Only a third of hybrids save money in first 5 years

Only a third of hybrids save money in first 5 years

In an analysis of cost-of-ownership data on 30 MY 2014 hybrids, only one-third saved money in the first five years vs. their non-hybrid counterparts.

The average price premium for a hybrid is $4,325. But after five years and 75,000 miles, the premium is just $1,339, said Vincentric, the data provider that did the study. The analysis looked at costs such as insurance, maintenance, financing and repairs.

The top savers were the Lexus CT 200h ($7,632 saved versus the IS 250 sedan); Toyota Avalon Hybrid ($3,356 saved); Lincoln MKZ Hybrid ($3,252 saved) and Audi Q5 Hybrid ($2,611 saved). Six others saved from $1,600 to $86.

One reason the cars save less than might be expected is the dropping price of gas. Another is the increased fuel efficiency of conventional cars.

If owners keep their hybrids longer than five years, the savings begin to pan out. And many consumers are keeping their cars longer. The age of the average car on the road is still 11 years.