Nobrainer’s Think Tank

Let’s suppose you’re ready for a new car. The Toyota Camry is a popular place to start. It has been the best selling car each of the last four years. And aside from a one year hiccup, it has held the title every other year of the last nine. In 2007, Toyota adds a hybrid to the Camry line-up. A more efficient car in a time of high gas prices sounds like a win-win proposition. Here I insert my best local newscast-type question, “But is it really? The story at eleven!”… er, right now. Please read on and remember to visit my sponsors… that I don’t have. Now I’m just embarrassing myself. Moving on.

For 2007, there are three powertrain options, there is the 158HP, 28.5MPG 4 cylinder, the 268HP, 26.5MPG V6, and 192HP 39MPg hybrid.

Unfortunately there aren’t really any apples-to-apples comparisons to be made here. But there are a few things to consider.

Here’s the key to the debates:

For an average driving range of 15,000 miles per year, the 4 cylinder needs to drink 526 gallons of gasoline. On the other hand, the hybrid, which is 37% more fuel efficient, imbibes a mere 385 gallons per annum. The net savings are 142 gallons, or 182 gallons compared to the V6. So how much you save, depends on the cost of gas. But consider that everyone’s goal is to bring the cost down. So that 142 gallon savings, pockets you what, $300 or maybe $500 a year? Certainly if you expect gas prices to be well above $3/gallon for an extended time, you’ll be saving a whole lot more.

Initial reports I read suggested the hybrid would be similar to the LE model. Considering that the hybrid stickers at $25,900, and the LE starts at $20,500, it’s obvious that if you merely want to save money, sticking with more basic options will get you a lot farther than having the latest powertrain.

Things work out a bit better if you were initially leaning toward the LE V6, which starts at around $23,000.

To be more fair, the options on the hybrid is more top-of-the-line, probably more closely matching the XLE. The 4 cylinder is $24,425, whereas the V6 is $27,520. In that context, the hybrid fits in-between in both cost and horsepower. The main difference I see in equipment (aside from the engines) is that the XLE comes with a sunroof.

This of course completely ignores any difference in maintenance costs, or any tax incentives that may be on the table. It underscores a simple point. If the price at the pump is pinching you too much, the best prescription for your pocketbook is to cut back on the frills.

But what about maintenance costs? Let’s first face facts: if you buy this car you’re basically a guinea pig. Fortunately, Toyota has a great reputation. They also offer a pretty good warranty, which is 8 years/100,000 for hybrid related components.

And if you act fast, you can get a sizeable tax credit of $2,600 (credits for other hybrids are listed as well). As sales increase, though, the credit decreases.

If you can get the credit, I definitely say forget about the XLE. The options just aren’t that different. 192 horespower is plenty. Plus you get the fuel savings.

Also with the credit, the hybrid stacks up pretty well with the V6 LE.

Two more things to consider. If you are one of those men with a wife who refuses to pump her own gas, the 2007 camry has a 17.1 gallon gas tank. The improved fuel economy will cut your trips to the gas station for your wife by about 1/3. Also, I’m sure someone will hack the system so that you can plug into the grid to charge the batteries. That could be invaluable if there’s ever a major gasoline supply disruption.

So I know there’s a lot of speculation here and not a lot of hard numbers. Potential gasoline savings are not the best reason to buy a hybrid. If you’re in the mid-sized sedan market, I’d suggest giving the hybrid some serious consideration (although I might wait for the 2008 model, to let the first-year kinks get worked out).