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Hybrids & diesels: Do they save money?
Last updated: February 2012
Chevrolet Volt
Gas prices have more than doubled in the last 10 years, and they remain in constant flux. One effect we’ve seen is that the price of hybrids and diesels spike along with gas prices, then fall back to Earth whenever gas prices moderate. When fuel prices were on their meteoric rise in 2008, stories of used hybrids selling for new-car prices were common, and nearly all new hybrids came with a premium on top of the sticker price or a long waiting list.
Lately, the hybrid hype has cooled. And introductions of new diesel models in North America have been limited to a few European automakers.
But not all hybrids and diesels make financial sense, even in an era of high gas prices. Our latest analysis shows which models pay for themselves in overall owner costs—and which don’t.
Our findings show that six tested diesels can save you money no matter what fuel costs, because their depreciation and fuel costs are significantly lower than their closest conventional counterparts: the Volkswagen Golf TDI, Jetta TDI sedan and wagon, and Passat TDI, the Mercedes-Benz E350 BlueTec, and the GL350 BlueTec SUV. Buying a Passat TDI instead of the five-cylinder Passat can save you $5,000 over five years based on diesel fuel price of $3.90 per gallon and $3.60 for gas. The Mercedes-Benz GL350 BlueTec can save more than $7,000 over the same time frame.
We found that some models will cost you more to own than a conventional equivalent will at any gas price on record. For example, gas would have to cost more than $9 a gallon before you would save money by buying an Infiniti M35h instead of a conventionally-powered M37. Likewise you'd come out ahead with the BMW 335d diesel only if fuel cost more than $13.70 a gallon.
Some models weren’t clear-cut winners or losers. They may make sense for some consumers who are willing to pay a little extra in the long run to burn less gas.
Hybrid & diesel payback
In this analysis, we compared the five-year owner costs of 13 hybrids and seven diesels with those of similar conventional vehicles, using Consumer Reports' new-car owner-cost estimates. The conventional vehicles with which we compared the hybrids and diesels are the closest available alternatives when considering all factors, including performance, safety, and features. Most were compared with a similarly equipped all-gas version from the same model line. For hybrids and diesels that don’t have a direct gasoline counterpart, we chose the most similar model in price and features, from the same automaker where possible or otherwise a direct competitor.
Cost factors we considered include depreciation, fuel costs, insurance, interest on financing, maintenance and repairs, and sales tax. Of those, depreciation makes up the largest portion, a whopping 48 percent of owner costs in the first five years. We factor in depreciation, assuming that owners trade in their vehicles after five years, a typical ownership period.
Hybrids vs. similar all-gas models
After comparing the five-year owner costs of hybrids with those of similarly equipped conventional vehicles, we found many will save you money, even without tax incentives.
| Make & Model | Purchase price | MPG | Total 5-year owner cost | Total 5-year cost savings (or loss) | Years to pay back | Fuel cost for 5-year payback |
|---|---|---|---|---|---|---|
| Small Cars | ||||||
| Chevrolet Volt ** | $32,495 | 61 | $36,500 | -$1,000 | 6 | $4.27 |
| Chevrolet Cruze 1LT | $19,720 | 26 | $35,500 | |||
| Honda Civic Hybrid | $24,800 | 40 | $29,250 | $750 | 1 | $2.15 |
| Honda Civic EX | $21,275 | 29 | $30,000 | |||
| Honda Insight | $18,970 | 38 | $26,750 | -$500 | 7 | $4.75 |
| Honda Fit (base) | $15,870 | 30 | $26,250 | |||
| Lexus CT 200h | $31,775 | 40 | $37,250 | $3,250 | 1 | Any price |
| Audi A3 2.0T (FWD) | $30,345 | 25 | $40,500 | |||
| Nissan Leaf SV | $26,130 | 106 | $27,500 | $5,750 | 1 | Any price |
