I just received the October, '08 Consumer Reports magazine -- it has a very in-depth analysis of hybrid ownership costs. They compared "regular" versus "hybrid" in several vehicle categories and manufacturers using their new "five-year owner-cost" formula.

Interestingly, the Prius only saved $2,000 over 5-years -- but the TCH saved $4,250 (the largest savings of any of the hybrids in their analysis). Unfortunately, the Highlander and all the Lexus models were in the red after 5-years.

They mentioned other factors that might further improve the picture (such as the increasing resale value as hybrids are "hot")...

...feeling really good...

 

There's been a lot of debate here on the upcharge for the hybrid version of the Camry, with estimates ranging from $1,000 to $4,000. Did CR give a figure (and how they came up with it)?

 

A couple of years ago, Consumer Reports made a mistake in calculating hybrid ownership cost and since then they have been scrupulous in their arithmetic. I didn't care for their MPG/$ term introduced in the spring but it has a certain ring of truth. It doesn't cover the MPG/$ on resale and lower maintenance costs. Still, they have gotten much more precise.

Bob Wilson

 

A scientist (or a CU reporter, for that matter) is someone who stands with his head in the oven and his feet in a bucket of ice and says "On average, I feel okay!"
It's a good car, but if they can figure out how to spend $3000 more to buy a car and end up saving $4000, that's got to be really good alchemy.
It's a good car, I enjoy it, but after seeing the claim in the first post (of the savings), I know there's no way I am going to waste five minutes reviewing the article.

 

The problem with these comparisons is that they do not factor in actual street price for these cars. I believe they were looking at the MSRP of the Hybrid and the V6 XLE, which are basically the same price. However, the reality is, even if you are paying only MSRP for the Hybrid, you can get the V6 XLE for $2,000 under MSRP because of incentives and bargaining power. C.S. is not factoring this in and thus they are underestimating the cost of the hybrid premium. But then again, when you go to sell your Hybrid, you may also enjoy the hybrid premium in the used car market, and this is not factored in either. Also, many people finance their cars so you must also factor in the interest paid on the hybrid premium as part of the extra cost.

The bottom line is, you don't get a Hybrid to save money, you get it to lessen your pollution footprint, make a statement about the environment, and send a message to the car manufacturers that fuel economy is as important as safety and reliability.

 

>> even if you are paying only MSRP for the Hybrid, you can get the V6 XLE for $2,000 under MSRP because of incentives and bargaining power <<

Tough to factor that in as pricing changes. My family has three Camry Hybrids. 2007 Anniversary Edition paid MSRP, 2008 fully loaded paid $4000 less than MSRP, 2009 fully loaded paid $500 less MSRP. There was a window in late 2007 early 2008 when the Camry Hybrid seemed like it was the Prius' ugly step sister and the dealers were giving great deals.

 

"The bottom line" for me is I feel good driving it. Having a "clean" car makes me feel good. Always seeing the upper 30's in MPG makes me feel good. Having the acceleration ability (when needed) of a V6 makes me feel good. Being able to drive over 600 miles per tank makes me feel good. The quiet makes me feel good. Watching the energy and consumption screens on the Nav equiped version I bought makes me feel good. Getting better MPG than most "econo-boxes", yet having more "luxury items" than most cars on the road makes me feel good. Having all the saftey equipment (traction control, skid control, ABS, etc) makes me feel good. Having the reliability of a Toyota (only ONE small insignificant warranty issue in over 40,000 miles) makes me feel good.

OH! And saving money makes me feel good also! Which I am also doing with the TCH!

 

Wow, what a difference a year can make. The Camry Hybrid is a good balance between fuel efficiency, luxury, comfort, safety, reliability and price. Of course, it is a jack of all trade, master of none. It is not a leader in any one category and thus it does not stand out. No wonder it took some time to catch on.

People who want the best fuel economy possible would want a Prius, people who want the best luxury and comfort may buy a Lexus, people who want the best safety and reliability may buy a Sienna, people who want the best price may buy a Yaris. There is probably no car that is as well balanced as the Camry Hybrid, but as I said, "balance" does not stand out in a crowd.

 

Bingo. I bought my 2007 for $3500 under MSRP (200 about invoice).

 

Well the balance issue might be the reason but I offer an alternative.

When the TCH first came out, there were a number of purchasers who bought the TCH as their first hybrid because the Prius was too small and they wanted a "real" car (I am one of these people). In addition, when the TCH first came out gas was about $2.30 and had spiked at $3.40 during Katrina only. This price of gas was still 'low' enough for people to not flock to a hybrid.

As we moved through 2007 and into 2008 the price of gas nearly doubled and spiked around $4.40. This drove people wild and they started purchasing hybrids like crazy (around April of this year -- or so). This was a case of too little too late for these folks and they stripped out supply. The lack of supply held the price at (or above) MSRP where as before the TCH was in no more demand than any other car (possibly less due to more expensive technology increasing the price) and one could make a deal.

As gas now drops, I am sure we will see a decrease in hybrid sales (as long as gas stays 'lower' and continues to drop -- now at about $3.75). This in turn will allow people to get better deals once supply returns to capacity.

Just my thoughts...(gas prices are those of the greater NY area).

Mike