Yesterday I talked about if Quality of Life was important. Today I wanted to discuss whether buying a Toyota Prius is worth it. I talked about it earlier in the week Trent from the Simple Dollar’s decision to buy a Toyota Prius. I don’t have to reiterate that Toyota Prius are the HOT cars of the year. People love the idea of gas savings after last summer’s $4/gallon. But is it really worth it to buy a Toyota Prius? Well I made a spreadsheet comparing it.
What did I find? Well let me explain a few assumptions in the table. I assumed that someone was looking for a compact car, because that’s the category the Toyota Prius is in. A person buying a Prius would not buy a Honda Accord, Toyota Camry, Nissan Altima, etc. They were looking for something small and gas sipping.
Thus I decided to compare the Prius to the Toyota Yaris, Nissan Versa, Hyundai Accent, and Chevy Aveo. All compact cars with relatively good gas mileage AND similar size. All of these cars were assumed to be bought brand new in my Zip Code, thus the prices might vary across the US. I also used Edmunds.com for Invoice pricing. I realized that some cars like the Chevy Aveo and Hyundai Accent could potentially be cheaper than invoice after incentives by the dealers. However, for research purposes, I decided to stick with the assumption that all cars would be negotiated the same and be bought for invoice price.
I also will acknowledge that buying used models of these cars would yield an even bigger savings. However, I would prefer to not muddy up the comparison of cars buying adding another variable.
What did I find? Exactly what I suspected. That it’s not worth buying a Toyota Prius is substantially more expensive than the other cars for yes better gas mileage. But I assumed people would drive 12k miles/year. Assuming that gas was $2, $4, and $6, it would take Prius owners a minimum of 6 years only city driving @ $6/gallon to break even with Hyundai Accent. If they drove 12k on the Highway, it would take a minimum of 16 years @ $6/gallon to break even with the Chevy Aveo.
Ouch. Okay so buying a Toyota Prius not a frugal move, though it would seem on the surface. Rather it’s makes the owner feel better, but in truth, Trent would have saved more money buying one of these cars and banking the extra cash.
But like I argued previously, sometimes it’s not about the money. The Toyota Prius makes Trent feel good, thus his quality of life is improved. The extra cash spent on a Prius versus one of the other cars made him happier.
This is also not including the cost of replacing the battery on the Prius one day. I’ve heard, though not researched the exact cost of the battery. I’ve heard it will be several thousand dollars. So along with regular maintenance, the Prius has a large battery bill looming.
Though I had heard from others the Prius was not worth the gas savings, I hadn’t actually done the research. I realize that if you drive more than 12k miles a year, you’ll make up the savings sooner. But to an average joe, I have to wonder if the savings is worth it? Or is a Prius just a status symbol?
34 responses so far ↓
1 Barb1954 // Mar 31, 2009 at 9:00 am
After going to the Chicago Auto Show this year and looking at literally hundreds of cars, I don’t think there is any car that can beat the Prius on miles per gallon. So for people who care about the environment and are willing to put their money where their mouth is – a Prius is worth it.
Riding in my sister’s Prius is like gliding over the road. It feels like a hoover craft — no road bumps or noise. I loved it.
2 sara l // Mar 31, 2009 at 11:00 am
If you’re comparing equal cars the Corolla, Civic, etc would have been a better range of cars. The space in an Aveo or Yaris (2 cas I’ve been in) don’t begin to compare. The leg room in a Prius actually exceeds that of a Corolla. Within the hybrid set Prius and Civic Hybrid are in the same class.
If money spent is your only barrometer the first few years of a Prius aren’t worth it. It takes something like 3-4 years for the increased cost to balance the gas savings. But if you’re looking at emissions, what a car can hold (people & stuff), the experience of driving a car, etc then it’s a different story.
Full disclosure-we just bought a Prius.
3 Mary // Mar 31, 2009 at 11:01 am
“. So for people who care about the environment and are willing to put their money where their mouth is – a Prius is worth it. ”
Except if you are buying a new Prius you aren’t exactly recycling, reducing or reusing. A 10 year old Saturn will get you 35 mpg hwy. A 15 yo Geo Metro even better. Aren’t those better examples of truly caring for the environmnent?
