Cost of ownership - Gen III vs my current vehicle

Like you said, you need to figure out what the insurance difference will be. Other than that, imo, I would be shocked if gas averages $2.75/gallon over the next 5 years. My little spreadsheet has gas set at an average of $3.00/gallon, and I thought that was being super conservative.

On the other side of the equation, however, is the $0 you have for extra maintenance on the Prius. Unless you are putting synthetic oil in your Mustang every 5,000 miles, the Prius is going to cost you more than the Mustang in oil changes. And I would plan on some other reapairs that aren't covered after the 36,000 mile warranty is up. Not enough to make up for the gas difference, but if you are trying to look at all the factors, I don't think it is a good idea to assume that maintenance will be nothing at all....

Oh - and don't forget about sales tax (depending on your state).

Hey - and aren't their dealerships that give discounts on new cars to new college grads? You should look for one of those for sure!

 

Some changes below, but they won't make much difference.

As you mention, there are subjective reasons as well. A new Honda Fit will have a much lower total cost of ownership than a new Prius over the next 5 years (2008 Honda Fit vs. 2008 Toyota Prius Hybrid) - the Prius is not the lowest cost of ownership car you can buy at any believeable cost of gasoline (gas would have to be $8 to $11/gal for the Prius to be competitive on total cost of ownership). Best of luck...

 

I wouldn't get too worried about the Edmunds article btw. The battery in the Prius will probably last longer than 100,000 miles, or Toyota wouldn't have a 100,000 mile warranty on the battery. Some Prius taxis have gone over 300K on the same battery. And the price of the battery is equivalent to the price of a new conventional transmission at around 150K.

And a Honda Fit, as much gushing as there has been in the auto press, is still not going to haul the fam around so well as the Prius.

Not so sure either on the higher insurance cost. My 08 Prius costs less than my 01 Chevy Blazer because of the difference in the drivers (usually) of SUVs vs. family cars. I'm just guessing that your Mustang isn't cheap insurance-wise.

 

The super low emissions and the fact you are using less foreign fuel could toss extra weight in favor of the Prius is you car about such things.

 

While the Edmunds article mentions the 2008 cost of a new traction battery, it was clearly not included in the cost analysis if you read the whole piece. Whenever it does fail, that will be an additional cost, but not at all likely within 5 years. Again, there are dozens of new small cars with substantially lower total cost of ownership than a Prius despite what some folks would like you to think - and the OP's focus was clearly on total cost of ownership. Buying a Prius suggests other priorities.

 

If all you are concerned about is cost then a new car is not the thing for you. People may argue with me but the least costly vehicle is going to be a nice fuel efficient used one that costs about $2000-$4000 bucks.

People way overestimate the yearly cost of the repairs on these "old" vehicles because when the repairs come they tend to be very expensive. But, $2000 a year in repairs every year? That is like rebuilding the tranny, brakes and replacing tires every year. Don't forget about the opportunity cost of that $23000. Even at 2% interest (which you should be able to find) you would get almost $500 in interest every year. Heck that might pay for the repairs on your clunker all by itself. You would be better off buying an 05 Prius (still not the cheapest) if cost is the only consideration.

Of course if you are also concerned about other non cost related items such as:
Practicallity (I won't have to take 2 cars to transport my 9 kids)
Safety (I'm afraid I will die in a firey crash)
reliability (I'm afraid of being stranded somewhere)
looks (I'm afraid of not getting any)
environment (I'm afraid of burning up in an environmental collapse)
personal image (I want to say "look I can afford a new car")
And my reason for purchasing (I just really want one)

Then the Prius may be for you. But don't kid yourself you can't rationalize a Prius (or any new car) on cost alone.

G

 

As someone else said, a Fit is probably a cheaper and sportier option overall.

I'd also say your gas mileage for the Mustang might be high, considering it's a Mustang and I assume will be used as such at least some of the time. Of course, if you do 70% highway mileage and drive it like it's a Camry and not a Mustang...

