The old "payback for extra cost" argument

[JackDodge]

I was behind yet another driver in a major league light-running, lane-jumping, get-out-of-my-way hurry, driving a Cadillac SUV with a manufacturers license plate this morning and the old saw that we hear over and over that the few thousand dollars extra that a Prius costs over a gas-only Camry came to mind. A lot of us didn't buy our Priuses with the idea that we'd save money in gas, anyway. However, my car cost $23,000. If the driver of that Cadillac actually had to pay for his ride; even if it was just a run-of-the-mill $40,000 SUV, it occurs to me that that's an extra $17,000. If I were to have bought a $40,000 SUV instead of a Prius, how long would it take for me to make up that extra $17,000? Forever? Or, would I lose a lot of money? It just strikes me as asinine for a driver of a $40,000 gas guzzler, that gets less than half the mileage that I get, to be telling me that it'll take years for me to make back the extra cost of a Prius.

[roach52osu]

Originally posted by JackDodge@Jan 6 2006, 11:12 AM
I was behind yet another driver in a major league light-running, lane-jumping, get-out-of-my-way hurry, driving a Cadillac SUV with a manufacturers license plate this morning and the old saw that we hear over and over that the few thousand dollars extra that a Prius costs over a gas-only Camry came to mind.  A lot of us didn't buy our Priuses with the idea that we'd save money in gas, anyway.  However, my car cost $23,000.  If the driver of that Cadillac actually had to pay for his ride; even if it was just a run-of-the-mill $40,000 SUV, it occurs to me that that's an extra $17,000.  If I were to have bought a $40,000 SUV instead of a Prius, how long would it take for me to make up that extra $17,000?  Forever?  Or, would I lose a lot of money?  It just strikes me as asinine for a driver of a $40,000 gas guzzler, that gets less than half the mileage that I get, to be telling me that it'll take years for me to make back the extra cost of a Prius.

[snapback]184746[/snapback]

I agree... to some extent from a financial standpoint I could understand the argument when making the comparison to a small non hybrid car (mazda 3, honda civic, corrola etc...) but when making the comparison with a SUV it does not make an argument. The initial cost is higher than the Prius and the variable costs of operation (gas) is higher. It would not make a sound financial argument.

[priusham]

It's an "old bit" because, as we say here on PriusCat, I mean PriusCHAT, nobody buys a brand new car to "save money."

You save money by not spending it. End of arguement.

Now... I need to eat...

[JackDodge]

Originally posted by priusham@Jan 6 2006, 10:23 AM
It's an "old bit" because, as we say here on PriusCat, I mean PriusCHAT, nobody buys a brand new car to "save money."

You save money by not spending it.  End of arguement.

Now... I need to eat...

[snapback]184752[/snapback]

We're all PriusCats, aren't we?

[richard schumacher]

If you were to have that conversation with such an inDUHvidual, you might point out:

- you got a nav system, keyless entry/start, et cetera, for $17,000 less than he paid
- you didn't buy a Prius to reduce gas expense but to reduce pollution and reduce reliance on foreign oil (if he counters with the Wall Street Journal argument than someone else will just burn that oil anyway, say, that's fine; I chose not to be part of the problem)

[Kiloran]

I think the comments are in response to people touting the gas mileage of the Prius as a reason to choose purchasing a new Prius vs. purchasing a different new car.

It is a perfectly legitimate observation when encountering a Prius owner stating fuel efficiency as the deciding factor.

It would be fair to include the reduction in cost via the tax credit in the calculation as its stated purpose is to cover the incremental cost of the hybrid components.
When the tax credit is factored in, the base models cost roughly the same.
(Camry $18,445 - Prius $21,725 - $3150 = $18575)

[DocVijay]

Originally posted by JackDodge@Jan 6 2006, 10:12 AM
I was behind yet another driver in a major league light-running, lane-jumping, get-out-of-my-way hurry, driving a Cadillac SUV with a manufacturers license plate this morning and the old saw that we hear over and over that the few thousand dollars extra that a Prius costs over a gas-only Camry came to mind.  A lot of us didn't buy our Priuses with the idea that we'd save money in gas, anyway.  However, my car cost $23,000.  If the driver of that Cadillac actually had to pay for his ride; even if it was just a run-of-the-mill $40,000 SUV, it occurs to me that that's an extra $17,000.  If I were to have bought a $40,000 SUV instead of a Prius, how long would it take for me to make up that extra $17,000?  Forever?  Or, would I lose a lot of money?  It just strikes me as asinine for a driver of a $40,000 gas guzzler, that gets less than half the mileage that I get, to be telling me that it'll take years for me to make back the extra cost of a Prius.

