Most (and Least) Cost-Effective Hybrids

If you're considering a hybrid vehicle, whether it's to save money on gas or to reduce your "carbon footprint," you should know what it will cost you.

Hybrid cars always cost more than their non-hybrid counterparts, even after tax credits. And it takes a while for gasoline-savings to make up for that premium. CNNMoney.com asked the automotive Web site Edmunds.com to compute how long it would take for 13 leading hybrids.

These rankings assume gas prices stay constant and you drive 15,000. If gas prices move higher, or if you drive a lot, the hybrids' premium would be made up for more quickly.

Also, we didn't include the effect of depreciation - which would only make hybrids look to be more costly. Most experts think that hybrid vehicles lose value faster than non-hybrid ones.

One interesting result is that vehicles from the same company, even vehicles that are very similar to one another, can vary greatly in their cost effectiveness.

Some hybrids really are cost effective enough that, as gas prices rise or if you drive more than 15,000 miles a year, it becomes a reasonable investment even on purely financial grounds.

All fuel economy estimates in this feature are combined city/highway fuel economy ratings calculated by Edmunds com from the EPA's city and highway estimates. These estimates may not match the EPA's own "combined" estimates for 2008.

Toyota Prius

Hybrid value rank: 1

Time to recoup premium in fuel savings alone: 4.2 years

Typical cost: $22,279

Compared to: Toyota Camry LE 4-cylinder

Hybrid cost premium: $2,303 (Based on Edmunds.com "True Market Value." No tax credits are available on Toyota vehicles.)

Overall mpg vs. non-hybrid: 46 vs. 27.6

Annual fuel savings: $543 (175 gallons)

The comparison to a 4-cylinder Camry makes sense because the Prius offers almost the same amount of interior space. Since the Prius was designed from the wheels up as a hybrid vehicle, its hatchback body style offers ample storage space.

The Prius' hybrid-only design also allowed engineers to maximize its fuel economy. For instance, the Prius gains fuel economy through its unique aerodynamic shape as well as through its hybrid drivetrain.

Chevrolet Malibu Hybrid

Hybrid value rank: 2

Time to recoup premium in fuel savings alone: 4.6 years

Typical cost: $22,140

Compared to: Chevrolet Malibu 4 cyl.

Hybrid cost premium: $535 (Based on Edmunds.com "True Market Value" and $1,300 hybrid tax credit.)

Annual fuel savings: $116 (38 gallons)

Offering only a modest fuel economy improvement, the Malibu Hybrid might not seem like much of a hybrid. It has what General Motors calls a "belt alternator system" in which the vehicle's electric motor provides minimal assistance. It does, however, allow the car's gasoline engine to shut off entirely whenever the car stops, event momentarily, and it does provide some additional power during acceleration. The Malibu Hybrid can never drive under all electric power, though, even at low speeds.

The benefits to the consumer are that this system, which requires relatively small batteries and minimal changes to the basic car's engineering, costs less to build and to buy. That means you aren't spending thousands of dollars to save a few hundred dollars a year in gas. Also, smaller batteries mean the Malibu Hybrid gives you the same ample trunk space as the non-hybrid version, whereas other hybrid sedans have severely truncated trunks.

The very similar Saturn Aura Hybrid ranks lower than the Malibu because of a larger price gap between it and a newly available 4-cylinder Aura.

Toyota Camry Hybrid

Hybrid value rank: 3

Time to recoup premium in fuel savings alone: 4.8 years

Typical cost: $25,200

Compared to: Toyota Camry XLE 4-cylinder

Hybrid cost premium: $1,381.46 (Based on Edmunds.com "True Market Value." No tax credits are available on Toyota vehicles.)

Overall mpg vs. non-hybrid: 33.7 vs. 27.6

Annual fuel saved: $303 (98 gallons)

The equipment level on the Toyota Camry Hybrid makes it most similar to the upper-level 4-cylinder version. That helps, because that means the Camry Hybrid gets compared to a more expensive car. That makes the Camry Hybrid a much better deal than if it were stripped-down version.

What makes this car's value all the more remarkable is that this calculation doesn't involve a tax credit. There are no tax credits available on Toyota products, anymore.

Ford Escape Hybrid

Hybrid value rank: 4

Time to recoup premium in fuel savings alone: 5 years

Typical cost: $25,075

Hybrid value rank: 3

Compared to: Escape XLT

Hybrid cost premium: $2,310 (Based on Edmunds.com "True Market Value" and $3,000 hybrid tax credit.)

