Will a shiny new hybrid really save you money?

Some people (like myself) actually enjoy our cars. We like to drive! We like to feel the car. I'm not talking about a sports-car here. I'm a "car-guy" and a motorsports enthusiast, but I don't make nearly enough money to own anything remotely close to a "sports car". I drive a compact, 4 cylinder sedan.

My daily commute, what I consider "obligatory" and unavoidable driving, makes up nearly 75% of my annual mileage, and I have no desire to turn it into the Indy 500. I usually stick to the right lane and roll with the traffic. However, an occasional fun drive through the country on winding roads is something I don't want to give up completely. Sometimes you just want to go, and driving the sloth-like Prius with it's shopping cart handling will never be an option for those of us that actually take pleasure in a drive.

Also, not everyone wants to drive a car that looks as weird as a Prius. In fact, most people I've asked think the Prius looks dull, uninspiring, or downright hideous. So let's put that ugly little anomaly aside for a moment and compare apples to apples.

As Toyota has the longest history with hybrids and they have undoubtedly advanced the technology more than any other manufacturer, we'll stick with their offerings for now.

The Toyota Camry.

It's a nice, family sedan with superb finish quality, comfort, & longevity... overall just a really great car. I don't personally like them at all, but there's no way I can deny that the Camry is a solid vehicle.

And for the sake of this post, it comes in 3 different flavors... 4 cylinders, a hybrid, and a V6 that I've added in just for reference.

Since the whole point of this post is to calculate the cost saving measures of hybrids, I'm going to compare the base model of each engine configuration. While the options aren't exactly equal across all three versions, the basics are similar... automatic transmission, A/C, etc. All fuel cost calculations are done based on an annual mileage of 20,000km (12,400 miles) with a 55/45 mix of city & highway drivings, all added up with today's Regular Unleaded 87 Octane fuel price of $1.45/L (approx. US$5.53/gal.).

-Toyota Camry LE (2.4L - 158 hp - 3307 lb curb weight)

• $27942 (Vehicle cost including all applicable taxes, freight, prep., etc.)
• 9.4L/100km (combined EPA estimate)
• $2726 (annual fuel cost)
• $227.17 (monthly fuel cost)
• $538.90 (monthly vehicle payment, calculated at toyota.ca)
• $766.07 (total monthly cost to own and operate the 4 cylinder Camry)

-Toyota Camry Hybrid (2.4L - 187 hp - 3638 lb curb weight)

• $36136 (Vehicle cost including all applicable taxes, freight, prep., etc.)
• 6.9L/100km (combined EPA estimate)
• $2001 (annual fuel cost)
• $166.75 (monthly fuel cost)
• $696.95 (monthly vehicle payment, calculated at toyota.ca)
• $863.70 (total monthly cost to own and operate the hybrid Camry)

-Toyota Camry LE V6 (3.5L - 268 hp - 3461 lb curb weight)

• $33,399 (Vehicle cost including all applicable taxes, freight, prep., etc.)
• 10.7L/100km (combined EPA estimate)
• $3103 (annual fuel cost)
• $258.58 (monthly fuel cost)
• $644.16 (monthly vehicle payment, calculated at toyota.ca)
• $902.74 (total monthly cost to own and operate the hybrid Camry)

So, buying that shiny new Camry hybrid to cut down on your monthly fuel expenses will save you a grand total of... oh, wait... sorry, my bad... it'll cost you $97.63 more each month. That's $1171.56 per year, which adds up to $5857.80 extra over the 5 years that you're paying for that shiny new hybrid. So, after those 5 years are up, and your shiny new hybrid isn't really all that shiny or new anymore, you can finally start saving money... about $60.42 per month. At that rate, it'll take almost 97 months (just over 8 years) to pay back the $5857.80 that you've already paid out.

Congratulations! After 13 years, you've broken even.

But hey, at least you're saving the environment.