The price difference between a Camry LE and a Camry Hybrid LE is about $3,000, not $8,000. At that price and a difference between 30 and 40 mpg average at 25k per year is 833-625 = 208 gallons X $4/gallon = $833/year, 3.6 years to pay it out. Pretty short in my book.
As for the Passat, it won a recent comparison test by Car and Driver, it’s a good car with yet-to-be proven reliability. It’s popular and well-reviewed.