The break-even point for fuel savings depends on many things, not least the type of vehicle you’re comparing it to, how often you drive, how long you expect to keep the car and so on.
Compare the Purchase and Running Costs
To calculate whether or not a hybrid car is worth it for you, you have to work out whether or not the money you stand to save in fuel costs will cover the higher initial outlay for buying a hybrid in the first place. So, what’s the price difference between the car you’re interested in and a similar model that isn’t a hybrid? Keep in mind that you want to compare cars that are similar in terms of equipment, body style, safety features and so on – ideally, they should be in a similar state if you’re looking at used cars.
Include Costs Beyond Fuel
Fuel savings aren’t the only potential benefit of driving a hybrid car. Other costs that could be lower than for a similar non-hybrid car include:
- Servicing costs
- Insurance costs
- Registration costs
- Costs of replacing brakes and tyres, which may wear out more slowly in a hybrid because of all the time it spends coasting and using regenerative braking at low speeds
And other costs that could be higher than for a similar non-hybrid car include:
- Resale value could be higher or lower depending on the market at the time you want to sell
- Battery warranty – older hybrid cars may not have much (or any) battery warranty left, and hybrid car batteries can be expensive to replace
All of these things should be factored in when deciding whether or not a hybrid car makes sense for you. But the most important figure to start with is the difference in purchase (or finance) costs between the hybrid car and a similar non-hybrid car, providing the baseline for the central question: are hybrid cars worth it?
That’s the figure your fuel savings will need to recoup. If that figure is low, and you regularly find yourself stuck in traffic, you could see your investment pay off relatively quickly. But if the extra cost of a hybrid is substantial and you don’t do a huge amount of mileage, it could take a very long time indeed.
Match the Calculation to Your Driving
Official fuel economy figures, which the IEA covers at www.iea.org/reports/fuel-economy-in-major-car-markets, are determined under standardised test conditions, but for some vehicles (hybrids included) real-world fuel economy can vary substantially from driver to driver.
That’s because hybrids are especially efficient in stop-start driving, thanks to regenerative braking, and are able to creep along at very low speeds without using any fuel at all. As such, if you regularly do short trips, school runs, run errands in town or make a commute that regularly finds you crawling in traffic, a hybrid car could really come into its own.
On the other hand, if most of your mileage consists of steady-state motorway driving, a modern, efficient conventional car will probably perform almost as well as a hybrid, and that is assuming you don’t regularly tow a trailer, carry heavy loads in the boot, suffer from poorly-inflated tyres or have an aggressive right foot. All of these things can adversely affect fuel economy and could eat into the savings on offer from a hybrid.
Calculate Using Your Own Fuel Economy
- how much fuel you’re likely to use over the course of a year with your current (or other potential) car, and
- how much fuel you think you’d use over the same period in a hybrid car.
Decide Whether a Hybrid Fits Your Use
If you only rarely use your car for short hops, a hybrid car probably isn’t for you, especially if there’s a cheaper conventional car on offer with impressive economy figures.
Likewise, if you only cover relatively low mileages each year, the fuel savings on offer from a hybrid car may take a long time to recoup the cost of buying one in the first place.
On the other hand, some drivers would say the peace and quiet on offer from a hybrid car, its smooth progress in heavy traffic and reduced number of trips to the pump far outweigh any potential savings at the pumps!
Similarly, while some used hybrid cars, particularly older examples whose battery health is unknown, could see their values suffer, there’s a strong argument that efficient cars in general could command stronger-than-average used car prices. Do your research before assuming either scenario.
Bottom Line
A hybrid car could be money-saving, or at least money-well-spent, if you regularly drive in stop-start conditions, expect to keep your car long enough for fuel savings to outweigh its higher running costs, and can find one without paying a crazy premium.
A hybrid car probably isn’t for you if you rarely use your car or there’s a conventional car on offer that’s significantly cheaper and also delivers impressive fuel economy.
If you’re on the fence about whether a hybrid car is right for you, jot down the difference in cost between the two cars you’re interested in, along with your annual fuel bill and how long you think you’re likely to keep your car for, and work from there!
