for the price difference, and that’s how long it will take for the hybrid to pay for itself.
In this example, if you drive 12,000 miles per year, it will take 6.37 years to make up the difference in price. The more you drive, the faster the car will pay for itself.
A word of warning: Eventually you’ll have to replace those hybrid batteries! That will cost as much as $3,000 at some point in the future. That will add another few years to your break-even analysis. Be sure to look at all the factors involved in owning a hybrid.
Contact us if you need help in determining if a gas or hybrid vehicle is the best choice for you!
Here’s an infographic that illustrates some of the differences between owning a gasoline-powered vehicle and a hybrid: