Hybrid cars 101

Hybrid cars can achieve great fuel economy and clean emissions, thanks to powerful batteries and electric motors that supplement their gas engines or, at times, drive the car purely on electric power. The best hybrid cars are efficient, reliable and not much more expensive than their gas-powered counterparts. To decide which hybrid car is right for you, or whether you should buy a hybrid car at all, consider the following:

  • Choose wisely to make sure your hybrid investment pays off. A hybrid car will usually cost more up front than a similar gas-only model, but the most efficient hybrids -- including the Toyota Prius (Base MSRP: $21,650 to $28,790) -- will quickly pay back this price difference, a ConsumerReports.org study finds, thanks to savings on fuel, depreciation and more. However, with less efficient hybrids, it may take a long time to break even.
  • Hybrid batteries carry a required warranty of at least eight years/80,000 miles, according to ConsumerReports.org. A replacement Toyota Prius battery costs about $2,300 -- about the cost of a transmission that would probably need to be replaced on a gas-only car, editors point out. Hybrid cars have had fewer problems than other cars overall, ConsumerReports.org finds.
  • A full-hybrid car uses two different power sources. An electric motor and an internal combustion engine work together to power the vehicle, and under certain circumstances the vehicle can be propelled by electric motors alone. The engine keeps the batteries charged, and the batteries assist when more power is needed, such as during quick starts.
  • Mild hybrids such as the Mercedes-Benz S400 Hybrid cannot run on electric power alone. The engine is shut down when the vehicle is coasting, braking or stopped, saving fuel and reducing emissions. An unusual starter system instantly restarts the engine when the brake is released. Mild hybrids typically have smaller electric motors, but they can still provide some extra power while the car is under load. Fuel savings are not nearly as dramatic with mild hybrids as with full hybrids like the Toyota Prius and Ford Fusion Hybrid.
  • Technology called regenerative braking is used in hybrid cars to recharge the batteries. To recapture otherwise wasted kinetic energy, vehicles with regenerative braking systems run the hybrid car's electric motors backward to generate electricity when coasting or braking, which in turn charges the batteries.
  • Technology is rapidly evolving. Major automakers are now developing improved full hybrids, plug-in hybrids and electric cars. Carmakers are looking for lighter batteries that hold more power. Consumers might want to wait to see what is available in the next few years before plunking down cash for a hybrid now.

How long does it take to recoup the extra cost of a hybrid car?

A drawback to all hybrid cars is that they come with a premium price tag compared to their non-hybrid counterparts. For example, the Ford Fusion Hybrid starts at $28,600 while the gas-powered Fusion starts at $19,820, so there's a big up-front premium for the hybrid technology. Although the Fusion Hybrid gets significantly better gas mileage in city driving (an EPA-estimated 41 mpg vs. 22 mpg for the nonhybrid Fusion), the difference is smaller on the 'highway (36 mpg vs. 31 mpg for the nonhybrid Fusion). That raises the often-asked question, "Is a hybrid car really worth the extra cost?"

Several media outlets, namely ConsumerReports.org and Edmunds.com, have examined that question and the answer is: it depends. The more miles you drive -- and the more gas costs -- the faster the payback. That's one reason sales of hybrid cars were especially high in mid-2008 when the average price of gas hovered near $4 a gallon. Several hybrid cars recoup their higher initial cost after just one year, according to a  ConsumerReports.org study, including the popular  Toyota Prius, Toyota Camry Hybrid and the Honda Civic Hybrid. The original study was conducted in 2008, and it doesn't include some recently released models, like the 2011 Honda CR-Z, 2011 Hyundai Sonata Hybrid and 2011 Mercedes-Benz S400 Hybrid to name a few. To determine whether hybrid cars are worth the price premium, ConsumerReports.org compared each vehicle to its closest gasoline counterpart in terms of fuel costs, depreciation, maintenance costs and insurance costs.

Some hybrid cars in ConsumerReports.org's study cost more to own and operate than comparable gas versions over five years, including the 2010 Honda Insight and the 2010 Nissan Altima Hybrid (both are identical to the 2011 versions of each). The pricier 2011 Lexus GS 450h (Base MSRP: $58,050) still costs "significantly more" than its gas counterpart after five years. The hybrid cars that recouped their cost the quickest had the smallest price differences between their closest nonhybrid counterparts.

Other studies seem to indicate that hybrid cars generally don't save their owners money, according to their own calculations. A recent Edmunds article discusses the potential for savings with hybrids and diesels, and it ends up concluding that "if your primary interest in a hybrid or diesel is saving money on fuel, it makes sense to check out other options." A CarGurus.com study compared 45 hybrid vehicles from 2003-2010 that had similar gasoline versions, and used initial purchase price, depreciation, and total fuel costs to determine the total cost of ownership over time. This study found that "on average the hybrid models cost 25% or over $2,200 more to own and operate than their non-hybrid counterparts."

Finally,Edmunds.com calculates that fuel-friendly clean-diesel cars like the 2010 Volkswagen Jetta TDI (Base MSRP: $22,830) recoup their costs faster than most hybrid cars. Of course, "there are plenty of other reasons to buy a hybrid, including reduced emissions for the environment," Edmunds.com states, "but for the hybrid car owners we spoke with, any additional up-front costs were outweighed by their love for their cars."

