Trying to Rationalize a PIP

This spreadsheet might help. It's not perfect, but it worked for this ol' country girl. I confess that the tax credit in WV pushed me into "buy it now" mode. Glad I did. Love what it doesn't do to the environment - priceless.

 

There is an issue with state tax differential on your trade in. Advise researching that before buying.

 

OP, I don't think you can "rationalize" it in terms of worth and $$. You're gonna take a loss from depreciation and paying the extra TTL. Now is the loss worth the gains? We can't really answer that for you because everybody is in a different situation with different wants/needs. Would you be happy with the PIP while paying $128 more per month? IDK, but I'm willing to bet you would. If you're happy with the vehicle, and it's something you can afford reasonably, then go for it.

I was in the same boat when I traded the Two for a Three mainly for the sunroof. Took a hit despite the awesome APR I got, but I'm happier. Now I wouldn't have made the jump if it would've broke my bank.

And yes, I know you can get $20k for it, because I got more than that for my Two with 17k miles on it bone stock. Also do consider that a good trade in offer may or may not affect the selling cost of the vehicle you're buying.

 

Wait.

For a couple of reasons.
First of all....even at today's stupid-low interest rates, it is unwise to finance a car for 72 months....especially if you go trading your car in every year or two.

Secondly....this is not the time of year to buy. There are still some people that have tax returns burning holes in their bank accounts.

Lastly....I don't see you saving enough in gas to warrant the higher note. If you want a Pip, you want a pip. I get that, but if you're doing it to save GAS MONEY with LESS than a 10-mile daily commute and you already own a Prius???
I’m not seeing it.

The good news is that your '12 is going to hold it's value, especially when the next fuel price shock hits.
Spoiler Alert: It's going to happen!

Don't blow it by trading your car in!!!
If you're dead-set on a Pip, try to sell your G3 privately.

Until then.....I'd remain 'wireless'....

 

Wasn't the deal is usually 0% financing or $2000 cash back?
Did you get both?

 

That tax looks lovely to me (~$1300). You have a defacto half tax incentive until they fix up the out-of-state law. Keep in mind the plug-ins/PiP's seem to be depreciating a lot faster than the Toyota hybrids which hold value extremely well (bad news for me because we pay car value tax every year in VA). I would think your car will be worth as much as a used PiP in a year or two you could be even-up on the trade.

 

Then get a Tesla Model S and be done with it!

 

I did get both - there may be better incentives out there now but 5 weeks ago the NE area (and I think NY?) had special incentives. That knocked my price down to 28.2. I'll get the 2500 fed cashback and I value the 0% 60 mo deal as another 2k making this PiP = 23,700 in my book.
Again I'm sure prices will continue to drop but compared to the 30-32 some paid I was pretty thrilled

 

I agree with Retired 4999. Wait a year or two. But just in case, consider my November, 2012 purchase:
(The difference is I drive at least 40k miles per year.)
I traded my 2010 Tacoma for almost the same terms as you and your Corolla.
1. They gave me 60 months at 0% interest with no money down. Even if I were a millionaire why would I use my money?
2. They gave me a $3500 rebate.
3. They gave me $3000 off the sale price.
4. I got a $2500 tax credit last month.
I figured the incentives combined to make the PiP cheaper than the regular Prius.
The Pip is certainly made more for someone like you than for me. Where I spend $300 per month on gas, you'll spend $5. But do the math. If you can get the right terms, maybe you should buy now.

 

I hope you can still find one, 2012 PiP base
Similar situation 3 month ago:
1. took a hit on 2011 (18mos-29K mile) prius II for $15.8K.
2. $5K rebate factory, NE area.
3. $2.8K =10% dealer discount 2012 model in 2013.
4. $2.5K IRS, 2013 tax filing.
5. Also, 60mos 0%, free money.

I put in around 20K miles a year. If I keep it for long enough, 10yr+, my PiP is free. Forgive my honest opinion, 5-10mile daily commute, it doesn't make financial sense to have a regular prius to begin with, never mind a PiP.

 

wsbsteven, to rationalize a PiP = you need to find a good deal on PiP+ spread out the depreciation on your trade over PiP years+put a $ on the options your regualar II didn't have+compare with an average nonpriuse car

 

Really? It depends on what you are comparing it to. (I've had only Prius' for the last 12 years).
PIP makes perfect sense for me...free charging at work (6 mile commute, plus lunch and other trips from work).
90% of weeks I am 100% EV Mon-Fri (100-150 miles); and other weeks I have 10-40 miles HV...and when I travel long distances I get 55+ mpg. What other car does this for as little purchase price and little maintenance?

Mike

 

Would a similar priced, less fuel efficient vehicle, make more sense? I have a dream work commute. Leisurely 9.8 mile, 14 minute, 80% interstate, low traffic volume. I was in the market to replace another vehicle, so cost was relative. A Prius made sense, a Prius Plug In came at a higher cost, but less than the cost of the vehicle I was replacing. I've had more fun driving my Prius Plug In, than all but one car I've ever owned. My EV ratios has been as high as 70%, currently at 66%. That counts for something. True financial sense would result in a dull, boring world.

 

3PriusMike, "Mon-Fri (100-150 miles)" that is 7K-11K miles a year is different than 10mile/day or 3650 miles a year, 2-3 times more, really?? Are we talking about the same. "Financial" sense means if numbers workout, numbers/facts only, really. Rationalize for wsbsteven with a recent model prius II trad- in, not your free charge free lunch situation, really. Annual millage less than 10K miles (roughly), really doesn't make much "Financial" sense for prius. Yes, there are more than financial reasons for people to buy/drive prius, really!! Read my post/statement again, that was not my case rationalization for wsbsteven.

 

Don,
fun to drive, or interesting with plug-in technology, etc... are different than financial sense, number talks. Yes, number talks sometimes are boring, but true and mutually understandable. Your "less fuel efficient vehicle" case should not attach with "similar priced"; for "similar priced" and "less fuel efficient vehicle", I would look for more fun factors, such as convertible, real leather seat, more room, 4WD, etc. Apple is apple; orange is orange.

 

3PriusMike, "Mon-Fri (100-150 miles)" that is 7K-11K miles a year is different than 10mile/day or 3650 miles a year, 2-3 times more, really?? Are we talking about the same. "Financial" sense means if numbers workout, numbers/facts only, really. Rationalize for wsbsteven with a recent model prius II trad- in, not your free charge free lunch situation, really. Annual millage less than 10K miles (roughly), really doesn't make much "Financial" sense for prius. Yes, there are more than financial reasons for people to buy/drive prius, really!! Read my post/statement again, that was not my case rationalization for wsbsteven.

Read more: http://priuschat.com/threads/trying-to-rationalize-a-pip.125926/page-2#ixzz2TQ0oX25M

 

Don,
fun to drive, or interesting with plug-in technology, etc... are different than financial sense, number talks. Yes, number talks sometimes are boring, but true and mutually understandable. Your "less fuel efficient vehicle" case should not attach with "similar priced"; for "similar priced" and "less fuel efficient vehicle", I would look for more fun factors, such as convertible, real leather seat, more room, 4WD, etc. Apple is apple; orange is orange.

 

Financial sense when comparing pure numbers are the same. Age, financial comfort level, etc., vary, and as a result, what makes financial sense is different among us. Financial sense to me is a $35,000 Prius Plug In Advance, daily driver. I couldn't justify spending twice that for a Telsa S. I can get a "similar" thrill at the Prius Plug In entry level. Fun factors, such as convertible, real leather seats, more room, 4WD, etc, been there. Never had a Prius, or EV. It's fun and exciting to me.