Should you buy hybrid car amid fluctuating gas prices?

Friday, February 13, 2015
Should you buy hybrid car amid fluctuating gas prices?
With the fluctuating price of gas, does it make financial sense to invest in a hybrid vehicle?

LOS ANGELES (KABC) -- While gas prices have been rising lately, we're still paying about $1 less than a year ago and $2 less than the record set in 2012.

The lower gas prices have fueled purchases of bigger, less fuel-efficient vehicles, while hybrid sales suffer. So is it worth it to invest in a hybrid car?

The Toyota Prius, with its 50-mile-per-gallon gas tank, has been the best-selling hybrid vehicle for years.

Just over two years ago, when the average price of gas hit $4.67 a gallon in California, hybrid sales spiked. But now that prices are nearly half as much, many consumers are buying big.

"We have really seen a big shift toward more people purchasing larger vehicles - a lot of trucks and SUVs," said Jessica Caldwell, a senior analyst at Edmunds.com.

That means filling up your gas tank today is about half as cheap as it was in October 2012.

Several carmakers sell both gas and hybrid versions of the same models.

When gas prices were much higher, it made financial sense to spend thousands more on a hybrid, because you could easily save that much in just a few years - but not now.

Take the Toyota Camry LE. The gas-powered version, which gets about 28 miles per gallon, sells for about $3,800 less than the hybrid, which gets 41 miles per gallon.

When gas was at its peak, it made sense to buy the hybrid. You would make up for the higher price in about five years. At today's prices, it takes nearly nine years.

The Ford Fusion S Hybrid is about $4,000 more than the gas-powered version.

The break-even point a couple of years ago was 3.9 years. Now, it takes nearly seven years to recoup that money.

It's the same story for the Hyundai Sonata Limited models.

The hybrid costs nearly $3,000 more, but you have to keep it for eight years to break even, compared to 4.6 years in October 2012.

Still, just because the break-even point on a hybrid is much longer now, as consumers know, gas prices can jump dramatically in a short time frame.

"You look at gas prices what they are today, what they could be three years from now, what they were five years ago, much higher than they are now, and make that purchase decision in that mindset. Don't just think gas prices will stay this way forever," Caldwell said.