2012 Hybrid SUVs: Payback by Model, Length of Ownership, and Price of Gas

The sport utility vehicle: large, powerful, and gas guzzling. The common perception of these vehicles, despite their wild popularity in the past two decades, remains unchanged and largely accurate. Or does it? Hybrid-electric SUVs have been available since the mid-2000s, bringing reasonable fuel efficiency to a vehicle class that is not known for such. Although they have failed to achieve the popularity of smaller hybrid sedans, they represent an honorable portion of hybrid-electric vehicle sales.

The hybrid SUV market has been dominated by two major players since its inception and has changed little in recent years. The Ford Escape Hybrid, introduced in 2004 as a 2005 model, and the Toyota Highlander Hybrid, introduced in 2005 as a 2006 model, still are the only mainstream hybrid SUV options for the 2012 model year. Larger hybrid SUVs, such as the full-size Chevrolet Tahoe Hybrid and twin GMC Yukon Hybrid, have been introduced since but have failed to spark with consumers due to better but still dismal fuel economy numbers in the low 20s. The Ford Escape is classified as a compact SUV and the Toyota Highlander a mid-size crossover SUV.

How much money will you save by purchasing one of the two prominent hybrid SUVs? In short: you may not want to buy one if economics is the primary motivator (see analysis below).

The following table compares hybrid fuel economy to the regular engine fuel economy for the two vehicles. Note that the base model hybrid and the base model gas version are used for comparison. Therefore, apples aren't fully being compared to apples: the Ford Escape Hybrid comes with only an automatic transmission while the base gas model comes with a manual, and the Toyota Highlander Hybrid comes only with a V6 and is 4WD, while the base model has a 4-cylinder engine and is 2WD.

The fuel efficiency stats are clearly in favor of the hybrid-electric versions of both SUVs, especially in reference to the city miles per gallon, due to the inherent ways that the higher-tech vehicles operate. But how much more will you pay for this higher mileage? See the table below.

As is shown, both hybrid vehicles command a lofty premium over their corresponding base gas models. Often, the hybrid premium is calculated above the next most expensive model, which can be somewhat misleading, but also somewhat understandable. It is misleading because the next most expensive model often has luxury features and is thousands above the base model already (in addition, for comparison purposes, the hybrid looks better against it because feature-loaded models are often heavier and hence, have lower fuel economy numbers). This method is also understandable in that the base hybrid model often has more features (and power) than the base gas model, and can be seen as being more closely related to the feature-heavy models. However, this article is focusing primarily on economics and value: if one is interested in saving money by purchasing a hybrid, should they or should they just purchase the base gas model of the vehicle?

The following tables break down the hybrid "payback period" for both SUVs with two variables: how long one plans on owning and driving the vehicle and on the per-gallon price of gas. The tables are initially broken up by length of ownership; therefore, scroll down to the most likely amount of time you would own the vehicle. Then, the tables are broken down by model and price of gas.

For value-minded buyers, the results are clearly not good. Neither hybrid SUV, after a full ten years of ownership and sky-high gas prices, saves money or even breaks even with the traditional gas version. If one only cares about saving money when deciding whether or not to buy a hybrid SUV over the base model, it is recommended that they stick with the traditional version of the vehicle. If, however, one is looking at a more expensive model with more features, the hybrid version might end up being more of an investment. If comparing to a non-base model, calculate the hybrid premium over the preferred model and then subtract that from the most likely "Hybrid Savings" number. Pay close attention to features, however, when comparing.

This cost and investment analysis of hybrid SUVs completely ignores their environmental and societal benefits. If reducing pollution and decreasing the amount of foreign oil one uses is a priority, then that extra $5000 over the ownership period of the vehicle might be a small cost to pay. It is hard to put a dollar amount on the use of and pollution from dirty fossil fuels.

Even though the numbers may be discouraging, a hybrid SUV may still be right for you. Research. Visit a dealership. Think about your environmental impact and carbon footprint. Having a hybrid SUV will let you do what you love while polluting much less than comparable vehicles.