Retail hybrid car prices as suggested by manufacturers (better known as MSRP) are decided by the car makers and advised to the car dealers to be the base price guide in dealing with public sale. Dealers providing fleet sales to corporate buyers have also the invoice price, or that amount paid by the dealers to the automakers, better used for wholesale purchases being made from the dealers.

While these two serve as guides for the car buyer, prices may increase due to additional costs for non-standard features or add-ons to the vehicles. There are also charges for delivery to move the vehicles to the final destination where buyer is situated. Thereafter, sales taxes, marketing costs, registration costs and other costs may be added by the dealership over and above the MSRP or invoice price.

Price Ranges

As of this writing, at the bottom rung is the Toyota Prius, most reasonably priced at suggested retail of $22,175, exclusive of tax incentives that come along with purchases of hybrid, environmentally-friendly units. At the high end of the spectrum will be the 2007 Honda Accord Hybrid 4-wheel drive four-door sedan, at around $31,000. Both these prices do not include delivery or destination pricing.

The Array of Hybrid Car Prices

In between the Prius and the Accord, the Camry Hybrid from Toyota is priced at around $26,000. The Saturn Aura Green Line Hybrid starts at $22,695, a highly recommended purchase by many hybrid enthusiasts. The Honda Hybrid FWD four door sedan starts at $22,600 exclusive of destination costs.

To give you a gauge on SUVs, the Mercury Mariner Hybrid four-wheel drive SUV starts at the bottom with $27,515, followed by the Ford Escape Hybrid 4FD SUV at $27.250. Packed and loaded with all amenities you can ask for, the 2007 Toyota Highlander Hybrid can be yours for $32,500.

Price Indicators

The brand name comes with the package. With such prestigious car makers as Toyota, Honda, Ford, Saturn, Mercury, Volkswagen, Mercedes, the name comes at a premium. Brand name notwithstanding, the full array of features and accessories not included in standard units also impact on the final price of the hybrid car you are purchasing.

Hybrid car prices are definitely higher than for conventional models. That’s because the manufacturer requires more resources to produce the hybrids with their added valuable features - these all add up to the cost. It is envisioned, though, that the fuel savings from hybrids will more than compensate for the usually higher purchase price compared to pure fossil-fuel models.

With the kind of research and development, not to mention the extensive testing done on hybrid or alternative-fuel models, it’s not surprising that hybrid car prices are more expensive. And car manufacturers do not stop at the hybrid or fuel-efficiency features; they also try and pack the hybrid with the latest in electronics for the interiors, dash and instrumentation and everything.