Hello, finally looking into a Prius

If you are looking for economic excuses to by the Prius then you will eventually save enough in fuel to pay off the difference for the car and then start working your way into the black instead of the red. My old GMC Sierra only got 14mpg but the fuel savings allowed me to pay off my GenII Prius within 5years. It definitely makes economic sense if you drive enough miles yearly. For those who drive very little then it may not pencil out as economically beneficial. Buying used is a great way to start off saving.

Now if you want to get into the rationalization that you are reducing dependence on foreign oil, polluting less (environment and community health as well as agriculture) and pushing the idea of fuel efficient cars then you will receive instant gratification by buying the Prius if you care about community and national support.

 

You could wait just a few more months to wait out the market. Then again gas might go back up, inventory might stay low, and the prices might not drop.

Keep in mind that based on your monthly fuel costs, you will only save about $90 per month in fuel. It's actually not that much.

I think the marginal drop in utility from going from your Magnum to a smaller Prius is not great, and the increase in fuel economy is much greater. So in my mind the pros outweigh the cons. Just depends on how much you get on the trade-in.

If you really want the Prius, why not?

 

Before getting my 2010 Prius, I looked at the economics of gas expense savings break-even. It took a long time (far longer than I've ever owned a car). Gas cost savings was not the reason I decided to get a Prius (the reasons were environmental), but I decided to do the analysis just for info.

To answer your question, take the number of litres saved per year (based on the different MPGs of your current vehicle and a Prius, and the number of miles you drive per year), and multiple by the cost/litre. Then divide that into the incremental cost of a Prius (less the trade-in value of your current vehicle) to get the break-even number of years. It's going to be a long time.

 

Greetings and welcome!
:welcome:

OK...so you're up in Windsor (south of Detroit, in Canada...for the studio audience) and gas is about $4.75 a gallon, and you drive about 6K a year.....based on the info that you've provided.

Your car probably doesn't have very many miles on it, if you bought it new. I'd try to sell it privately before pulling the trigger on a new Prius. They'll stick it to you if you trade it in. Since it's paid for, and you're only spending a buck fifty a month on gas, economics say you stay pat for a few months (maybe save some money) and wait for G3 prices to normalize.
That's probably not the answer you wanted, but as stated before if you really, REALLY want a new Prius in your driveway then you're going to have to do it for reasons other than fiscal prudence. Winters are pretty tough up there in the frozen North. You're going to take a bit of a mileage ding (about 5MPG) with the G3 during the 9-10 months of absurdly cold weather that you have up there.
Just so you know.

Still....if you want one...go get it.
I'd rent one and drive it for a weekend before committing to owning one if it were me. Priuses are pretty good cars. They're light on maintenance, easy on gas, and there are lots of cheerleaders for this car. The G3 seems to be fairly dependable, and they're also very VERY "green"....if you're into that.
Still, as I always say, there are certain items in the Prius ownership experience that should be fully explored before you stick one in your driveway. A fifteen minute test flight with a sniveling sales person in the co-pilot seat ain't gonna cut it!

Good Luck!!!
Let us know what you decide!

 

This supports my previous post. Saving $2,100 per year, and paying $22K (less whatever you'd get for your current vehicle) for that privilege, does not make economic sense. But there are other good reasons to get a Prius.

 

No car purchase is just about numbers. If it was we'd all be driving old beaters, LOL. Have a decent test drive, see what you think. We did two test drives, the second in a Canadian "Touring" model, with the 17" rims, which we ultimately bought. Felt much more comfortable in that model, fwiw.

 

Mendel is right. Usually we go with a number we feel comfortable spending, then find a car to match it. If you wanted to save money, you'd be buying probably an '07 Prius with 80K-100K on the odometer (since you don't drive a lot, you won't be adding huge numbers to what's already on the odometer, so resale value would actually go up, relative to other cars from that year).

Can you really find a used 2011 Prius already?

 

Good luck with your decision to get rid of your Magnum. I hope you find a buyer, given the price of gas. Sounds like your first challenge is to sell the Magnum, then try to find a used Prius. It can be done, but patience may be a virtue.

 

GL with everything, and welcome!

 

If looking for used Prius, try searching Toyota Certified Used. This is how I got mine:
Certified Used Toyota Cars, Trucks & SUVS