My local Toyota dealer sent me an unsolicited offer letter. Their offer confused me because it seems like a good deal, but I’ve never gotten a good deal from a new car dealer, ever! I have a 2015 V Two with 80,000 miles. Toyota of Knoxville’s offer is to pay off my loan ($3,640), get up to (tricky words “up to”) $7,868 in equity, receive $543 toward a new vehicle, and 0% interest for 60 months. I’d drive off with $0 cash out of pocket, and get a new payment of $347 which is $17 less than I’m paying now if I buy a new 2020 Prius LE. Historically, we keep our cars forever. The last 2 cars went to the junkyard when we were done with them. I recently retired, and I’m concerned now that maybe a hybrid isn’t the best choice for us since the hybrid repair costs can be very high as they age. Should we sit tight, and own this car free and clear in 10 months and worry about a new car when this one dies? Should I take this opportunity to trade for a non-hybrid Toyota while we have equity in this and can get a 0% loan? Or, should I take the offer as is and enjoy a car and battery that is 5 years newer than what I currently drive?
That new payment is going to be a lot longer than the 10 months you have left to pay off yours. I say stay your current course and wait for it to break down ready to go to the junk yard. moto g(7) power ?
You would gain a 10yr 150k mile warranty on the hv battery and the best safety features. Plus 8yr 100k miles on the rest of the hybrid equipment. You should still have 20k of hybrid and hv battery warranty on your v. You would gain five or more years of reliability without major maintenance. No real concerns about oil burning, egr, brake boosters or head gaskets. You would lose some space and certainly spend more money for payments over the next five years. You probably have $10k in real equity now but in five years it will likely be $5k assuming nothing serious breaks. If I really liked the LE and did not feel it was a compromise in size, appearance, features or colors I would serious consider it.
How many miles per year do you drive? That’s the determining factor in deciding whether a hybrid is worthwhile vs a non-hybrid.
Since retirement, we drive 10,000 miles a year. Their offer is good until the end of the month, but for now I’ve decided not to trade. It will be nice not to have car payments, and the Prius isn’t the same as the V. I’d be giving up the great back trunk area if I made the trade. If I was able to trade for a new V, I would have made the trade. Thank you for all the help.
I saw the new v over the weekend. Its now called the Venza, same mpg, shape, far superior noise suppression, better interior and awd. Downside, its hard to get and no great deals. http://bit.ly/HybridVenza
