USA Today reports, "Rising fuel prices and competition among a proliferation of gasoline-electric hybrids have sliced the payback period for hybrids to two or three years in some cases, instead of five years or more that made hybrids harder to justify at lower fuel prices." The trend is occurring despite the face that hybrid prices are rising, spurred by growing demand. The payoff period is shrinking quickly. "An analysis for USA Today by auto-price consultant Edmunds.com shows that the difference between a Toyota Camry hybrid and a similarly equipped gasoline Camry was $889 Friday, up from $850 a week ago." Assuming that an owner drives15,000 miles a year, "Edmunds figures just 1.7 years for the Camry hybrid's fuel savings to offset the car's higher price -- slightly longer than 1.6 years when the price difference was less a week earlier."
Kicking Tires notes, "Other hybrids, like the Nissan Altima, Mercury Mariner and GMC Yukon, can take between three and five years to recoup their higher cost, while the extravagant Lexus LS 600h, with a sticker price just north of $100,000, would take 102 years.
Jesse Toprak, Edmunds' pricing director, told USA Today that "Most consumers who bought hybrids initially were the ones who bought them for non-financial reasons, because they were the environmentally friendly focused consumer, or for fashion reasons." Now, for the first time hybrids are beginning to "make sense for middle-class families looking to save money on gas."
There is still controversy on the issue. CNBC columnist Phil LeBeau wrote just last Friday that "the increases and gap in prices between hybrids and comparable standard models means hybrid owners will take longer to recoup their money in gas savings."
LeBeau says the payoff time is growing. USA Today says it is shrinking. This isn't the first time this controversy has come up in the press. Or the second. What do you think? Based on your driving habits and gas bills, does a hybrid make financial sense? You can research the best hybrid cars with U.S. News' car rankings and reviews



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