Edmunds.com Evaluates Payback Period of Hybrid and Diesel Vehicles

by Staff

April 1, 2010

4 min to read

Fluctuating gas prices, expiring tax credits and economic instability have many consumers wondering if purchasing a hybrid or diesel vehicle is the most cost-effective choice in today's market. An updated study by Edmunds.com compares the payback period of the newest hybrid and diesel vehicles compared to their gasoline vehicle counterparts.

"As a general rule, we found that diesels are more affordable than hybrids, taking into account the vehicles' prices, tax credits and fuel usage," notes Edmunds' AutoObserver.com Senior Editor Bill Visnic, who participated in the panel "The Green Car of the Future" with representatives from BMW, Toyota and The New York Times, this evening at the Japan Society in New York.

Set forth below are the annual gas savings and payback periods for the latest hybrid and diesel models as compared to their gasoline-driven counterparts:

Sample Hybrid Comparisons:

Year	Make	Model	Federal Tax Credit	True Market Value	Hybrid Premium	Annual Hybrid Gas Savings	Years to Break Even
2010	BMW	7 Series		$82,613
2010	BMW	Active Hybrid 7	$0	$103,175	$20,562	$362	56.8
2010	Cadillac	Escalade		$66,992
2010	Cadillac	Escalade Hybrid	$2,200	$67,140	$148	$801	0.2
2010	Chevrolet	Tahoe		$43,160
2010	Chevrolet	Tahoe Hybrid	$2,200	$47,626	$4,466	$483	9.3
2010	Ford	Escape		$23,608
2010	Ford	Escape Hybrid	$750	$28,261	$4,653	$543	8.6
2010	Ford	Fusion		$21,484
2010	Ford	Fusion Hybrid	$850	$26,229	$4,745	$573	8.3
2010	GMC	Sierra		$32,753
2010	GMC	Sierra Hybrid	$2,200	$35,792	$3,039	$442	6.9
2010	GMC	Yukon		$44,883
2010	GMC	Yukon Hybrid	$2,200	$48,320	$3,437	$483	7.1
2010	Honda	Civic		$19,245
2010	Honda	Civic Hybrid	$0	$22,526	$3,281	$453	7.2
2010	Honda	Civic		$17,489
2010	Honda	Insight	$0	$19,222	$1,733	$434	4.0
2010	Lexus	ES 350		$33,702
2010	Lexus	HS 250h	$0	$33,336	-$366	$894	-0.4
2010	Lexus	LS 460		$70,763
2010	Lexus	LS 600h L	$0	$100,603	$29,840	$277	107.6
2010	Lexus	RX 350		$35,913
2010	Lexus	RX 450h	$0	$40,855	$4,942	$709	7.0
2010	Mercedes-Benz	S-Class		$89,254
2010	Mercedes-Benz	S-Class Hybrid	$1,150	$84,592	-$4,662	$462-	10.1
2010	Mercury	Mariner		$23,302
2010	Mercury	Mariner Hybrid	$750	$28,652	$5,350	$437	12.2
2010	Mercury	Milan		$24,346
2010	Mercury	Milan Hybrid	$850	$26,417	$2,071	$573	3.6
2010	Nissan	Altima		$21,476
2010	Nissan	Altima Hybrid	$2,350	$23,824	$2,348	$364	6.5
2010	Toyota	Camry		$24,499
2010	Toyota	Camry Hybrid	$0	$25,014	$515	$386	1.3
2010	Toyota	Camry		$20,924
2010	Toyota	Prius	$0	$22,918	$1,994	$797	2.5
2010	Toyota	Highlander		$27,665
2010	Toyota	Highlander Hybrid	$0	$33,244	$5,579	$571	9.8

Sample Diesel Comparisons:

Year	Make	Model	Tax Credit	Final TMV	Diesel Premium	Annual Gas Cost	Years to Break Even
2010	Audi	A3	$0	$28,413		$1,731
2010	Audi	A3	$1,300	$28,250	-$163	$1,285	-0.4
2010	Audi	Q7	$0	$46,296		$2,654
2010	Audi	Q7	$1,150	$49,266	$2,970	$2,228	7.0
2010	BMW	3 Series	$0	$39,209		$2,093
2010	BMW	3 Series	$900	$41,740	$2,531	$1,611	5.3
2010	BMW	X5	$0	$46,475		$2,449
2010	BMW	X5	$1,800	$48,229	$1,754	$2,047	4.4
2010	Mercedes-Benz	GL-Class	$0	$59,237		$2,899
2010	Mercedes-Benz	GL-Class	$1,800	$56,485	-$2,752	$2,297	-4.6
2010	Mercedes-Benz	M-Class	$0	$47,023		$2,494
2010	Mercedes-Benz	M-Class	$900	$47,565	$542	$2,149	1.6
2010	Mercedes-Benz	R-Class	$0	$48,092		$2,654
2010	Mercedes-Benz	R-Class	$1,550	$47,986	-$106	$2,182	-0.2
2010	Volkswagen	Golf	$0	$20,979		$1,804
2010	Volkswagen	Golf	$1,700	$22,910	$1,931	$1,285	3.7
2010	Volkswagen	Jetta	$0	$21,632		$1,804
2010	Volkswagen	Jetta	$1,300	$22,852	$1,220	$1,285	2.4
2010	Volkswagen	Touareg	$0	$39,358		$2,654
2010	Volkswagen	Touareg	$1,150	$41,494	$2,136	$2,149	4.2

This study assumed the vehicles were sold at the Edmunds.com True Market Value price, were driven 15,000 miles per year and achieved the Environmental Protection Agency's recorded mileage for combined city and highway driving. Average gas prices were assumed to be $3.09 per gallon of premium unleaded, $2.81 per gallon of regular unleaded and $2.95 per gallon of diesel.

The federal tax credit and current incentives were applied when appropriate. Please note that Ford and Mercury hybrid vehicle tax credits will be eliminated on April 1, 2010, but consumers who order one before March 31 qualify for the credit. Tax credits for Honda and Toyota hybrids have already been phased out.

Topics:Gasoline-Electric Hybrids diesel vehicles Edmunds Green Fleet

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