[snapback]184746[/snapback]

Well, not really. Cadillac makes no claims of fuel efficiency with their Escalades. Nor do most other SUV manufacturers. It's really a useless comparison. No one buys an SUV in order to save gas. People do however buy a Prius to save gas. We have two SUV's, getting 13 and 18 mpg. I'm driving 120 miles each day now, and that just didn't make sense to still drive the SUV. I bought a Prius for the savings in gas. I'm going to save over $3500 each year, so the difference actually does add up when compared to the Explorer. Now, for comparison, let's say I bought a differnent small, fuel efficient car. Not as good on gas as the Prius, but stil much more so than the SUV. Doing some math, I get savings of around $2200 each year. Now we can compare, does buying the Prius at a premium price make sense when compared to the other fuel efficient car? Is the extra couple of thousand worth the added 10 mpg? I'll only be saving $1300 in gas each year. Now the numbers are harder to justify. That is what you have to compare. Comparing it to a thirsty SUV is a loaded question. For me, it was worth it. I got mine with every option, as I am a total technophile, and love high tech gadgets.

Wondering how long it would take to make up the extra $17,000 from buying the SUV just doesn't make any sense at all. None. You don't buy that type of car to "make up the money." A Prius, however is MOST OFTEN bought for that reason. I think the poll on here showed just that. Mosr people bought theirs because of fuel. Yes, there are some who bought it only for the greater good of hte world.

When we go on long trips, we still take our SUV. Is it better to drive 400 miles at 50 mpg or at 18 mpg? Well, that question has no correct answer. For us it's better to drive the SUV. It's more comfortable, has more room, and is safer.

I'd type even more, but I have to pick someone up at the airport. Gotta go.

[maggieddd]

Originally posted by DocVijay@Jan 6 2006, 10:59 AM
Well, not really. Cadillac makes no claims of fuel efficiency with their Escalades. Nor do most other SUV manufacturers. It's really a useless comparison. No one buys an SUV in order to save gas. People do however buy a Prius to save gas. We have two SUV's, getting 13 and 18 mpg. I'm driving 120 miles each day now, and that just didn't make sense to still drive the SUV. I bought a Prius for the savings in gas. I'm going to save over $3500 each year, so the difference actually does add up when compared to the Explorer. Now, for comparison, let's say I bought a differnent small, fuel efficient car. Not as good on gas as the Prius, but stil much more so than the SUV. Doing some math, I get savings of around $2200 each year. Now we can compare, does buying the Prius at a premium price make sense when compared to the other fuel efficient car? Is the extra couple of thousand worth the added 10 mpg? I'll only be saving $1300 in gas each year. Now the numbers are harder to justify. That is what you have to compare. Comparing it to a thirsty SUV is a loaded question. For me, it was worth it. I got mine with every option, as I am a total technophile, and love high tech gadgets.

Wondering how long it would take to make up the extra $17,000 from buying the SUV just doesn't make any sense at all. None. You don't buy that type of car to "make up the money." A Prius, however is MOST OFTEN bought for that reason. I think the poll on here showed just that. Mosr people bought theirs because of fuel. Yes, there are some who bought it only for the greater good of hte world.

When we go on long trips, we still take our SUV. Is it better to drive 400 miles at 50 mpg or at 18 mpg? Well, that question has no correct answer. For us it's better to drive the SUV. It's more comfortable, has more room, and is safer.

I'd type even more, but I have to pick someone up at the airport. Gotta go.

[snapback]184774[/snapback]

but it makes no sense to make any kind of comparison because you can not buy a nonhybrid Prius. And if you bought a Prius to save money then you can't do math.

[Astrotoy7]

Originally posted by priusham@Jan 7 2006, 02:23 AM
You save money by not spending it.  End of arguement.

Now... I need to eat...

[snapback]184752[/snapback]

thats EXACTLY what I say to people who bring that topic up, in that order too

[aaf709]

Originally posted by Kiloran@Jan 6 2006, 07:57 AM
I think the comments are in response to people touting the gas mileage of the Prius as a reason to choose purchasing a new Prius vs. purchasing a different new car.

It is a perfectly legitimate observation when encountering a Prius owner stating fuel efficiency as the deciding factor.

[snapback]184773[/snapback]

True. Even on PC I see comments from posters that sounds like they heard about the mileage a Prius gets, saw one available and bought it without even a test drive.