The automotive industry is changing, and has been for some time now. Electric vehicles are no longer the weird, left-field choice, with most mainstream automakers now offering at least one fully electric vehicle, if not a complete range.
While common deterrents that put people off switching to an EV have largely been put to bed by this point — a prime example being range anxiety, which science has proven unfounded – many motorists are still nervous about making the jump from gas to electric. For these customers, a hybrid might make more sense, be that a conventional hybrid or plug-in, as the user still retains that familiar gas powertrain, but receives electrical benefit. It sounds like a win-win, but there are downsides to buying hybrid, and one of the more prominent negatives is that they command a premium over their gas-only counterparts.
Sure, hybrids are more economical, and will save you at the gas pump, but have you ever stopped to consider just how far you’d have to drive in order to realize this saving? If not, don’t worry, as Consumer Reports (CR) has. According to the company, neither the Lexus TX nor the Honda Accord Hybrid will save you money — at least, not for a comically long time — which makes buying them in place of gas variants a poor financial decision.
That’s not to say CR doesn’t otherwise rate these two models highly — it does. It just means you’d be wiser spending your money on the gas model from a purely fiscal point of view. Let’s dive into the math to demonstrate CR’s point a little more clearly.
The Lexus TX Hybrid
The first model CR highlights as a hybrid that won’t save you money is the Lexus TX Hybrid. The TX is the brand’s luxurious and family friendly three-row, which — excluding dealer and destination fees – kicks off at $57,890 for the base 350 model, or $71,410 for the cheapest hybrid — the TX 500h F Sport Performance Premium AWD.
That’s quite the gulf in price, and a difference you’ll likely never make up in savings at the pump. That’s because the base TX returns 23 mpg combined, while the Hybrid nets you a combined average of 27 mpg. No wonder then, that CR claims it could take up in the region of 60 years before any differences in fuel costs justify the leap in price.
In truth, that’s not the appeal of the TX Hybrid. These are described as performance hybrids, and as such they bring about a different suite of benefits. Chief among said benefits is an additional 91 horsepower, F Sport Handling features, 22-inch alloy wheels, and cosmetic tweaks too.
We were impressed with the hybridized TX. It’s surprisingly powerful, impeccably trimmed and equipped, and it’s a brilliant family car. But there’s no ignoring that huge sticker price, so if you’re looking for a hybrid that saves you money, you’re better off looking elsewhere.
The Honda Accord Hybrid
The Lexus TX is a huge high-end three-row, so perhaps its lack of frugality is no surprise. But a humble Honda Accord Hybrid should really go easy on the gasoline, shouldn’t it? Well, according to CR, it doesn’t. The price difference isn’t as huge as with the Lexus, but CR points out it could still take around 12 years before the Accord Hybrid’s fuel savings justify the bump up in price.
On the highway, the gas-only Accord LX returns 37 mpg, while the Sport Hybrid achieves 41 mpg. However, the hybrid is noticeably better in terms of combined and city driving figures, which could make the hybrid more appealing to those who spend most of their time in traffic. The problem is, the two cars’ purchase prices are separated by $5,400, and that buys a lot of gas.
The price hike is largely because Honda has provided its Accord Hybrid models with an extra dose of equipment, including features such as larger alloy wheels and wireless Apple CarPlay, so it’s actually quite difficult to do a fair trim-to-trim comparison. Once again, the fact that the hybrid model’s efficiency won’t cover its purchase price doesn’t make it a bad buy, or even a poor-value proposition. It just won’t save you money at the pumps.
When buying hybrid makes sense
Not every hybrid is in the same boat as the TX and Accord, and many offer realistic savings in comparison to gas-powered models, particularly if you plan on keeping them for a good few years. Kelley Blue Book (KBB) gives us a solid example in the way of Toyota’s humble Corolla, which in LE guise costs $23,125, minus the destination cost.
Should you opt for the Hybrid LE, you’ll be paying $24,975, or an extra $1,850. According to KBB, and assuming the car covers 15,000 miles a year, the gas-powered Corolla will use $1,434 of fuel each year, returning an average of 34 mpg. The hybrid model, on the other hand, averages a combined 50 mpg, and so would only command $975 per year in fuel expenses.
That’s an annual difference of $459, so within four years, the extra cost would virtually have been paid off in fuel costs alone. Sure, if you’re planning to keep it for just two years, or you only cover 5,000 miles per year, then things pan out differently. But that’s why you need to look at comparisons like this in your own perspective, rather than just relying on other folk’s experiences and opinions on such matters.
There’s resale data to consider, too
So far, we have simply weighed up whether or not a hybrid model can return enough in fuel savings to justify its higher initial purchase cost. And while it some instances it may, in others — such as the TX and Accord — it doesn’t, at least not within a reasonable timescale. However, there is more to it than that.
Resale data is also incredibly important. For example, if a hybrid model depreciates just 5% over three years, whereas the gas model loses 20% of its initial value in the same timeframe, you’ll probably be better off buying the hybrid, even if the economy gains are nominal. This works the other way around, too. For instance, a hybrid model might wind up saving more than its price difference in fuel bills, but if it tanks in price while the gas model doesn’t, that needs to be factored in. To put this theory to the test, let’s consider the Lexus RX 350 and RX 350h.
According to CarEdge, the RX 350 will lose 33% of its initial value in the first five years of ownership, based on 13,500 miles per annum. Now, in the case of the hybrid RX 350h, that figure jumps to 41%, equating to a further 8% of value lost in the same time frame. In real terms, that 8% equates to $5,070. Couple that to the fact the hybrid model costs more in the first place — $1,070 more according to CarEdge’s calculations — and regardless of any savings made at the pump, that hybrid model is eating away at your wallet at a far faster rate than the old-school gas variant.
So, why would anyone buy a hybrid?
The above might make buying a hybrid seem like something of a daft decision, unless of course you’re planning on keeping that TX for decades, or you want to turn it into the next one-million-mile Lexus. Clearly, that’s not the case, as cost-per-mile and efficiency ratings aren’t the only reasons to consider buying a hybrid.
For starters, it’s a step toward electrification — a stepping stone, if you like — before diving in and buying a full EV. Hybrids provide a level of familiarity, which is an often-overlooked metric, that EV-skeptics just can’t get from a fully electric car.
Secondly, they are still more efficient. In the case of the Accord, a new gas-only LX model returns an average consumption rating of 32 mpg, whereas the hybrid EX-L model returns 48 mpg combined. Regardless of the fact it may take years for the fuel savings to add up, forking out less per month on gas is still a benefit, especially if you’ve leased the new car, as opposed to purchasing it outright.
Finally, hybrid cars can be great for towing too. For example, the 2025 RAV4 Hybrid tows 1,750 pounds, whereas the gas-only model offers a 1,500-pound capacity. Not a world of difference, but it might be enough for some buyers to justify that extra expense.
