New car! Corolla NOT Prius

We finally did it. We decided to NOT get a Toyota Prius 06, and opted for a much cheaper Toyota Corolla 06. In the end, I think we made the right decision. Based on gas savings, the Corolla gets 30 mpg city / 38 mpg highway. The Prius supposedly gives you 60 mpg city / 51 mpg highway. However, the Prius costs about $10,000 more than the Corolla. To breakeven with that difference, it would take about 20 years of gas savings on the Prius to realize the extra $10,000 spent. This assessment was based on the CNET Hybrid Car Fuel Cost Saving Calculator.

Hybrid comparison

Article shows ROI for Toyota Prius

In the MSN Money Central article entitled “What driving a hybrid will really cost you“, it does an actual calculation for return on investment if you decided to purchase one of the hybrid vehicles as opposed to their gas-only counterparts. According to their study, the only vehicle that will save you money over a five year ownership period, is the Toyota Prius.

If you really wanted to see how much a new Prius or hybrid will save you as compared to your current vehicle, you can head over to the Hybrid Vehicles Gas Savings Calculator. In my case, I would save $1000 per year on gas, if I decided to get a Toyota Prius.  Since, the Prius costs about $21,000 to purchase, it would take about 20 years to break even.  If I decided to trade in my current vehicle, I could realize a break even point at about 10 years. All of this assumes that gas prices will stay the same over the 10 year period, which I highly doubt.  Using the gas savings calculator, I calculated that if I wanted to break even at 5 years, the price of gas would have to sky rocket to $6 per gallon. Any bets on whether price of gas will get that high?  Five years ago, we were at $1.20 per gallon. It’s more than doubled in five years. If that trend continues in the next five years, that initial investment today in a Prius might not look so bad.

Gas Price Gauging = Toyota Prius

Can you believe the price of gas now! In Rochester, MN it is at $2.47/gallon. For me, that means paying $30 for a full tank of gas. In my opinion, ridiculous. I am seriously considering getting a hybrid vehicle like the Toyota Prius. The demand is so great for this vehicle that people who have the money to buy the car are making it into a business. I’ve heard that some people are buying them at $20,000 a piece, and profitting by selling them at $25,000 each. Yes! You heard this right. A used car that actually appreciates in value once it leaves the dealer’s parking lot. Who would’ve thought that day would come.

Related:
Experimental Hybrid Cars Get Up to 250 Mpg