Personally I do think the Prius is a status symbol. The difference in the amount of gas consumed is minimal going from 35 to 40 mpg (vs 10 to 15 or 15 to 20). The Prius to me shouts “look at me I am doing right by the environment, aren’t I special”.
4 JoeP // Mar 31, 2009 at 11:03 am
We’ve become accustomed to thinking in terms of how many years it takes for a purchase to pay for itself. Everyone has a price point that makes this uncomfortable, but others can endure more of the pain if they get a good feeling from consuming fewer resources. I think the Prius fits into this category.
Beside the cost of battery replacement, I would want to know the overall environmental impact of producing, owning, and maintaining a Prius. It might turn out to be more impactful than, say, a regular compact gasoline car. I just don’t know.
5 ryn // Mar 31, 2009 at 12:36 pm
As someone who works for Toyota, I can tell you with authority that the Prius is not a compact car. It’s classified as a mid-size vehicle, like the Matrix, or the Honda Civic, Acura CSX, Ford Focus, etc etc. Comparing to those such vehicles would be a more accurate comparison.
6 Kara // Mar 31, 2009 at 12:45 pm
Well we all know what happens when you assume, right?
First of all a Prius is DEFINITELY not comparable to a Yaris or a Versa. Have you ever actually driven/ridden in one? It sounds like you’re just sort of guessing based on looking at the exterior or seeing photos.
Second of all, why on earth would you base your assumptions on an average of 12k per year. While 15 years ago that was an average, Federal standards show that today, the average use of a vehicle is 15k per year. And there are many of us who use our vehicles for work and put upwards of 25k miles a year on them.
So of course you found “exactly what you expected” … because you drastically skewed your data to make it match the conclusions you wanted it to.
Maybe buying a Prius is not worth it for YOU given these assumptions. But for others who have different needs, different usages, etc., it could be worth it.
7 Fabulously Broke // Mar 31, 2009 at 12:54 pm
Have no opinion on the subject because frankly, it’s just too small for me to consider. (No I’m not a giant).
I just happen to NEED a full-sized car, or else I get extremely, EXTREMELY sick (motion sickness sensitivity) even if I am the one driving. And getting sick WHILE driving is not a good thing.
So these cars are out of the question for me.
Am linking to this in my upcoming Link Love.
Fabulously Broke in the City
“Just a girl trying to find a balance between being a Shopaholic and a Saver.“
8 Jeanne // Mar 31, 2009 at 1:22 pm
You know, it’s interesting to see the cost comparisons of different cars…and would be a strong post if it was kept to comparing cars.
Keeping the discussion on a professional level is the key to retaining readership. Writing about YOUR experiences (rather than examining and/or criticizing others’ decisions, even if you see reason) will keep readers coming back.
9 Meg from FruWiki // Mar 31, 2009 at 1:23 pm
FB,
Have you ever sat in one? I was surprised by the room in front. It almost felt like too much room!
Anyhow, I’d love a Prius, but no cars are currently in the budget — at least not until our current one bites the dust, and it’s hanging in there pretty well after 180k miles and some..um… accidents.
In the meantime, I’m also looking into the new diesel cars as well as upcoming electric cars. The good thing about waiting to buy a new car is that I have plenty of time to research and dream.
10 Barb1954 // Mar 31, 2009 at 1:59 pm
Jeanne, I couldn’t agree with you more!
11 paranoidasteroid // Mar 31, 2009 at 1:59 pm
Well, I left a comment about this on your previous post. I expect you’ll get a lot more angry comments from Prius owners about this. There’s talk above about helping the environment, but buying a new car is never the best choice. Plus, there are some serious claims about how harmful hybrid car manufacture is for the environment.
I wrote an (unfinished) series on organic food last year, and ultimately found that no one cared about the science. Organic food made them feel good and they wanted to believe that it was better for their health and the environment. They wanted people to know they were eating organic food.
It’s much easier to spend more to buy organic food or buy a hybrid car than it is to actually change something meaningful.
I won’t clog up your comments more than necessary… Perhaps I’ll write a post on this myself!
