2006 Toyota Highlander Hybrid Preview

The Price of Efficiency

This hybrid SUV looks and drives like a regular Highlander and offers great fuel economy, but at a $7,440 premium.

Should You Buy This Car?

As mentioned above, one of the main reasons to buy a hybrid vehicle is to conserve fuel and save money on gasoline. Less fuel is required to power two wheels than four, so the front-wheel drive Highlander Hybrid is the most efficient, getting 33 miles per gallon in city driving and 28 mpg on the highway, according to Environmental Protection Agency estimates. The four-wheel drive model gets 31 mpg in the city and 27 mpg on the highway.

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Compared to non-hybrid Highlanders, the biggest increase in efficiency comes in city driving, where the hybrid's electric motor can run on its own at low speeds, use regenerative braking to recharge the battery, and allow the gas engine to shut down at traffic lights or other temporary stops.

A non-hybrid Highlander equipped with the V6 engine and front-wheel drive gets 19 mpg in the city and 25 mpg on the highway, while the four-wheel drive non-hybrid version gets 18 mpg city and 24 mpg highway, according to Toyota. A standard highlander equipped with the smaller four-cylinder engine gets 22 mgp city/27 mpg highway in two-wheel-drive guise and 21 mpg city/25 mpg highway with four-wheel drive.

Toyota estimates that the average fuel cost of the hybrid is $932 per year. The same cost for a regular Highlander ranges between $1,432 and $1,635. So even if you save $700 per year owning the hybrid, it will take about seven years to recoup its $7,440 higher sticker price, unless the price of gasoline escalates exorbitantly.

For the short term, there is another economic incentive to buying — though not leasing — a hybrid. For the rest of 2005, people who purchase a hybrid can take a one-time $2,000 tax deduction off their federal income tax. But you better act fast, as the clean-fuel vehicle tax deduction will be reduced to $500 in 2006 and will end in 2007.

We recommend the Highlander Hybrid. If you think it's worth it to spend more money up front to consume less fuel and pollute less over the long term, then the Highlander Hybrid is worth a serious look. Toyota's other hybrid, the Prius has proven reliable, so reliability shouldn't be a concern for the Highlander Hybrid. Those considering a more fuel-efficient SUV, take a one out for a test drive and see for yourself how seamless and unobtrusive the hybrid technology really is.

In any event, get ready for a hybrid future. They are coming and the world will be a better place because of them.