We Need Your Help - Time to Make a Decision!

One thing to remember is that right now, your current cars have "x" value. If you drive them into the ground, their value would probably be $0 (or $500 for junkyard guy to pick it up) so it might be better to let them go now v.s. later.

Also, someone mentioned above the cost difference between a non-hybrid v.s. hybrid, which I think is where you should focus your thoughts if you are thinking about a new car.

Take a look at two new cars that would fit your needs: One being the Prius and another being a non-hybrid car, then do the math. It won't make financial sense to buy the Prius, (mostly since the tax credit is gone) but I've found that most people are driving a Hybrid because it makes them feel good, not because they thought they would save money.

Another thing to consider is buying a used car (either Prius or other). You save the initial "off the lot" depreciation which would help offset the loss you will incur with any car you buy.

 

Oh, and the idea of keeping the money in the bank and financing the car v.s. paying cash only makes sense if you can earn more % (remember to include the income tax you'll pay on that money) in the bank than your finance company is charging you..... which I doubt could happen today.