12 swaymonae // Mar 31, 2009 at 2:21 pm
I hate that car anyway.. they’re allowed in the “fast lane” and the damn thing red lines at 45mph
13 LAL // Mar 31, 2009 at 3:25 pm
Jeanne, Barb, you should stop reading this blog seriously! I write what I want because I own it. If you don’t like it, unsubscribe and stop reading. Or write your own blog!
Second the EPA estimates here it’s 12k miles driven a year by passenger cars!
http://www.epa.gov/OMS/climate/420f05004.htm
Sara, here are the dimensions of the Prius. This was taken from Yahoo Cars.
Headroom Front 39.1
LegRoom Front 41.9
Shoulder Frong 55.0
Versa
Head 40.6
Leg 41.4
Shoulder 53.5
Accent
Head 39.6
Leg 42.8
Shoulder 53.5
Yaris
Head 38.8
Leg 42.2
Shoulder 51.6
Aveo
Head 39.3
Leg 41.3
Shoulder 53.6
So I would say they are close to on par
14 LAL // Mar 31, 2009 at 3:28 pm
Parasteroid and Mary, I did not want to discuss the used car variable. Which is very important in this discussion.
For example I drive a small, older corolla with excellent gas mileage. It makes no sense to save pennies to buy a prius when I have a car that doesn’t cost that much to upkeep.
I don’t get why someone would buy a prius to save money. To help the environment? Maybe.
But like Joe said, we aren’t sure yet about what the costs of the battery and maintenance of hybrids will be.
Ryn, thanks for classifying. I know toyota wants to classify the prius as the same size as camry and accord and sonota. Too bad it just isn’t the same size. Same price though. Hybrids are more expensive period.
15 LAL // Mar 31, 2009 at 3:38 pm
Also lengthwise
Prius 175 inches
Camry 189.2
Sonata 188.1
Accord 194.1
And interior room, the Camry, Sonota, Accord are all around 3 inches wider and about 3 inches longer.
Prius is more in the size of cars i mentioned. And the civic/corolla fall in that category as well.
16 Kara // Mar 31, 2009 at 3:39 pm
“I write what I want because I own it. If you don’t like it, unsubscribe and stop reading. Or write your own blog!”
Wow. Nice attitude. Unsubscribing now. If you choose to blog publicly, then you’d better be prepared for people to disagree with you. If you can’t take it, maybe you should quit blogging.
17 LAL // Mar 31, 2009 at 3:41 pm
Do it Kara. Blogs are the owners opinion. You can disagree all you want, I”ll listen.
Barb and Jeanne, say they want it to be about my personal experiences and professional. I can write what I want on my own blog. And it can express my opinion.
I did not say Kara, have no opinion. Actually I’m pretty lenient, except when people call others Hitler/Nazi. But I am totally free to post what I want.
18 Mary // Mar 31, 2009 at 4:11 pm
“I write what I want because I own it. If you don’t like it, unsubscribe and stop reading. Or write your own blog!”
Actually, I totally agree. It is a blog, not the New York Times. Plus I agree with the analysis. You just don’t recoup the cost that quickly, possibly not within the life of the vehicle.
19 Kara // Mar 31, 2009 at 4:23 pm
Guess it depends on whether or not you’re writing for an audience, whether or not you want your audience blindly agree with you or not … or if you just want to write to yourself.
*shrug*
How does one unsub from comments anyway?
20 Barb1954 // Mar 31, 2009 at 4:43 pm
To quote from your “About” page:
“This blog is a 20-something DINK searching for true financial freedom. How she’ll get there? No one knows, but follow the journey of someone looking to live large one day at a time.”
That’s what your readers are expecting to find. Not you plagarizing the topic of someone else’s blog or criticizing the choices that someone else makes. I’m sure it’s hard to come up with something new to write about. Perhaps trying to post every day is too much. Try doing it just a couple times a week but make it about your personal experiences. You’re only in your 20s; no one expects you to be some kind of financial expert so you don’t have to try to act like one.
One of my favorite blogs is “Get Rich Slowly.” It is original, thoughtful, and the author basically says ‘this is what works or hasn’t worked for me or this is what I learned. ‘
You do have a tendency, LAL, to jump all over the decisions that others make. Who cares about the financial decisions that other people make, whether it be taking out a car loan or buying a new vs a used car or buying a second home. That’s their choice. Each of us has the right to live the life we want and spend our money the way we want without answering to anyone else. I just don’t understand why you get so worked up over the choices that someone else makes.
