Pricier Gasoline Makes Hybrids Payback a "Better Deal"

Washington DC June 13, 2008; The AIADA newsletter reported that the Toyota Prius, the country's top-selling hybrid car, sells for an average $22,939, compared to $19,231 charged for its gas-powered cousin, the Camry. But the Prius also drinks less gasoline – which now tops the $4-a-gallon mark.

So which is the better deal: The more expensive car that is cheaper to operate, or the less-expensive car that drinks more gasoline?

According to the Wall Street Journal, it's the Toyota Prius -- but only if the buyer keeps the car for longer than three years. It takes three years for the hybrid's fuel savings to pay back the premium paid to buy the Prius instead of a comparable gas-powered car.

In addition to the Prius, analysts found that the Nissan Altima, GMC Yukon, Toyota Camry, and the Mercury Mariner were among hybrid vehicles that offered relatively quick paybacks. Click here for a graph.

"There are really only a handful of hybrids that may be good financial propositions for most consumers right now, and the Prius is one of them," said Jesse Toprak, executive director of industry analysis for Edmunds.com.

For more on what hybrids make sound financial sense, Click Here.