This Is How Much the Average American Saves With a Hybrid Car

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

The big selling point of a hybrid vehicle is saving on gas. See how much savings that really means. [[{“value”:”

How much hybrid vehicles actually save on gas can be a bit hard to narrow down. It varies so much depending on the specific model hybrid, what vehicle you’re comparing it to — and who is driving them both.

That said, we can use some general data to get a rough idea of what a typical driver might expect. Here’s what we get.

Average gas savings: $532 a year

I think it’s fair to say many of us picture a Toyota Prius when we think of hybrid vehicles — and it’s still one of the best-selling hybrids on the market — so we’ll use that as our base model. The 2024 Prius advertises a combined 57 miles per gallon (57 city, 56 highway).

To make the comparison fair, we have to compare like with like. So, the best-selling gas-engine car on the market is the Toyota Camry. It advertises 35 miles per gallon, combined.

According to the Federal Highway Administration, the average driver covers about 13,596 miles per year. And AAA says an average gallon of gas will run you $3.55.

Using the above numbers, the Camry driver would spend about $1,379 per year on gas, while the Prius driver spends just $847 a year on fuel. That’s a savings of around $532 per year.

Other cost considerations

While saving $500 a year on gas is no small thing, make sure you’re considering all of the potential costs eating into that savings.

The big thing is initial investment. Buying a new hybrid will likely cost you $3,000 to $10,000 more upfront than a similarly equipped gas-only vehicle. (Plug-in hybrids can be even worse, though some qualify for tax credits.) Even at the low end of that spectrum, it would take you six years ($3,000 divided by $500 a year) to break even on the extra cost.

Additionally, while general maintenance is about the same, repairs may be more expensive (repairing hybrids can involve higher-priced parts and more specialized training). Then there’s insurance. The higher purchase price already means a higher insurance premium. But the higher repair costs will also add to the overall cost of your car insurance.

Are hybrids worth it?

Here are a few things to consider when deciding if buying hybrid is a good financial move:

What make/model are you buying? The specific model you pick will determine the efficiency and upfront cost.What is your current vehicle? If you’re going from a gas-powered car to a hybrid SUV, for instance, you may see less fuel savings than if you’re upgrading from a gas-powered truck to a hybrid car.Where do you do most of your driving? A hybrid will save you the most money on gas if you do the majority of your driving in the city.How long will you keep the vehicle? It can take years to recoup your initial investment through gas savings, so the longer you plan to keep the vehicle, the better.

You’ll need to do your own math, using your specific vehicle choices and driving habits, to determine if it’s a smart buy. You can use the EPA’s fuel economy calculator to help with your calculations.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More