How Can a Prius Pay for Itself?

dvdirv · 07-13-2006, 12:17 PM

I'm tired of anti-hybrid critics knocking the Prius (and others) since they claim that the cost savings are not worth the price of the car as compared to a non-hybrid.

These critics don't put the gas savings into a total perspective. Sure I save on gas, but there are other considerations to buying a Prius besides gas savings. Emissions and depreciation are at least two other concerns that most critics miss.

For example, I bought an '05 and 10 months later I traded it in for an '06 . I received $22,000 in trade for the '05 Prius (Package 4) with 12,000 miles. So out of pocket I paid an additional $3800 for the '06 with a package 5. Now when you subtract the tax credit, buying another Prius is a no-brainer. Name another car with such a low depreciation?

Anti-hybrid critics seem to miss this point. They seem to suffer from tunnelvision!

etyler88 · 07-13-2006, 12:30 PM

You can add savings from not doing brake work and timing belt changes.

Should be no brake work for 200k miles and no timing belt ever. So I'd estimate about savings of 2 timing belt changes ($350 each) and one full brake job ($600) through 200k. I'd say about $1500 easy.

**TonyPSchaefer** · 07-13-2006, 01:14 PM

Not all pay-offs are financially based.

Soylent · 07-13-2006, 01:18 PM

LOL nobody said a Prius can pay for itself!

Also, they say that a hybrid car costs a few thousand dollars more than it's non-hybrid equivalent. According to the numbers, the Prius is the only car that ends up costing the same as the non-hybrid, because of the savings in gas (after 5 years or so). So actually most reviewers say the Prius is the best choice

hyo silver · 07-13-2006, 01:28 PM

No other car pays for itself. Why are we always being asked to justify a Prius?

Actually, I like Tony's answer best. But that's part of why I walk to work and this little Prius stays home.

dancekat59 · 07-13-2006, 01:48 PM

The biggest payoff for me is the time I save by being able to use the HOV lane.

TJandGENESIS · 07-13-2006, 02:08 PM

<div class='quotetop'>QUOTE(dvdirv @ Jul 13 2006, 12:17 PM) [snapback]285661[/snapback]</div>

Quote:

I'm tired of anti-hybrid critics knocking the Prius (and others) since they claim that the cost savings are not worth the price of the car as compared to a non-hybrid.

These critics don't put the gas savings into a total perspective. Sure I save on gas, but there are other considerations to buying a Prius besides gas savings. Emissions and depreciation are at least two other concerns that most critics miss.

For example, I bought an '05 and 10 months later I traded it in for an '06 . I received $22,000 in trade for the '05 Prius (Package 4) with 12,000 miles. So out of pocket I paid an additional $3800 for the '06 with a package 5. Now when you subtract the tax credit, buying another Prius is a no-brainer. Name another car with such a low depreciation?

Anti-hybrid critics seem to miss this point. They seem to suffer from tunnelvision!

[/b]

Well, my '05 Scion xA got $12,000 for me when I traded it on my '07 HyCam.

And I paid only a little over $13, 000 for the xA new. Of course, I had 10,500 miles on it, or so. And the car was in MINT shape. However, I think with my '05 Prius, when I get to the trade in point (which will be for the Next Gen Prius), I will have close to at least 30,000 miles on it. Still should be in mint shape. I wonder what it will get then?

mike b · 07-13-2006, 06:46 PM

It feels like it's paying for itself. I traded in a 2005 VW Touareg V8 that I loved for the 06 Prius. Car payments are the same, however...

I was paying $80 a week to fill up the Touareg and now I am paying $100 a month (maybe). The monthly savings pays my car payment, I can get home faster (HOV), which means I can work later (make more $), there's the tax credit and I feel great about driving. I think the Prius is paying for itself and more.

jmann · 07-13-2006, 07:05 PM

As an Electrical Engineer (who saw this as an engineering problem) I calculated the savings in total cost of ownership. I forgot the details but basically the saving were-----

Total cost of ownership of a car has about four major contributing parts, in order:
1) purchase price of car (or more correctly, depreation)
2) Cost of fuel
3) insurance
4) maintnaince

I calcuated my saving as

+ $6000/100000K miles in fuel,
+ $1000/100000K miles in oil changes (plus you can do the rest yourself because the filter is easily accessable,
+ $3200 Tax credit
+ $100 Misc discoiunts over lifetime such as AAA membership discount
+~$4000 (estimate in five years) Significantly altered depreciation curve. (it is definatly not 200% Declining Balance with 7 years life like most cars)
[+ $10000 200,000K+ miles funcitonal life - Twice that of a $18K "american car" like a Grand Am with 100000K Mile life]
+ $180 better finance rate (I was offered a .2% better rate, I presume it was classified as a luxury car because it depreciated slower)
+ $1000 No "real" maintnaince for atleast the first 100,000K miles (no break pad changes, etc.)
= Approximatly equievient insurance to all other 4 door four cylinder cars
- $3000 Purchase Premium (highly demanded car premium)

So I estimated my total cost of ownership savings at around $10,000 for five years/75K miles or around $20,000 full life cycle of the car, taking into account its 10-12 year life.

Once you shift the costs of ownership and savings into present worth (from summed annual worths), the number is around $12000 savings for five years ownership, or THE COST OF THE CAR over it life. In reality, however, technology will most like catch up with the prius and the "total cost of car" estimate will never be reached. But the savings over five years is a very real estimate.

powphilprius · 07-13-2006, 08:10 PM

I bought the car mostly because I knew I would enjoy learning the technology like a new toy, (and I have), needed a new car badly (and good AC), and gas was skyrocketing in price. Since then the calculation is my gas savings cancels the interest on my loan. Even if the car doesn't pay for itself it made good sense for me!

