The good news is that the AAA reports the national average price for a gallon of premium unleaded gasoline dropped by nearly 20 cents over the past week. The bad news is that it still costs a budget-stretching $4.22 per gallon, with analysts predicting that even if the Strait of Hormuz would suddenly reopen to full traffic it would likely take more than a year(if ever) before fuel costs again approach $3.00.
Perhaps not surprisingly, interest in fuel-efficient gas/electric hybrid- and full-electric powered vehicles is becoming, well, electrified. A recent Cars.com survey found that 52% of shoppers say rising gas prices are prompting them to consider a battery-electric or plug-in hybrid vehicle.
One byproduct of sky-high petroleum prices is that the cost premium between new conventional and electrified rides has narrowed considerably in recent months.
For example, the price difference between a base-model Toyota Corolla at an estimated 35 mpg and a Toyota Corolla Hybrid at 50 mpg stands at $1,850, with the difference in running the two variants 15,000 a year being an estimated $650 a year at average gas prices, according to the EPA’s fuel cost calculator. That means it would take a hypothetical average driver 2.85 years to recover the added up-front cost at the pump versus 4.65 years a few months earlier.
Going a up a notch in vehicle size, the cost difference between a midsize Honda Accord Hybrid and its gas-only equivalent is currently $5,400, but afford an annual fuel savings of $700. That brings the time it takes to recover the initial price difference down to 7.71 years instead of 9.81 when gas was at $3.00 per gallon.
Among SUVs, the price spread of $1,350 between the Hyundai Santa Fe and Its Hybrid iteration can now be recovered in a mere 1.50 years vs. a still-amenable 2.08 years a few months ago.
A bigger and costlier choice, a Kia Carnival minivan is rated at 32 mpg for the standard version and 21 mpg for the hybrid, with the cost premium for the latter being $4,000. The Hybrid, however, saves an owner $1,000 a year in fuel costs, which means it would take 4.00 years to recover the difference in their sticker prices. Back in February that would have been 5.33 years.
Running costs vs sticker-price markups are much more difficult to figure with plug-in-hybrid models, however. A plug-in version packs a larger battery that enables it to run exclusively on electricity for a certain number of miles – typically in the 30-to-40-mile range – with those having modest commutes or who use the vehicle strictly for around-town rarely visiting a gas station. Those racking up considerably higher miles – especially those who frequently neglect to connect their vehicles to the grid for recharging would take much longer to cover the up-front cost.
Someone considering a Mitsubishi Outlander Plug-in Hybrid over the gas-only version would face an initial $9,600 price bump, which at the EPA’s current estimates would register an annual $800 fuel-cost savings. That means a steep average 16.5 years to recover the markup at current average fuel prices. But those who never exceed the vehicle’s 44-mile battery only range could at least theoretically whittle down the time to recover by nearly half, to 8.83 years.
What about full-electric cars? The Chevrolet Equinox EV costs $6,194 more than the standard model, but costs an estimated average $1,650 less to drive at 15,000 annual miles. That’s just 3.75 years to recover the higher up-front cost at today’s gas prices; prior to the current conflict it took 6.52 years.
Of course any comparisons with regard to net long-term savings buying electrified vehicles are subject to a variety of variables. They include the up-front price difference, how a non-hybrid model’s standard features compare to the hybrid version, any available automaker’s incentives, the annual number of miles driven and, especially, local gas and/or electricity prices.
The bottom line here is that car shoppers looking to save money at the pump have to do their homework to compare all of these aspects via online sources before setting foot onto a showroom floor. And realize that it may not be financially advantageous to trade-in one’s current vehicle – particularly one that’s already paid for – for a shiny new hybrid or EV solely for the sake of lower per-mile costs.
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