Released: May 13, 2008

Hybrids recoup higher cost in less time

Source: Sharon Silke Carty, USA Today

Rising fuel prices and competition among a proliferation of gasoline-electric hybrids have sliced the payback period for hybrids to two or three years in some cases, instead of five years or more that made hybrids harder to justify at lower fuel prices.

At the same time, increasing interest in hybrids is driving their prices up and eroding their fuel cost-saving benefits.

An analysis for USA TODAY by auto-price consultant Edmunds.com shows that the difference between a Toyota (TM) Camry hybrid and a similarly equipped gasoline Camry was $889 Friday, up from $850 a week ago. Assuming 15,000 miles a year, Edmunds figures just 1.7 years for the Camry hybrid’s fuel savings to offset the car’s higher price — slightly longer than 1.6 years when the price difference was less a week earlier.

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