07-13-2006, 12:17 PM	#1
dvdirv Join Date: Jun 2005 Location: Indianapolis Posts: 113 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I'm tired of anti-hybrid critics knocking the Prius (and others) since they claim that the cost savings are not worth the price of the car as compared to a non-hybrid. These critics don't put the gas savings into a total perspective. Sure I save on gas, but there are other considerations to buying a Prius besides gas savings. Emissions and depreciation are at least two other concerns that most critics miss. For example, I bought an '05 and 10 months later I traded it in for an '06 . I received $22,000 in trade for the '05 Prius (Package 4) with 12,000 miles. So out of pocket I paid an additional $3800 for the '06 with a package 5. Now when you subtract the tax credit, buying another Prius is a no-brainer. Name another car with such a low depreciation? Anti-hybrid critics seem to miss this point. They seem to suffer from tunnelvision!

07-13-2006, 12:30 PM	#2
etyler88 etyler88 Join Date: Mar 2005 Location: Dover, DE Posts: 443 My Car: 2005 Prius Package: #3 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	You can add savings from not doing brake work and timing belt changes. Should be no brake work for 200k miles and no timing belt ever. So I'd estimate about savings of 2 timing belt changes ($350 each) and one full brake job ($600) through 200k. I'd say about $1500 easy.

07-13-2006, 01:14 PM	#3
TonyPSchaefer Ruler of Omicron Persei 8 Join Date: May 2004 Location: Far-North Chicagoland Posts: 7,688 My Car: 2004 Prius Package: #9 Nominated 4 Times in 2 Posts TOTM Awards: 0 Friends: 14	Not all pay-offs are financially based.

07-13-2006, 01:18 PM	#4
Soylent Senior Member Join Date: May 2006 Posts: 245 My Car: 2006 Prius Package: #3 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	LOL nobody said a Prius can pay for itself! Also, they say that a hybrid car costs a few thousand dollars more than it's non-hybrid equivalent. According to the numbers, the Prius is the only car that ends up costing the same as the non-hybrid, because of the savings in gas (after 5 years or so). So actually most reviewers say the Prius is the best choice

07-13-2006, 01:28 PM	#5
hyo silver and awaaay! Join Date: Mar 2005 Location: Vancouver, BC Posts: 6,316 My Car: 2004 Prius Package: Base Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 23	No other car pays for itself. Why are we always being asked to justify a Prius? Actually, I like Tony's answer best. But that's part of why I walk to work and this little Prius stays home.

07-13-2006, 01:48 PM	#6
dancekat59 Join Date: May 2006 Posts: 220 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	The biggest payoff for me is the time I save by being able to use the HOV lane.

07-13-2006, 06:46 PM	#8
mike b Join Date: Jun 2006 Posts: 10 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	It feels like it's paying for itself. I traded in a 2005 VW Touareg V8 that I loved for the 06 Prius. Car payments are the same, however... I was paying $80 a week to fill up the Touareg and now I am paying $100 a month (maybe). The monthly savings pays my car payment, I can get home faster (HOV), which means I can work later (make more $), there's the tax credit and I feel great about driving. I think the Prius is paying for itself and more.

07-13-2006, 07:05 PM	#9
jmann Senior Member Join Date: Dec 2005 Location: Cleveland, OH Posts: 148 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	As an Electrical Engineer (who saw this as an engineering problem) I calculated the savings in total cost of ownership. I forgot the details but basically the saving were----- Total cost of ownership of a car has about four major contributing parts, in order: 1) purchase price of car (or more correctly, depreation) 2) Cost of fuel 3) insurance 4) maintnaince I calcuated my saving as + $6000/100000K miles in fuel, + $1000/100000K miles in oil changes (plus you can do the rest yourself because the filter is easily accessable, + $3200 Tax credit + $100 Misc discoiunts over lifetime such as AAA membership discount +~$4000 (estimate in five years) Significantly altered depreciation curve. (it is definatly not 200% Declining Balance with 7 years life like most cars) [+ $10000 200,000K+ miles funcitonal life - Twice that of a $18K "american car" like a Grand Am with 100000K Mile life] + $180 better finance rate (I was offered a .2% better rate, I presume it was classified as a luxury car because it depreciated slower) + $1000 No "real" maintnaince for atleast the first 100,000K miles (no break pad changes, etc.) = Approximatly equievient insurance to all other 4 door four cylinder cars - $3000 Purchase Premium (highly demanded car premium) So I estimated my total cost of ownership savings at around $10,000 for five years/75K miles or around $20,000 full life cycle of the car, taking into account its 10-12 year life. Once you shift the costs of ownership and savings into present worth (from summed annual worths), the number is around $12000 savings for five years ownership, or THE COST OF THE CAR over it life. In reality, however, technology will most like catch up with the prius and the "total cost of car" estimate will never be reached. But the savings over five years is a very real estimate.

07-13-2006, 08:10 PM	#10
powphilprius Member Join Date: Sep 2005 Location: Albuquerque Posts: 66 My Car: 2005 Prius Package: #3 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I bought the car mostly because I knew I would enjoy learning the technology like a new toy, (and I have), needed a new car badly (and good AC), and gas was skyrocketing in price. Since then the calculation is my gas savings cancels the interest on my loan. Even if the car doesn't pay for itself it made good sense for me!