Fuel Prices Affect Hybrid Payback



Source: http://www.autoobserver.com/2009/07/diesels-paying-back-quicker-than-hybrids-edmundscom-reports.html

Edmunds Auto Observer - July 29, 2009

Situation
Edmunds.com reviewed payback times for hybrid-electric and diesel-engine vehicles
Average premium for all hybrids is $4,981
Premiums ranging from Toyota Camry Hybrid at $289 to Lexus LS 600h L at $15,969
Average diesel-engine premium, meanwhile, currently is just $2,360
Gas and diesel fuel prices staying low, and uncharacteristically consistent, during summer
Significant Points
Latest round goes to diesel
Two factors currently working in diesel's favor:
Diesel-fuel prices have dropped and price "premium" for diesel technologies is low
As gasoline prices stay low, hybrids struggle to justify typically higher initial-cost premium
Lower cost premiums / availability of tax rebates, diesels much better payback proposition