Hybrids economical? Not in every sense

Hybrids may be tops when it comes to saving gas, but they're far from the best choice for budget-conscious car buyers, a new study says.

The Chevy Aveo leads the ranking of the best new-car values based on "total ownership cost" as calculated by automotive data firm Edmunds.com. Based on $5-a-gallon gas, the highest-ranked hybrid was the Honda Civic at No. 10. The Toyota Prius hybrid — No. 1 in the government's fuel-economy rankings — came in 26th. (See the rankings at www.edmunds.com.)

Hybrids, powered by both an electric motor and a gasoline engine, typically get better gas mileage than non-hybrids but carry higher price tags.

A 2008 Aveo hatchback with manual transmission lists for $10,235 and is EPA-rated at 27 miles per gallon in combined city-highway driving. The Prius, by contrast, has combined fuel economy of 46 mpg and a suggested retail price of $21,500 — and sells for more because of high demand.

The study's purpose "isn't to discourage people from buying hybrids," said Jesse Toprak, head of industry analysis for Edmunds.com. However, "consumers ought to consider regular-engine small cars if their goal is just to save money."

Edmunds' findings are at odds with a recent analysis by Consumer Reports, which ranked both the Prius and the Civic hybrids among the 10 cars that offer "the best fuel economy for the buck."

Consumer Reports only included vehicles that get its "recommended" rating, which is based on reliability, safety, handling and other factors in addition to sales price and fuel economy. That's part of the reason why the Aveo and the Toyota Yaris didn't make CR's fuel-economy cut (consumerreports.org.)

"We didn't want to send people to cars that are going to let them down in other areas," said Rik Paul, the magazine's auto editor.

One car-shopping strategy that's almost certain not to make sense financially is to trade in a late-model SUV or pickup for a smaller, more fuel-efficient vehicle. Due to plummeting demand, trade-in values on these gas guzzlers have been falling fast — some dealers won't accept them at all. That can wipe out the gas savings achieved by switching to a smaller car, auto firm Kelley Blue Book said last month.