Hybrid cars 101

Hybrid cars can achieve great fuel economy and clean emissions, thanks to powerful batteries and electric motors that supplement their gas engines or, at times, drive the car purely on electric power. The best hybrid cars are efficient, reliable and not much more expensive than their gas-powered counterparts. To decide which hybrid car is right for you, or whether you should buy a hybrid car at all, consider the following:

  • Choose wisely to make sure your hybrid investment pays off. A hybrid car will usually cost more up front than a similar gas-only model, but the most efficient hybrids -- including the Toyota Prius (Base MSRP: $21,650 to $28,790) -- will quickly pay back this price difference, a ConsumerReports.org study finds, thanks to savings on fuel, depreciation and more. However, with less efficient hybrids, it may take a long time to break even.
  • Hybrid batteries carry a required warranty of at least eight years/80,000 miles, according to ConsumerReports.org. A replacement Toyota Prius battery costs about $2,300 -- about the cost of a transmission that would probably need to be replaced on a gas-only car, editors point out. Hybrid cars have had fewer problems than other cars overall, ConsumerReports.org finds.
  • A full-hybrid car uses two different power sources. An electric motor and an internal combustion engine work together to power the vehicle, and under certain circumstances the vehicle can be propelled by electric motors alone. The engine keeps the batteries charged, and the batteries assist when more power is needed, such as during quick starts.
  • Mild hybrids such as the Mercedes-Benz S400 Hybrid cannot run on electric power alone. The engine is shut down when the vehicle is coasting, braking or stopped, saving fuel and reducing emissions. An unusual starter system instantly restarts the engine when the brake is released. Mild hybrids typically have smaller electric motors, but they can still provide some extra power while the car is under load. Fuel savings are not nearly as dramatic with mild hybrids as with full hybrids like the Toyota Prius and Ford Fusion Hybrid.
  • Technology called regenerative braking is used in hybrid cars to recharge the batteries. To recapture otherwise wasted kinetic energy, vehicles with regenerative braking systems run the hybrid car's electric motors backward to generate electricity when coasting or braking, which in turn charges the batteries.
  • Technology is rapidly evolving. Major automakers are now developing improved full hybrids, plug-in hybrids and electric cars. Carmakers are looking for lighter batteries that hold more power. Consumers might want to wait to see what is available in the next few years before plunking down cash for a hybrid now.

How long does it take to recoup the extra cost of a hybrid car?

A drawback to all hybrid cars is that they come with a premium price tag compared to their non-hybrid counterparts. For example, the Ford Fusion Hybrid starts at $28,600 while the gas-powered Fusion starts at $19,820, so there's a big up-front premium for the hybrid technology. Although the Fusion Hybrid gets significantly better gas mileage in city driving (an EPA-estimated 41 mpg vs. 22 mpg for the nonhybrid Fusion), the difference is smaller on the 'highway (36 mpg vs. 31 mpg for the nonhybrid Fusion). That raises the often-asked question, "Is a hybrid car really worth the extra cost?"

Several media outlets, namely ConsumerReports.org and Edmunds.com, have examined that question and the answer is: it depends. The more miles you drive -- and the more gas costs -- the faster the payback. That's one reason sales of hybrid cars were especially high in mid-2008 when the average price of gas hovered near $4 a gallon. Several hybrid cars recoup their higher initial cost after just one year, according to a  ConsumerReports.org study, including the popular  Toyota Prius, Toyota Camry Hybrid and the Honda Civic Hybrid. The original study was conducted in 2008, and it doesn't include some recently released models, like the 2011 Honda CR-Z, 2011 Hyundai Sonata Hybrid and 2011 Mercedes-Benz S400 Hybrid to name a few. To determine whether hybrid cars are worth the price premium, ConsumerReports.org compared each vehicle to its closest gasoline counterpart in terms of fuel costs, depreciation, maintenance costs and insurance costs.

Some hybrid cars in ConsumerReports.org's study cost more to own and operate than comparable gas versions over five years, including the 2010 Honda Insight and the 2010 Nissan Altima Hybrid (both are identical to the 2011 versions of each). The pricier 2011 Lexus GS 450h (Base MSRP: $58,050) still costs "significantly more" than its gas counterpart after five years. The hybrid cars that recouped their cost the quickest had the smallest price differences between their closest nonhybrid counterparts.

Other studies seem to indicate that hybrid cars generally don't save their owners money, according to their own calculations. A recent Edmunds article discusses the potential for savings with hybrids and diesels, and it ends up concluding that "if your primary interest in a hybrid or diesel is saving money on fuel, it makes sense to check out other options." A CarGurus.com study compared 45 hybrid vehicles from 2003-2010 that had similar gasoline versions, and used initial purchase price, depreciation, and total fuel costs to determine the total cost of ownership over time. This study found that "on average the hybrid models cost 25% or over $2,200 more to own and operate than their non-hybrid counterparts."

Finally, Edmunds.com calculates that fuel-friendly clean-diesel cars like the 2010 Volkswagen Jetta TDI (Base MSRP: $22,830) recoup their costs faster than most hybrid cars. Of course, "there are plenty of other reasons to buy a hybrid, including reduced emissions for the environment," Edmunds.com states, "but for the hybrid car owners we spoke with, any additional up-front costs were outweighed by their love for their cars."

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