The Biggest Bang for Your Petrobuck

Washington is finally tackling fuel-economy reform. But any payoff is years away. How best to save money on gas right now? The answer may surprise you.

After two decades of gas mileage running in reverse in America, the Senate finally passed legislation Thursday to boost fuel economy to 35 miles per gallon by 2020, up from 25mpg today. Predictably, Detroit is screaming bloody murder, claiming the new regs will bankrupt them and vowing to head the bill off in the House when it takes up the fuel-economy debate as early as next month. The reality, though, is that tougher new fuel rules are coming down the road. And for those of us suffering sticker shock at the gas pump (which is to say, all of us), isn’t it about time?


But we really don’t want to wait 17 years to get that 35mpg car. We need relief from $3 gas here and now. So what’s the answer? To a quarter-million Americans last year, the solution seemed simple: buy a hybrid. Even the automakers see gas-electric cars as essential to meeting these new fuel rules. But, it turns out, when it comes to saving money on gas, hybrids offer only delayed gratification (much like these new rules being debated in Washington). Why? Because hybrid versions of car models cost between $1,500 and $5,800 more than their conventional counterparts, according to an analysis for NEWSWEEK by auto researcher Edmunds.com. So you aren’t getting a break on runaway gas prices until you’ve paid off that hybrid premium. In the case of the $41,895 Lexus RX 400h (33mpg city; 28mpg highway), that takes 13.3 years, Edmunds figures. The quickest payoff comes from the No. 1 hybrid, the $22,755 Toyota Prius (60mpg city; 51mpg highway), which takes just over a year to cover its premium in gas savings.

The bottom line: If you want to save money on gas right away, don’t buy a hybrid. Buy a small, fuel-efficient regular car. A Toyota Corolla, for example, can be had for $16,135, and you’ll immediately benefit from its 32mpg city and 41mpg highway mileage. For well under $20,000, you can also get 40mpg on the highway from the Toyota Yaris, Mini Cooper and the nonhybrid Honda Civic. These mundane models might not be hybrid hip, but they give you the biggest bang for your petrobuck. “If you want a car to commute and save money on gas,” says Edmunds researcher Alex Rosten, “get the smallest car possible.”

Newsweek