Exploring the True Cost of Owning a Hybrid Car

Are Hybrid Cars Really More Expensive in the Long Run?

Owning a hybrid may be better for air quality, but it may not be better for your wallet.

We buy hybrids because they use less gas. It might be because we want to lower emissions -- or because we want to spend less money at the pump.

If you're team Lower Emissions, then you may be willing to pay a little extra over the years to choose a hybrid. However, if you're more of a Lower Gas Bill hybrid driver, you probably want to make sure you're really coming out ahead.

Initial cost:

Hybrids add $3K to $10K (or more). How much going hybrid will cost you compared to a full-gas vehicle varies significantly depending on the make and model.

For example, a base-model gas-powered Toyota RAV4 is only $3,050 less than the base-model RAV4 Hybrid.

Plug-in hybrids (PHEV) -- hybrid engines that can be charged externally -- will cost you the most. This extra cost could be partially offset with federal tax credits if the vehicle qualifies.

Upkeep and maintenance:

Mostly a wash. You'll probably pay less for gas, but repairs can be more expensive (more computerized parts).

As a con, repairs can be more expensive (more computerized parts).

Resale value:

Still favoring gas engines. Hybrids tend to have more depreciation than gas-powered vehicles.

TL;DR:

Hybrids are often more expensive, but it varies by vehicle and driver. A hybrid will often have a bit more cost over its lifetime than a gas-powered vehicle. Crunch the numbers before making such a large investment.