For city drivers, the Camry hybrid is a better deal
Updated: April 8, 2012
The new and refreshed 2012 Toyota Camry is hot. In January, US sales were up 53 percent compared to last year and Toyota has recently had to increase Toyota SE production because of demand.
Yet, the Toyota Camry hybrid is probably the best deal in the Camry bunch, particularly for city drivers, where congestion can make the hybrid Camry almost twice as fuel efficient as the 4-cylinder Camry. Plus, Consumer Reports called the Camry hybrid the fourth best drive quality amongst all vehicles.
So, let's take a deeper look at the Camry, and prove why Camry buyers should consider the hybrid, despite a new NYTimes study slamming most hybrid cars, including the Camry hybrid.
If you're going to spec out the Camry hybrid, it best compares to the LE or SE models, which means a price difference of about $3000 - $3500.
Ouch, right?
There is no doubt that forking out an extra 3 large is no fun, but for urban drivers, the Camry hybrid's better fuel economy could net you an extra $1000 every year in fuel savings. Thus, you could earn your hybrid premium back in about 3.5 years.
Most drivers, even less urban ones, should earn their hybrid premium back in around 5 years.
But we're not making a complete apples to apples comparison. For instance, the Camry hybrid offers both more horsepower and torque than the 2.5 liter, V-4s powering the base SE and LE, non-hybrid models. Thus, the Camry hybrid can often provide performance that is more V-6-like.
No, I'm not comparing the Camry hybrid to the V6. Rather, I'd say it falls somewhere in the middle, but the difference between the V-4 Camry and the V-6 Camry is $3,640. Split that difference and you're still left with $1820.
The point is, the Camry hybrid offers more performance than the V-4s, so the hybrid premium is even less. Perhaps as much as a $1000 or more.
Even without that extra $1000, the Camry hybrid still makes sense if you think long term, and I don't think 5 years is really that long term
Plus, in 5 years, the Camry hybrid will offer better resale value. So, not only have you recovered your hybrid premium, but you have more money to work with if you decide to trade-in for a new vehicle.
Or, if you decide to hold onto your Camry, you're going to start saving a significant amount of money every year on your gasoline costs with the Camry hybrid.
Still, it gets even better, particularly for urban drivers.
The current fuel savings is based on gasoline prices of just $3.44. In many urban areas, such as in California, gasoline prices are already much higher -- nearly $4.00 per gallon as of this post. That means an even quicker hybrid payback for many city drivers.
Likewise, by May gas prices are expected to increase another $.60, a further reduction in that hybrid premium.
Add an Israeli attack on Iran, or some other Middle East disruption -- something that has happened repeatedly in the last few decades -- and an even quicker hybrid premium recovery can be expected.
Ultimately, when you factor in the extra performance the Camry hybrid provides, the massive increase in city fuel economy, and the higher gasoline prices in many urban areas, the Camry hybrid is simply the best Camry for city drivers.
Trade in your Camry hybrid after 3 years and the resale value should bring you even in a worse case scenario. After 5 years, you're well ahead. Anything after that turns into rich, sweet gravy.
Add a gas spike into the mix, and urban Camry hybrid drivers will be laughing all the way to the bank, as conventional Camry buyers sit at the gasoline station, again -- something Camry hybrid drivers do significantly less often comparatively.
Yes, it's very hard to overcome that hybrid premium when you are at the dealership ready to pull the trigger on a new 2012 Toyota Camry purchase, but when you live in the city and factor in the extra hybrid performance and fuel economy, plus higher gasoline prices and the threat of gasoline spikes, that higher purchase price will fade from your memory before you know it.
Posted by dahcredyns, aka Chad Snyder.
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