| Nissan Versa Hatchback | $19,850 | 28 | $33,250 | |||
| Toyota Prius Two | $24,280 | 44 | $26,500 | $1,500 | 1 | Any price |
| Toyota Corolla LE | $18,360 | 32 | $28,000 | |||
| Volkswagen Golf TDI (manual) | $24,955 | 38 | $29,250 | $5,750 | 1 | Any price |
| Volkswagen Golf 2.5 | $20,525 | 24 | $35,000 | |||
| Volkswagen Jetta TDI | $25,100 | 34 | $29,500 | $2,750 | 1 | Any price |
| Volkswagen Jetta SE (2.5) | $20,300 | 25 | $32,250 | |||
| Midsized cars | ||||||
| Lexus HS 250h | $39,975 | 31 | $44,500 | -$3,500 | More than 8 | $11.51 |
| Acura TSX (base, 4-cyl.) | $30,695 | 25 | $41,000 | |||
| BMW 335d | $51,875 | 28 | $54,250 | -$4,500 | More than 8 | $13.70 |
| BMW 328i | $41,925 | 23 | $49,750 | |||
| Ford Fusion Hybrid | $32,985 | 34 | $38,000 | $1,250 | 1 | $1.86 |
| Ford Fusion SEL (4-cyl.) | $28,015 | 24 | $39,250 | |||
| Hyundai Sonata Hybrid | $26,545 | 33 | $33,250 | $1,750 | 1 | Any price |
| Hyundai Sonata SE (2.4) | $23,545 | 27 | $35,000 | |||
| Volkswagen Jetta SportWagen TDI (manual) | $26,030 | 36 | $30,000 | $6,250 | 1 | Any price |
| Volkswagen Jetta SportWagen SE | $24,780 | 23 | $36,250 | |||
| Volkswagen Passat TDI SE | $28,665 | 37 | $32,000 | $5,000 | 1 | Any price |
| Volkswagen Passat SE | $25,595 | 25 | $37,000 | |||
| Luxury sedans | ||||||
| Infiniti M35h | $57,945 | 25 | $63,000 | -$2,750 | More than 8 | $9.35 |
| Infiniti M37 | $51,945 | 21 | $60,250 | |||
| Mercedes-Benz E350 BlueTec | $57,525 | 26 | $62,250 | $4,250 | 1 | Any price |
| Mercedes-Benz E350 | $55,245 | 19 | $66,500 | |||
| Small SUVs | ||||||
| Ford Escape Hybrid | $33,985 | 26 | $39,250 | $500 | 1 | $2.43 |
| Ford Escape XLT (4-cyl.) | $28,240 | 21 | $39,750 | |||
| Midsized SUVs | ||||||
| Lexus RX 450h | $50,430 | 26 | $54,500 | -$3,000 | More than 8 | $8.97 |
| Lexus RX 350 | $44,430 | 21 | $51,500 | |||
| Toyota Highlander Hybrid Limited | $45,554 | 27 | $47,750 | $0 | 5 | $3.62 |
| Toyota Highlander Limited (V6) | $38,804 | 18 | $47,750 | |||
| Large SUVs | ||||||
| Chevrolet Tahoe Hybrid | $57,380 | 19 | $65,250 | $2,750 | 1 | $1.25 |
| Chevrolet Tahoe LT | $51,435 | 14 | $68,000 | |||
| Mercedes-Benz GL350 BlueTec | $67,525 | 19 | $73,500 | $7,250 | 1 | Any price |
| Mercedes-Benz GL450 | $68,525 | 15 | $80,750 | |||
*MPGe represents the equivalent energy in one gallon of gas.
**Based on 70% electric and 30% gas usage.
**Based on 70% electric and 30% gas usage.
I have a Jetta TDI and I get around 65mpg. the value of my car according to KBB has decreased much less than a regular Jetta. Diesel is much better than a hybrid in my opinion. No battery replacement also makes them a more attractive choice.
ReplyDeleteIt’s well-known for most consumers that hybrids can save you money over a period of 5 or so years, but it’s very interesting to see the numbers up against diesels. For example, the article points out that a 5 year cost savings is equal between the electric vehicle Nissan Leaf SV and the diesel vehicle Volkswagon Golf TDI, and the total cost savings are only second to one other vehicle in the article. It’s pretty amazing to see these savings. I would say though on the overall environmental scale, the Nissan Leaf still wins on being environmentally friendly because it has zero emissions.
ReplyDeleteJordan Weaver
ReplyDeleteI think the hybrid move is a good and smart one , but are reality is that many people just cant yet afford something in that category. The majority of our nation is just trying to make ends meet and cannot afford a hybrid which is typically a new or newer car type. I myself was going to make the purchase of a toyota prius but I quickly found out that the replacement battery could cost upwards of $10,000. I knew I would not prepared to make that make purchase anytime in the near future. So, I bought a toyota corolla instead. It s brand new and cheaper than the prius would have been. I will one day make the purchase a ecologically friendly car. I am glad the research and info is being published so that consumers can start considering a hybrid choice.