Model: 2010 Lexus HS 250h Premium; 187-horsepower 2.4-liter 4-cylinder engine/electric motor and continuously variable automatic transmission.

Base Price: $36,970

Options: Wide view front monitor with backup camera, Mark Levinson audio system with 15 Speakers and 6-disc in-dash DVD changer, Navigation system (hard disk drive navigation system, Lexus Enform with destination assist and a one-year trial subscription to eDestination, Lexus Insider, voice command, XM NavTraffic, XM NavWeather, and XM Sports and Stocks with 90-day trial subscription), Tech package (lane-keep assist, dynamic radar cruise control, heads-up display, park assist with front and rear sensors, and pre-collision system with driver-attention monitor), Cargo net, Trunk mat, and Premium floor mats

Price as Tested: $46,547

Total Miles Tested: 1,041 miles

Fuel Economy: 34.6 mpg

Editors’ Notes

Tom Appel: I am not sure how Lexus buyers are better served by the HS 250h than they would be by a roomier ES-based hybrid. That said, the HS works fine. It's comfy, convincingly high end, and most importantly, returns decent fuel-economy numbers. It does not, however, return outstanding fuel-economy numbers, which may be a problem. At 35/34 EPA city/highway mpg, the HS is literally crushed by the miserly 51/48 mpg numbers posted by its Toyota Prius cousin. Toss in a sticker price that can be as much as $18,000 higher and you have a bunch of math that doesn't really add up. Buy the HS because you want a little luxo cruiser that's easy on the planet, just don't expect your calculator to make sense of the deal.

Damon Bell: I don't see any compelling reason to choose an HS 250h over a decked-out Prius. Instead of delivering a "best-of-both-worlds" balance between economy and luxury, the HS feels compromised at every turn. Concessions to fuel savings blunt the upscale feel, yet don't deliver outstanding economy. The HS is chock-full of gee-whiz gadgetry, but is actually smaller and more cramped feeling than a Prius in some crucial dimensions (such as driver headroom). Our loaded HS 250h tester stickered at a sobering $46,547. For that money, I could be shopping Lexus' own RX 450h midsize-hybrid SUV, a much more substantial vehicle that doesn't even give up much in fuel economy.

Ed Piotrowski: What's a decent car at a $37,000 starting price is manifestly insane at $46,550, the MSRP of this test car. Loaded Prius and Ford Fusion hybrids are about $15,000 less, are roomier inside, only slightly less luxuriously appointed, and get much better fuel economy. The only reasons to consider HS over the Toyota and Ford are Lexus' superior warranty coverage and kid-gloves customer service. I fail to see the appeal here.

Don Sikora: As impressed as I am with the new Prius, I'm somewhat bewildered by what Lexus is trying to accomplish with the HS 250h. The HS has more power and feels a bit quicker than a Prius, but not enough to make up for the lower fuel economy the Lexus returns. Plus, the "premium" Lexus feels noticeably smaller from the driver's seat, and with its small trunk, offers much less usable space than a Prius. In my test, the HS returned about 39 mpg, yet I consistently get better than 40 mpg in our long-term VW Jetta TDI, a car that costs only about half as much as this Lexus. Ultimately, the HS 250h seems to be compromised by trying to be too many things at once, and while the car is competent and pleasant, it doesn't really excel enough in any area to make it a compelling choice, especially at more than $46,000 as tested.