0% Camry / 7% Prius -- if I keep it 10 yrs, which is better $-wise?

For me it is hard to justify paying 7% interest over no interest. Unless you drive 20K miles or more per year based purely on money I would buy the Camry. It would take too long to recoup the extra money spent on the Prius.

On the other hand.... if your looking for a cool car and you have the extra money to spend... I would buy the Prius.

 

I think the math seems right. Oil changes on the Prius must use 0W-20 oil and that is more expensive if you compare it to a standard Camry that can use normal oil.

However, I'm a firm believer that gas will be higher than $3.50 in the next 5 years and MUCH higher in the 10 year time frame. This would make your cost of ownership for the Prius more attractive.

The 7% interest is hefty for a new car rate, have you shopped other banks? For example, Bank of America offers a discounted rate for hybrid purchases (not much but 0.25%) or even credit unions in your area.

Another consideration, is finding a 2009 Prius or a 2009 Camry that you can get for lower cost and yet low miles with warranty, etc... You've got a lot of options.

 

I agree that unless you really want to split hairs, your math is sufficient to make a decent financial decision. I own both a camry and prius (genII) - here's a few of my beliefs.

1) Regardless of manufacturer stats, I find the Camry much roomier for my 6'4'' frame.
2) From a performance standpoint (ie get up and go) the Camry wins hands down.
3) I favor the Prius' hatchback over a trunk.
4) I favor the quiet ride of the Prius.

Not to be critical, but if money is tight... there are mush lower cost options for transportation.

 

OH my gosh,,, drive a car you want and love vs a car you drive because of price. I can tell you my friend, if you want the Prius, buy one. Otherwise every time you'll get in the Camry and start it up thinking I could of had a Prius. When amortized over 10 years how much is that peace of mind worth?

I have learned over the years that the extra paid each month on getting exactly what you want vs what you had to get... just isn't worth it. Be a happy driver, buy what your heart desires, stimulate the economy, and each day as you climb into your Prius there will be a smug smile of satisfaction and a gleeful expression every time you pass a gas station or see another camry. However, given the high price of financing you quoted, I'd shop around for a better rate.
-Paul R. Haller-

 

If you cannot qualify for a better rate than 7% on the Prius, there is no way that you will qualify for the 0% on the Camry.

 

Personally, I don't believe in financing for a car-- I see no reason to pay anything extra over the cash value of the new car, year-over-year, for a continually-depreciating asset.

In your case, the Camry would be the right choice since the 0% financing means you are not paying extra for a depreciating asset. Essentially you are paying cash value for the new car, spread out over 5 years.

While I like buying new cars because buying used means a greater chance you are buying someone else's problem, many also believe buying a 1-2-year-old car is a smart move because you are letting someone else take the biggest depreciation hit. So you might want to consider a used Prius between '07-09, which might be an even better deal than a brand-new Camry at 0% financing.

Hope this helps.

 

The math on the monthly gas savings looks suspect. 15,000 miles at 50 mpg is 300 gallons; at $4/gallon it's $1200. So a Camry would have to burn twice as much gas to save $100 per month. Does a Camry only get 25 mpg??

 

If I was you, I will wait a few months after the Cash for Clunker deal is over. C4C has made inventory of Prius very low. When there is more supplies, you can get a better deal. Depends on the model, you can get more than $1000 off MSRP.

 

You seem like a very rational buyer. Camry is the rational choice (with the 4 cylinder engine)

 

Hmm.. Is there that much difference in the front seat legroom between the 2nd-gen and 3rd-gen..? Aside from the front seats with more adjustable options in some of the 3rd gen, I thought the interior dimensions differ by a matter of fraction of inches.

 

You can buy a Prius for quite a bit less, since you seem to be comparing to a very basic Camry. We have am 07 Camry Hybrid and love it, but if you want lowest cost of ownership, the TCH won't fit your needs.

 

I realize your situation is unique. Approaching retirement probably makes a big difference. However no offense, but people go through elaborate means to either justify a purchase or negate a purchase or make a decision about a purchase. Well, your name is "HookedonPrius" and you say you've been dreaming about a Prius for a long time.

To me, that would be important. Sometimes I think people when it comes to car purchases drift away from "what they want". The 2010 Prius is one of the hottest selling cars right now, so unfortunately no big deals on them. It's hard to justify the purchase of The Prius if you are looking only at the economics of purchase.

But if you've always wanted a Prius? You've already owned and own a Camry. It really boils down to what you want. If the economics were a deal breaker, you wouldn't even have to ask.

My personal opinion is IF you can afford it, get what you want. You may love the Camry, but if you've always wanted a Prius, everytime you see one you will be second guessing yourself. If you are keeping your 05 Camry, you then have the best of both worlds. An 05 Camry with only 76,000 miles still has plenty of life in it, assuming you maintained it reasonably well.

So I'm voting go with what you want, even at an economic penalty. My only warning would be since your husband is so tall, make sure to take a long, long test drive, and/or have him sit in The Prius for a period of time. Some people have had real problems with back pain over long periods with the seats. It may sound strange, but I'd ask the dealership if he could sit in the front seat for 1/2 hour or longer.

I'd go Prius, but my only warning would be make sure it's comfortable for you both.

 

• PenFed is real. *Excellent credit Union*
• If money is tight, why are you sticking to a 10 year car replacement program if your current car(s) are OK ?
• Will you require 2 cars in retirement ??
• Prius pricing tends to move with fuel prices, but will go down next year if fuel is not much more expensive.

 

The lowest-cost solution is to buy a clean used car. No matter whether you buy new or used, pay cash. Don't borrow money for a car, especially not for a new car. Save up for it.