 

how old is mustang?? the percentage of depreciation seems to be the same which is something i would have to reevaluate since most of the depreciation happens in the first 3 years. after that, the rate drops quite a bit. also, depreciation is based on how much demand the car has. its very conceivable that the Pri could be worth MORE in 3 years than it is now (dont laugh, it happened to me. my 2004 pkg #1 cost me $22,000 and change out the door... i drove it 25 months, put 30,000+ miles on it and it was wrecked. the other person's insurance company paid me $23,800 for it. basically allowed me to upgrade to pkg 4 for $900 WITH NO depreciation and a free 30,000 miles)

the fact that your chart says it will be close in long term cost using what i think is questionable numbers i think a Pri is a no brainer. the possibilty of a major repair expense has the "X" factor in your consideration and on which vehicle is that likely to happen?

**edit**

ok, reread post, i see you are talking about a 9 year old mustang with 80g on the odo... sorry but maintenance costs $2500...paint and tires alone is that much.

 

Funny, I have a '97 Mustang and am thinking of getting rid of it and getting a new Prius. Last year i had to pay about 2k just to pass safety inspection, and now recently my car has been stalling and I have a hard time getting it out of park, so i think estimating $2500 in repairs and maintenance over the next 5 years for that mustang is too low.

 

I had a similar problem in September 2005 and went with a used Prius:

• after 3/36000 - the initial warranty covers 'infantile problems' so it has little value but marks a first softening of price
• before 8/100000 - the traction battery warranty had value in 2005 since it was still an unknown risk. We now know a lot more about traction batteries but this is 2009.
• found via Ebay - this opens the market across the country, a wider selection.
• fair market value - Ebay completed sales as well as KBB provides a good 1st order estimate of fair market value. Use it and be patient while looking for a "Buy now" in the range.
• buy from dealer - there is no assurance in life but a dealer can have the service department check the car. Avoid a 'wholesale' by checking the VIN record.

You'll get good value with little risk in a 35-65,000 mile, used Prius. It is a fairly conservative approach to getting into a good hybrid. Best of all, there is a tremendous amount of 'lessons learned' about the NHW20 so you'll have a 'brain trust' to call on.

This is an example of used car analysis available by looking through Ebay:


GOOD LUCK!
Bob Wilson

ps. There are excellent values in the clearance 2009 Prius with new car warranty. But again, you may need to do cross-country searches using Ebay and Craigslist.

 

Hey Eddie,

I just bought a 2010 Prius. Why? Because I put more than 250,000 on my 2002 in a little over six years and the only maintenence I ever had to do was change the oil, wiper blades, and tires. I never had to put brakes on the car (with over 250K miles!) and I assume that's because of the regenerative braking system.

When I first bought the 2002 car, I calculated the ROI (return on investment) from fuel cost savings alone at a little over 2 years. However, that ROI calculation was based on fuel at $1.50 per gallon. Due to fuel prices rising, the ROI was MUCH shorter and, in fact, permitted me to bank a LOT of cash I would have otherwise put into the tank. When I penciled out the ROI on my new Prius, like you, I used $2.50 per gallon and 50 MPG. These figures are probably low; I would not be at all surprised to see $4.00 + a gallon gas, again, and in the not-too-distant future). And, depending on the driving you do, you may get a heck of a lot more than 50 MPG. I'm already getting 55 MPG driving 200 miles per day at freeway speed and I'm still discovering ways to optimize FE. I've seen reports of folks (with pictures of thier consumption read-outs) that are getting 60 to 70 MPG; granted thier commutes are different from mine, but the numbers are there.

And as you rightly point out - it's not only about the money. It's great fun driving a Prius and trying to "squeek" out another 2 or 3 (or 10 or 20) MPG . Safety is another SERIOUS consideration. I was rear-ended in my 2002 by a guy doing 60 MPH while I was nearly stopped. I ended up in the back seat, but avoided serious injury. His Saab was totaled, I drove my Prius home (broken driver's seat and all). It only had 150,000 miles on it then. Do I think that's worth $30 or $40 a month? I'm here to tell you so (thanks to Prius safety systems).

Not trying to sway you from your Mustang. I LOVED muscle cars when I was younger (read: single, living at home, no kids, no bills, all that). My perspective has changed over time

Enjoy in Joy!

 

I was going to mention the much lower cost of ownership for the Prius, relating to repairs, etc., but others have said it before I could.

So, yeah, what they said.

Remember, the higher the cost of petrol goes, the higher the resale value of the Prius goes, and the lower the resale value of gas hog vehicles goes... so your gap is widening.