Is Buying a Hybrid Vehicle Money Well-spent?

However, some hybrids are much better than others and some simply make no financial sense at all.

Can you recover the extra money spent on a hybrid vehicle if you own and drive it for five years?

That was the question that BCAA attempted to answer in its cost analysis. It looked at the 13 2008 model-year hybrid vehicles (powered by both gasoline and electricity) currently available in Canada and compared them with similar gasoline-only models.

Establishing a non-hybrid comparable vehicle was not always an easy task.

For example, there is no gasoline-only version of the Toyota Prius. The Toyota Matrix was chosen as the closest match, in this instance, as it's also a five-door hatchback and it offers about the same passenger and cargo space.

The price-tag premium for a hybrid vehicle can vary considerably. It can be as low as $2000, for some low-cost motor-assist systems, but typically a full-hybrid system will add $5,000 to $7,000. That price differential will also depend on how both vehicles are packaged for sale with other equipment.

Although a hybrid's initial price tag is higher, the final cost may be less, when government incentives are taken into consideration. The Honda Civic Hybrid is a perfect example as, after provincial and federal eco-incentives, its take-home price is actually $742 lower.

A word of caution: The federal eco-auto rebate program ends with the 2008 model-year vehicles, so the equation will change for '09 vehicles. There are also some gasoline-only vehicles that, because of outstanding fuel economy, also qualify for this federal incentive.

It also may be possible to get a better financing interest rate than the nine per cent used in the BCAA cost analysis. The same interest rate was used for all vehicles to make it a fair comparison, but buyers should shop around for the best deals.

Better fuel consumption is a big financial plus for hybrids that will look even better if the cost of gasoline continues to rise. BCAA used $1.40 per litre for its calculation, but pump prices are expected to hit $1.50 a litre in B.C. by summer. Who knows what we'll be paying five years from now?

Not all hybrids are created equal when it comes to fuel economy, and you can really see the difference that makes when you project fuel costs over five years.

Although less costly initially, some of the motor-assist systems actually take longer to recover that extra investment.

The Toyota Matrix is fairly fuel-efficient vehicle, yet a Toyota Prius would save you an additional $927 on fuel costs annually, according to BCAA. On the other hand, if you compare driving the Chevrolet Malibu four-cylinder with a Malibu Hybrid, you only save $196 annually.

Looking at the overall totals, there appear to be some clear winners and losers. Dead last was the Lexus LS Hybrid, which leaves its super-rich owners a staggering $46,566 in the hole!

On the plus side, the Toyota Camry Hybrid came in No. 3 with a $2,135 surplus for owners. The Toyota Highlander Hybrid was No. 2 with a $2,765 overall cost reduction. And the outright winner was the Honda Civic Hybrid, with an impressive $3,865 saving for owners.

Money aside, there is one other comparison factor that should also be taken into consideration when buying a new vehicle and that's carbon footprint.

From a greenhouse-gas reduction standpoint, the Toyota Prius jumps to the front, followed by the Honda Civic Hybrid.

Bob McHugh is a freelance automotive journalist, writing on behalf of BCAA.