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An analysis of seven 2007 hybrids by Consumer Reports found that four of them -- the Prius, Civic, Ford Escape and Toyota Camry -- would essentially break even within five years if the full tax credit was available. (The Prius and other Toyota models are no longer eligible for the credit, and the Honda's credits are being phased out, but other models still qualify.)
The Toyota Highlander, Lexus RX 400h and Honda Accord hybrid (now out of production) all cost significantly more -- $5,000 to $6,000 more over five years -- than their conventional counterparts even when the full tax credit was available.
If you buy used, you get no tax credit. The only way to know if a used hybrid will pay for itself is to do the math: Use the car's gas mileage and depreciation history and your own driving patterns to calculate how much you would save versus a comparable conventional vehicle.
The bottom line:
- Unless you log a lot of miles or gas prices skyrocket, Wiesenfelder said, a hybrid probably is "not going to pay for itself in fuel savings." So if saving money is your primary concern, you may be better off buying a conventional model that gets high gas mileage over a hybrid.
- Your driving habits make a big difference. If you drive a lot of highway miles, you won't save much money. Hybrids' electric motors do the most good in stop-and-go driving.
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- If, however, you're determined to have a "greener" car -- one that emits fewer pollutants and lets others know you care about the environment -- and you're willing to take the risks of a still-new technology, then a used hybrid may be the way to go.
- If you want a hybrid and hope to avoid out-of-warranty problems, consider one of the new hybrids that still qualifies for the credit. Again, you'll need to do the math for yourself, but the Ford Escape in particular might be a good bet, based on Consumer Reports' analysis.
It's still a used car
And anytime you buy a car used, you should take the following steps:- Do your research. MSN Autos, Kelley Blue Book, Edmunds.com and Cars.com can help you check out various models and alternatives. Once you've narrowed down the options, invest in detailed auto reports from Consumer Reports.
- Know what a car is worth. This is particularly important with hybrids and especially the Prius. People have been known to set "crazy prices," said Edmunds.com senior consumer advice editor Philip Reed, under the increasingly outdated assumption that used versions are rare.
In California, you'll also need to watch out for "car-pool sticker shock." The state's Department of Motor Vehicles handed out a limited number of automobile stickers allowing hybrids to use car-pool lanes. Because there are no more stickers being given out, some owners have tacked up to $2,000 extra to the asking prices of hybrids that have them.
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A hidden hybrid danger? Emergency workers are worried that the batteries used in hybrid vehicles might make them dangerous in an accident.
The sites mentioned above, and the Consumer Reports guides, should give you a better handle on what's reasonable.
- Know the car's history. Ask for maintenance and repair records. The seller may not have them or may not give them to you, but it's worth a try. A Carfax report can help you check the vehicle's history, including major accidents.
- Get an inspection. This essential step is a bit tougher with a hybrid because relatively few mechanics outside dealerships are familiar with these cars. If you can't find one, take it to a dealership that sells the model for a going-over.
Published Jan. 17, 2008
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