A Prius makes $ense when...
When does it make sense to buy a Prius? My sister posed this question to me as a means of resolving a dispute with her husband, who does not think there is a payoff. I'm no talk therapist, but I can crunch numbers.
So how long do you have to drive a Prius, which is more expensive than similar cars but has better gas mileage, for it to payoff?
The average American puts 12,000 miles a year on their car and gas prices are hovering around $5 a gallon. If the Prius gets an average of 46.5 mpg, a year of gasoline is going to cost $1,300. Gassing up the Honda Civic, which gets an average of about 30 mpg, costs slightly more at $2,000.
So every year you drive the Prius you save $700 on gas compared to a car that gets about 30 mpg. If you drive 15,000 miles a year you save about $900 a year on gas. If you drive 10,000 miles a year you save about $600 each year on gas.
Consumers pay about $23,583 for the 2008 Prius, according to Kelly Blue Book. The Honda Civic is about $15,700 for a standard four-door model.
Going back to a driver who puts 12,000 miles a year on their car, if you save $700 a year on gas with the Prius, it takes...
...11 years to make up the extra cost of the Prius. Wow! Is that right? I thought it was going to be closer to 5 years.
Perhaps I should recalculate for a comparison with a car that gets 25 mpg...crunch crunch crunch...driving 12,000 miles a year on a car that gets 25 mpg will cost you $2,400 per year in gas compared to the Prius' $1,300 gas tab. But with the Prius costing $8,000 more it still takes about 7 years to pay off the Prius. Yeesh, those things really are expensive.
Caveats: My estimate assumes minimal maintenance for new cars and does not take into account things like oil changes or the rising price of gas. If gas hits $6 a gallon, it's another story.
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About The Bargain Hunter
Daily News staff writer Julia Scott loves to find bargains on everything from groceries to Gucci. Her tips will help keep your hard earned cash where it belongs - in your pocket.
Another thing most people don't think about when purchasing a hybrid vehicle is the cost of about $3000 to replace the battery approximately every 10,000 miles.
There are also less easily-calculated benefits, such as the carpool lane sticker which saves time (and gas) in heavier traffic, the tax breaks for hybrid cars, and employer incentives for purchasing such cars.
I have a 2005 Prius with 47,000 miles. I never had to replace the battery as "slc" suggested in the first post.
Another benefit it the low emissions. If you have ever waited behind a car in the take out line and then waited behind a Prius, you would know exactly what I mean.
Julia,
Delete that comment about having to replace batteries every 10,000 miles. That's total B.S. For one thing, batteries are usually covered by warranty for about 80-100,000 miles. Second, there is no evidence (Google it) that you have to replace batteries anywhere NEAR that much. There are some reports that some of the early owners of the Prius had to replace their batteries after 100,000 miles, but not 10,000. You can't let people post junk like that; it reflects on YOUR credibility.
And, the tax breaks that the second person wrote is important. Some hybrids qualify for a $3,000 credit (not deduction) and some no longer qualify, like the Prius.
When I drive my Prius, I feel I'm doing my part to help the environment by not using as much gasoline. That makes sense to me!
i drive a 2006 scion Xb that gets 30-32 mpg religiously. its a "low tech" car for 1/2 the price of the prius. My son drive an 04 xB with well over 100K miles with just oil changes and one set of tires.
AAA recently did a study that tracked the actual cost per mile to operate a car from manufacturing to junkyard and taking into account mileage and cost of scheduled service. The 04-07 Scion xB was the most economical car to own at 49 cents a mile. the prius was way down the list with a cost per mile of $2.88 per mile.
if you read the daily news business section i beleive it was last sunday. there was an article that said it was cheaper to buy a good used 5 year old sedan that gets 25 mpg than to buy a prius because of the inital cost of the prius. the sedan would save you about $1700 per year.
So, even with no battery change except at the 100,000 mile mark and even with car pool benefits (also available for gas cars with more than one occupant), tax breaks, and employer benefits, I am *still* not breaking even until 5-8 years out. AND I am being seen in the Prius (ugly car!) in the meantime. Yep, hybrid has a way to go to pass the mass market appeal test. I'll check back in 5 or 6 years to see how things are coming.
It's not about the money, it's about the environment: less gas, fewer fumes burning up the ozone layer
Gail may "feel I'm doing my part to help the environment by not using as much gasoline. That makes sense to me!" but it is only a feeling, not really supported by actual data.
The Prius does produce pollution and toxic waste, primarily in the use of all the nickel in the battery. It is a "feel good" car, not really the best car or other means of transportation if you want to "help the environment."
Ellen Mills - If it's not about the money, then how is it a bargain? If you really want to use less gas and reduce emissions, why not take the bus?