Worth upgrading from Gen 2 to Gen 4?

11,000 = $16,000
sooooooo you have a reliable low milage (under 100k miles, not kilometers) car that does car stuff.

it might be worth $1,500-2,000 (I'm guessing) with rust and stuff.

replacing this $1,500-2k car (for car stuff) will cost you a minimum of $14,000 plus interest and "unknowns".

depreciation = about 5% per year
loan costs = x

I'd say no, economically it's not worth it.

 

From a financial standpoint, it doesn’t make sense to take out a loan to get a newer car when your current car is working well. You can use several methods to determine when your current car needs to be replaced. The one I am using is I look at the total cost of the car over time, including purchase price, repair, and maintenance (but not fuel or insurance) divided by the length of time you’ve owned the vehicle. That should give you a monthly amount you essentially paid for the car. It’s a good idea to get a newer car if you can get a newer vehicle for that much per month or less, or if you have needed repairs that cost more than the car is worth.

 

We just bought a pre-owned 2017 Prius with 66,000 on it. That gives us the Gen 4 without buying "New" and we let the previous owner eat the lion's share of the new-car depreciation. We didn't have a trade, so it was an easy computation.

66,000 miles isn't terribly less than your 96,000 miles, but this vehicle is 17 years newer than our old one and with about 300,000 fewer miles. (no, not a Prius). So to us, it's a "new" car.

If it were me, I'd say your decision should heavily consider how much you can get for your old car. I'm originally from Chicago, so I KNOW about rusty cars. (throw them away after 10 years. You're lucky to get 100,000 miles before your brake likes, fuel lines, transmission & PS lines, fuel tank, floor pan, etc - rot out.) I don't know how bad the rust is in London (Road salt?) and what is likely to fail on a Gen 2 because of that rust.

Here - at least - it seems that used cars are going for WAY more than they should. Seeing a car with 90,000 or even 110,000 miles on it going for over $10,000 (US) is all too common.

I'm a former mechanic with more tools than I can keep track of - so I can keep a vehicle going a long time. Not sure I can do that with the Prius because of the tech. I'm in Texas no - so cars and trucks with no rust are the norm. You just keep replacing work out ball joints, steering gears, brakes, etc - until *something* makes it economically unwise. Then again, even putting a couple K$ into an engine or transmission is feasible when the vehicle has no rust.

 

from what i have read here, it is a big difference.

smoother, quieter, more comfortable, and an mpg and pollution improvement, although increased efficiency is a diminishing value.
beware loss of storage spaces, and potentially no spare tyre. check model levels for certain features like 3 door sks. keep in mind, toyota is a decontenter, so make a list of what you really like about your 08, and compare.

if it were me, i would upgrade. all the best with your decision!

 

Since your priority is financial prudence, stick with the '08 that works flawlessly and MPG is still in the 60s.

Is the Gen 4 better than the Gen 2? absolutely agree with the above comments on the improvements from Gen 2-3.

 

well...there are different ways to look at it.

if you trade in a car, you're going to lose thousands, either on the old car or the "new"car, or both AND the financing too.

trading is always a money loser.

dealerships aren't in the business of making friends and saving you money. they're in the business to PROFIT.

you'll normally do much much better by looking for the right car to come along (waiting) , buying it (cash) and then driving it for a while to make sure it's reliable/safe/exactly what you want, and THEN selling to a private buyer.

using this method takes all of the stress out of the car purchase process. no haggling with dealers, no lying, no wondering if the printout they showed you is correct, no hidden fees, and you don't have to accept their "deals".

it's REALLY nice to have both vehicles in the driveway and decide which one will serve you best... and if there is any remorse about the newer purchase, you can just resell it and go back to using the old car until the right one comes along.

"new" is insane. there's tons of depreciation, extra costs (insurance), and if you decide you don't like it in six months, bam, you have to pay for the gap.

we started buying "the next car" about ten years ago, before we were fed up with the current car. then, when we decided the"newer"car was a keeper, we listed the old one and only took what we were happy with being paid for it if it stays a month or two waiting on the right buyer, it costs nothing.

as far as keeping cars"forever" , we've done that. my old Toyota pickup was great for 14 years, the wife's Honda wagon for 15... but things get old and you move on.

we look at it as just another purchase, only buy what we have the cash for, and are pretty happy with 5-10 year olds.

 

From my standpoint, while the term “totally trashed” may be different for different people, that is essentially my approach. It is almost always less expensive to keep your current car as long as it remains in good shape mechanically.

I got a catalytic converter shield to prevent my catalytic converter from getting stolen again. It cost just over $300 installed.

While you may be “not trying to be ultra frugal”, the bit in your initial post about being extremely value conscious told me that you wanted a good deal financially. It’s never a good deal financially to take a loan to get a car, especially when you don’t need one, and that strongly influenced my answer.

 

I agree just about everything that has been said. To keep the most money in your pocket, keep what you have.

While you might not need a Gen 4... you want one. There is the difference. I've got >125K on my 2017 and it has been the most reliable vehicle I've ever owned (nothing but normal maint) Our relationship is one of respect but quite boring. I want another vehicle!

 

From a driving perspective - there is just no comparison. I test drove a Gen 2 and thought it was ... underwhelming. I was slightly more interested in Gen 3, but driving other cars at the time (Ford Focus, Pug 308 etc) - I realised I couldn't live with the PRIUS. I bought a FOCUS Diesel - then a FIESTA Diesel

When I drove Gen4 10 yrs later - I realised that TOYOTA had finally worked out how to make a car that is worth driving.

According to figures on Fuelly, Gen 3 is about 10-12% more economical than Gen 2, and Gen 4 a similar incremental improvement.

 

if you have the cash, sure, buy it financed... that way YOUR money doesn't get tied up in arbitration , should the car get totalled in a collision. that's smart.