Here’s How Much You’ll Really Save Driving a Hybrid vs. Gas Car Over 5 Years

Ed Aldridge / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Car ownership isn’t cheap, so when the chance for savings comes up, it’s hard not to jump on it. Hybrid cars are known for using less gas than traditional cars, which means more savings at the pump. But there are other factors — like electricity costs, financing charges and manufacturers’ suggested retail prices (MSRPs) — to consider.

So, how much money can you really save driving a hybrid vs. a fully gas-powered vehicle over five years? While it depends on the vehicle itself, your driving habits and where you live, here’s what you should know.

Typical Annual Cost of Ownership

According to AAA, the average annual cost of owning a brand new vehicle is $11,577 or $964.78 a month. This includes fuel, insurance, repairs, state fees, financing charges and depreciation.

AAA compared the typical annual costs of owning different types of gas vs. hybrid vehicles. The following assumes 15,000 miles driven per year:

• Medium sedan (hybrid) — $9,479
• Medium sedan (gas) — $9,956
• Compact SUV (hybrid) — $10,340
• Compact SUV (gas) — $10,279
• Medium SUV (hybrid) — $12,855
• Medium SUV (gas) — $12,584
• Pickup truck (hybrid) — $14,636
• Pickup truck (gas) — $14,781

Perhaps surprisingly, the total annual cost of owning a hybrid vs. a gas vehicle in the same vehicle class isn’t all that different. The comparison is:

• Medium sedan — A hybrid is $477 cheaper
• Compact SUV — A hybrid is $61 more expensive
• Medium SUV — A hybrid is $271 cheaper
• Pickup truck — A hybrid is $145 cheaper

Hybrid Vs. Gas: Typical Five-Year Costs (And Savings)

Vehicles depreciate — or lose value — over time. What this means is that even if two vehicles cost the same upfront, one could end up costing more due to depreciation.

As per Kelley Blue Book‘s total cost of ownership car calculator, here’s the typical five-year cost to own a hybrid vehicle:

• Toyota Corolla Hybrid (sedan) — $37,603
• Honda CR-V Hybrid (compact SUV crossover) — $45,818
• Subaru Forester Hybrid (medium SUV) — $53,824

And here’s the typical five-year cost to own a gas-powered vehicle in each of those same categories:

• Toyota Corolla (sedan) — $41,214
• Toyota Rav4 (compact SUV crossover) — $46,348
• Subaru Ascent (medium SUV) — $59,834

Taking the above numbers, these are the potential five-year price savings between gas-powered and hybrid vehicles:

• Sedan — Hybrid is $3,611 cheaper than gas
• Compact SUV crossover — Hybrid is $530 cheaper than gas
• Medium SUV — Hybrid is $6,010 cheaper than gas

You can use the KBB cost-to-own calculator to compare different vehicles and their average prices. Be aware of the following factors when considering five-year costs:

• Starting MSRP: A vehicle that has a higher price tag is bound to cost more. As per KBB, new vehicles cost an average of $50,080, while used vehicles cost an average of $25,512.
• Depreciation: Buying new means greater depreciation. If you purchase a used vehicle, however, you can expect lower costs — and more savings potential.
• Finance charges: AAA estimates annual finance charges are down 15% in 2025 compared to the year before. But your auto loan payment is based on factors like credit, down payment, term and loan amount.
• Location: The nationwide average cost of regular fuel is $3.071, as per AAA data. But gas prices vary by location. You might spend more in, say, Hawaii or Washington than you would in Texas or Florida.
• Driving frequency/distance: The average person drives 13,476 miles a year, or 1,123 per month, according to the Federal Highway Administration. The more you drive, the more often you’ll need to fill up at the pump.
• Wear and tear: KBB’s parent company, Cox Automotive, found the average person spends $838 on car maintenance and repairs. If you put more wear and tear on your vehicle, expect higher annual costs.

While the bottom line is different for everyone, the five-year cost of owning a hybrid vehicle is — generally speaking — lower than gas-powered vehicles. Still, it’s good to run the numbers and make some comparisons of your own before you buy. That way, you’ll know exactly what you’re in for.

Share This Article: