When the Prius first came out, I did some calculating to determine if the fuel savings would make up for the increased price over other cars. At that time, for me, it didn't (although the cost of gas was much lower and the Prius was still attractive for its reduced emissions).
With the addition of the Camry hybrid, it's time to revisit those calculations.
Assuming 10,000 miles a year driving (which is about average, maybe a little low) and using EPA city mileage estimates yields the following:
| Car |
City EPA mileage |
Gallons of fuel per year
(assuming 10,000 miles driven) | Price |
| Corolla | 32 | 313 | $14,105 |
| Prius | 60 | 167 | $21,725 |
| Camry I4 | 24 | 417 | $18,270 |
| Camry V6 | 22 | 455 | $23,040 |
| Camry Hybrid | 40 | 250 | $25,900 |
Now, there are a lot of missing variables (the Camry hybrid is going to be nicer than the base model I4 Camry, etc.), but this is enough for a basic comparison.
| Cars | Price Premium | 5 year savings at $2/gallon | 5 year savings at $3/gallon | 5 year savings at $4/gallon |
|---|
| Prius vs Corolla | $7,260 | $1,460 | $2,190 | $2,920 |
| Hybrid Camry vs I4 Camry | $7,630 | $1,670 | $2,505 | $3,340 |
| Hybrid Camry vs V6 Camry | $2,860 | $2,050 | $3,075 | $4,100 |
One additional thing to factor in would be that the extra capital cost for the hybrid gives you lower operating costs (which may have increased utility that compensates for the opportunity cost of paying more for the car upfront).
Additionally, the above does not factor in the environmental impact of the hybrid vehicles or any potential tax incentives that may exist for purchasing a hybrid vehicle.