21 paranoidasteroid // Mar 31, 2009 at 5:53 pm
Barb, she’s not plagiarizing anything on this blog, or criticizing anyone else’s choices. She was wondering about Prius gas mileage and did some calculations. I don’t see her as “jumping all over” anything; she merely discusses the choices that others make, expecially when they’re controversial.
I do think that Priuses are status symbols. People could cut down on driving in order to lessen their impact, but they don’t. It’s a status symbol that they can throw money at a brand new car instead of making a change in their lifestyle. Plus, hybrid technology is so new that it’s really no different from buying the iPhone. I didn’t buy an iPod until they worked out the battery issue, and I won’t do it for a hybrid car either.
LAL, I hope you don’t mind but I wrote a post about this that will go up tomorrow.
22 fengshui // Mar 31, 2009 at 6:55 pm
I put on way more than 12k miles a year. I find it hard to stay within the 1k range per month AND I work 6 miles from my house…. I just drive too much I guess…. weekend roadtrips and whatnot really add up. Last year I put 16k on my car. I do like the idea of the Prius being environmentally friendly, but I look forward to more auto makers designing similar cars at more affordable prices.
23 fengshui // Mar 31, 2009 at 7:08 pm
I don’t think that there is anything wrong with commenting on another “fellow blogger”, or that other blogger’s decision to buy/ finance an expensive car when they had been preaching about not making impracticle choices. It makes for good conversation, actually
We’re all here to learn from each other 
24 dogatemyfinances // Mar 31, 2009 at 9:46 pm
Whee! The self-righteous Prius guys! My favorite. Guess they were too scared of my blog.
Other than my fantastic boss at my last job, I have yet to meet a person who drives a Prius who isn’t a giant blowhard. Same with the Minis, but that’s just an upcharge for style instead.
25 ryn // Mar 31, 2009 at 10:46 pm
Actually, Camry, Accord, Sonata, etc. are considered full-size, not mid-size. Yaris is considered a sub-compact. Corolla a compact. And yes, Prius is mid-sized – not on par with Camry, Accord, Sonata, etc.
27 anon // Apr 1, 2009 at 1:55 pm
I believe buying a prius is similar to spending for a hobby. It is not purely an economic decision. There are environmental impacts buying a prius; mining heavy metals for batteries, manufacturing waste/pollution, transferring electric generation pollution to other locations. If it makes you feel good and it is not harming others in a significant way, do it.
28 Nicki at Domestic Cents // Apr 1, 2009 at 3:35 pm
Interesting. I’ve heard this before. I assume that people who buy a Prius are more partial to the Toyota brand and to environmental impact rather than money savings.
29 sarah // Apr 2, 2009 at 11:57 am
Did you account for maintenance and repairs? A Yaris or Aveo might be cheaper on pure cost and gas, but if you’re taking it into the shop all the time the cost over five years is going to be much, much higher. I believe the new Consumer Reports rates the Prius Touring as the cheapest to own over five years, if you include price, gas, and maintenance and repairs.
Like all things, the most appropriate car totally depends on your lifestyle and needs. If you drive a lot, typically keep a car 5+ years, and don’t have a large family, I think the Prius is an excellent choice for a car. None of the Prius owners I know (I’m not one myself) are self-righteous, they are usually pretty fiscally conservative, planful types who are just really happy with the performance and reliability of the Prius.
30 JoeP // Apr 2, 2009 at 2:11 pm
Also have to consider registration and insurance costs.
32 Ishan@ Save Few Bucks // Apr 3, 2009 at 8:00 pm
Hey girl.. nice comparison .. I just love these kind of comparisons.. basically shattering the whole myth around hybrid cars.. I was quite surprised when I did a similar analysis on my blog:
http://savefewbucks.blogspot.com/2009/03/does-it-really-makes-sense-to-buy.htm
33 LivingAlmostLarge // Apr 3, 2009 at 10:47 pm
Sarah, it depends. Batteries and other costs. I saw the CR report and I have to saw they tweaked it quite a bit. Including driving a lot of miles and making assumptions about maintenance.
I know people with prius, and it costs more than a cheaper car for tires, oil changes, etc.
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