For the average retired person who drives about 12,000 miles a year, one of these new gas/electric hybrid cars will save roughly $700 a year in gasoline costs. For that savings, you can expect to spend about $3,500 more for the hybrid compared with a conventional car.
So, how does the average person do the math to evaluate this as an investment? They figure out that it takes five years to reach break-even and recover in gas savings the extra money spent on the hybrid. So they opt for the conventional gas-only car.