It Finally Makes Economic Sense to Buy Hybrids

Almost.

According to a study by Edmunds.com cited in the WSJ, at current fuel prices, it would take 3.5 years for the costs of owning a Toyota Prius, the most fuel-efficient car out there, to equal that of owning the similar but gas-guzzling Camry.

That's on the assumption that gas prices stay at around $4 and that you drive 15,000 miles per year. I no longer own a car, but back when I did, I typically put 20,000 miles-per-year on it in driving from Long Island to Manhattan. For someone like my old self, it would take 2.5 years for the costs to match up. (If gas prices go up to $5 per gallon and you drive 15,000, it would take 2.7 years.)

And when you factor in a potential 5 to 10 percent insurance discount, hybrids start to make even more sense.

Here's the the study from Edmunds, you can play around with the numbers yourself to tailor the calculations to your driving habits.