Overall mpg vs. non-hybrid: 31.4 vs. 24

Annual fuel savings: $458 (148 gallons)

The Ford Escape Hybrid is the most fuel-efficient SUV on the market today. It can run on electric power only all the way up to about 25 miles per hour. It also offers a smooth ride and decent handling in normal driving.

One concern for both this vehicle and the Mariner is the lack of electronic stability control, an important safety feature available on other hybrid SUVs. This feature will be offered beginning with the 2009 model year, so we advise waiting if you possibly can.

Interestingly, the closely related Mercury Mariner Hybrid, which is virtually the same vehicle with the same fuel economy and the same additional cost for the hybrid, based on sticker price, has a higher hybrid premium. That is because the Edmunds.com's "True Market Value," an estimate of what people actually end up paying for the vehicle, is closer to full sticker price for the Mercury version.

Saturn Vue Green Line

Hybrid value rank: 5

Time to recoup premium in fuel savings alone: 5.8 years

Typical cost: $24,170

Compared to: Vue 4-cylinder

Hybrid premium: $1,774 (Based on Edmunds.com True Market Value and $1,575 expected tax credit.)

Overall mpg vs. non-hybrid: 30.3 vs. 25.3

Annual fuel savings: $303 (98 gallons)

The updated Saturn Vue Green Line looks nicer and drives nicer than the 2007 model year version. It has the same low cost "belt alternator" hybrid system as the Saturn Aura and Chevrolet Malibu Hybrid. In this case the price difference between the non-hybrid Vue and the hybrid version means, in part because of a much smaller federal tax credit, substantial added cost for those getting the hybrid Vue.

Mercury Mariner

Hybrid value rank: 6

Time to recoup premium in fuel savings alone: 6.2 years

Typical cost: $26,588

Compared to: Mariner

Hybrid cost premium: $2,842 (Based on Edmunds.com "True Market Value" and $3,000 hybrid tax credit.)

Overall mpg vs. non-hybrid: 31.4 vs. 24

Annual fuel savings: $458 (148 gallons)

Even though the two vehicles are virtually identical, the Mariner Hybrid will take longer to pay for itself compared to a non-hybrid Mariner because buyers are paying closer to full sticker price for the Mariner Hybrid than for the Escape Hybrid. Sometimes, it seems, "badge engineering" does have an impact.

Honda Civic Hybrid

Hybrid value rank: 7

Time to recoup premium in fuel savings alone: 7.4 years

Typical cost: $22,337

Compared to: Civic LX sedan

Hybrid cost premium: $2,734 (Based on Edmunds.com "True Market Value" and $2,100 hybrid tax credit.)

Overall mpg vs. non-hybrid: 43.3 vs. 32.3

Annual fuel saved: $368 (119 gallons)

To find out if you qualify for the hybrid vehicle tax credit, check with a tax accountant before you buy your car. If you pay the alternative minimum tax, you can't take the tax credit. Also, if the tax credit would cause you to pay the AMT, you can take only part of the tax credit.

One factor Edmunds.com's data does not take into account is depreciation, or how much value a vehicle loses between the time it is purchased as and when it is later sold as used. Most used car value experts, including Kelley Blue Book, say that hybrid vehicles will lose value more rapidly in the coming years than non-hybrid vehicles. That would mean that most vehicles on this list will actually take longer to earn back their extra cost than is indicated here.

The Honda Civic Hybrid, however, is expected to hold its value better than other hybrid cars, according to Kelley Blue Book. It will still probably lose value considerably faster than a non-hybrid Civic sedan, however.

Nissan Altima Hybrid

Hybrid value rank: 8

Time to recoup premium in fuel savings alone: 8.4 years

Typical cost: $24,944

Compared to: Altima 2.5S

Overall mpg vs. non-hybrid: 33.7 vs. 28.3

Hybrid cost premium: $2,221 (Based on Edmunds.com "True Market Value" and $2,350 hybrid tax credit.)

Annual fuel saved: $264 (85 gallons)

The Altima Hybrid is a fun-to-drive hybrid car that actually saves some serious fuel. Unfortunately, it costs buyers a good bit more than the non-hybrid version so, from a strictly economic standpoint, it's no great bargain. Too bad because, for the money, it's possibly the best hybrid sedan on the market.

Saturn Aura Green Line

Hybrid value rank: 9

Time to recoup premium in fuel savings alone: 9.4 years

Typical cost: $22,140

Compared to: Aura XE

Annual fuel savings: $116 (38 gallons)

Hybrid cost premium: $1,095 (Based on Edmunds.com "True Market Value" and $1,300 hybrid tax credit.)

The Saturn Aura Green Line has the same hybrid drivetrain as the Chevrolet Malibu Hybrid. It also gets the same fuel economy and it even has exactly the same sticker price. The difference is that a four-cylinder Aura, something that's new for the 2008 model year, costs about $500 less than a comparable Chevrolet Malibu. With relative fuel savings of just $116 a year, $500 added to the cost differential almost doubles the time it takes for the Aura Hybrid to pay for itself.

Last year, when the only alternative was a V6 Aura, the Aura Green Line was a bargain. This year, with a 4-cylinder on the lot that gets the same horsepower - actually, a little bit more - there's little benefit to the Green Line, either in terms of the environment or your bank account.

Lexus GS450h

Hybrid value rank: 10

Time to recoup premium in fuel savings alone: 10.8 years

Typical price: $54,900

Compared to: GS460

Hybrid cost premium: $2,280 (Based on Edmunds.com "True Market Value." No tax credits are available on Lexus vehicles.)

Overall mpg vs. non-hybrid: 24 vs. 21.6

Annual fuel savings: $212 (68 gallons)

Realizing that most consumers, especially among luxury car buyers, are more concerned with prestige and "sending a message" than fuel economy, Toyota has always emphasized performance in its Lexus hybrids rather than just fuel economy. Consequently, Lexus cars do rather poorly if you're looking at cost-effectiveness. The GS450h does deliver impressive acceleration on top of its 2.4 mile per gallon boost in fuel economy.

Lexus RX400h

Hybrid value rank: 11

Time to recoup premium in fuel savings alone: 11.7

Typical price: $41,047

Compared to: RX350

Hybrid cost premium: $4,767 (Based on Edmunds.com "True Market Value." No tax credits are available on Lexus vehicles.)

Overall mpg vs. non-hybrid: 24.7 vs. 20.3

Annual fuel savings: $407 (132 gallons)

The Lexus RX400h offers an impressive boost in estimated fuel economy compared to the non-hybrid version, resulting in equally impressive dollar savings of $407 a year in gas. Still, a big price difference eats up that money for the foreseeable future.

Toyota Highlander Hybrid

Hybrid value rank: 12

Time to recoup premium in fuel savings alone: 22.8 years

Typical cost: $39,448

Compared to: Toyota Highlander Limited with optional 3rd row seats

Hybrid cost premium: $6,986 (Based on Edmunds.com "True Market Value." No tax credits are available on Toyota vehicles.)

Overall mpg vs. non-hybrid: 25.7 vs. 22

Annual fuel saved per year: $307 (99 gallons)

Despite Toyota's reputation for reliability, it's doubtful that many Highlander Hybrid owners will have their SUVs long enough to see this investment pay off financially. Of course, it could be said to pay off in terms of cleaner air and a slowing in the rate of global warming. But it that's your concern, why not skip the non-optional third-row seats and just get a Ford Escape Hybrid or Saturn Vue Green Line, either of which will do better in that regard.

Lexus LS600h L

Hybrid value rank: 13

Time to recoup premium in fuel savings alone: 3,771 years

Typical cost: $104,000

Compared to: Lexus LS460 L with "executive seating," upgraded sound system and performance suspension

Hybrid cost premium: $15,458

Overall mpg vs. non-hybrid: 21.3 vs. 21.3

Annual fuel savings: $3.09 (1 gallon)

Of course, no-one would actually buy the Lexus LS600h just to save money on gas. At least, we certainly hope they wouldn't. (If anyone did, we hope they got the really, really, really extended warranty.) Lexus sells this car as a more Lexus-like alternative to the performance luxury models offered by competitors like Mercedes-Benz and BMW, only Lexus uses a more efficient way to generate the extra power needed to haul the reclining, massaging rear seat and the little electric beverage cooler. In the non-hybrid version, those added luxuries would probably reduce fuel economy. So, buyers are paying $15,000 to feel not quite so guilty about their pleasures. Pass the free-range foie gras, would you, please?