Prius Premium

No car ever pays for itself, unless maybe it's a taxi or an appreciating collector's item. Whenever someone says to me "You'll never get your money back on that, you know", I reply "Oh? And what are you doing with your car that makes you money?"

If all we wanted and were willing to pay for was basic transportation, we'd all be riding the bus.

Even a bicycle has a 'premium' over a decent pair of hiking boots.

 

That is great for you. I find the size of the Prius to be problem. The size of the Prius prevents it from fitting into my garage. That extra size also makes it more difficult to park. I don't need a car the size of the Prius so added size has no benefit for me.

It is important to think long term. A good tool for this is Edmunds True Cost to Own feature. The Nissan Versa has the lowest TCO I've seen for a new car. True Cost to Own ratings at Edmunds

The $16K 2009 Versa SL CVT comes in at $31,663 for 5 years or $0.42 per mile
The $23K 2009 Prius base comes in at $37,075 for 5 years of $0.49 per mile
(Edmunds doesn't have a TCO for the $10K Versa)

That drops to:
$0.39 per mile for a 2007 Versa
$0.44 per mile for a 2007 Prius
$0.38 per mile for a 2007 Honda Fit
$0.39 per mile for a 2007 Toyota Matrix

A couple of cents per mile doesn't sound like much but over 50 years time it really adds up. Combine lower cost with the added savings of paying cash and using the money that would go to a car payment to pay down other debt and the saving could be huge.

We have a winner!!! 2004 Toyota Echo Sedan
Cash price ------- $7,128
TCO ------------- $25,080
$ / Mile ------------ $0.33
2004 Toyota ECHO True Cost to Own ratings at Edmunds

 

I tried to find the 2010 Versa info, too. I didn't think it was going through a body change for 2010, so I just used the 2009 info (as noted).

Agreed. It is a narrow and tall car, but it is a mid-sized car (just like the Prius), based on total passenger volume.

Clearly, we agree on this. I think it is very important to point out these items when discussing the comparative sizes of cars. The Versa has even more "useless" legroom in the second seat, and it also has more "useless" headroom (I'm certain the 6'6" folks would not think the headroom "useless" -- I apologize in advance). I think it is difficult to find a narrower car than the Prius, without going to a subcompact car. The Versa just happens to be that very narrow car, and this is an important thing for people to know.

I completely agree with you. It really doesn't make sense, in my view, to extend yourself financially to purchase a car. To spend a little bit more to get a lot more of what you want (or for basic safety) is another story. Car loans are things to be avoided, if at all possible.

Even with a high-quality, dependable car (Toyota, Honda), it may make sense to buy an extended warranty when buying a used car. That warranty would cost less than the depreciation hit, so the buyer still would have spent less money than buying new, but will have a longer warranty. It may not be necessary, but for someone who can't afford a non-budgeted $800 repair bill showing up a couple of times, the one-time warranty charge may be worth it. It is a question of sensitivity to risk.

 

If savings is the only criteria, move to an area where you can live within walking distance of work, food etc. Oh, wait, that would be Europe, not the US (and getting less so all the time there). So with our infrastructure layout, we're generally stuck needing personal transportation.

For the least cost per mile, buy a "beater." This is the cheapest thing you can find that runs. Drive it until it quits, then leave it there and walk away. Replace it with another beater. This used to be common for college kids, especially in the Midwest. However, you're giving up comfort, features and, above all, reliability for maximum savings. It all depends on what you need out of your personal transportation.

I have never been without a car payment since 1968. I prefer driving new (or near new) cars under warranty, and am willing to spend the money to do so. I have owned over 60 cars (both transportation and hobby cars). I have friends who, in the same time span, have owned 4 or 5. They drive them into the ground, spend big money on maintenance, and drive them into the ground again, over and over. Eventually the cost of maintaining them exceeds the payments I make on new cars (but they're convinced they're saving money, and besides, they don't have a car payment!).

 

If you are comparing the Versa and the Prius then buy the Versa. You are not in the market for the Prius.

 

"Buy a beater" is the answer? A little more pollution (or a lot), less safety, and then leave it as road kill? Cash for Clunkers can't come soon enough, then! Have all of the college kids buy beaters and then trade them in, with help from U.S., and buy a decent used car.

As you suggest, any one of us can convince himself he is taking the better course, financially, so long as he is sure enough of his position going in.

 

THANK YOU. I should have started reading this thread from the back to the front because you just summed it up precisely.

 

In the Consumer Reports, "Small cars" rating of owner satisfaction:

So you'll save a lot of money with the Nissan Versa and curse it everyday. Still, you'll be happy about all of the money the &3@!%! car saved.

GOOD LUCK!
Bob Wilson

 

What's the number for Prius?

 

93. One of the highest, if not the highest.

 

Convenience and environmental impact are also considerations. We chose our house very carefully, and just about everything we need is within walking distance. It can be done, even in a modern city.

That's what we get for letting the land developers do our urban planning for us. I find the neighbourhoods that grew up around streetcar stops to be the most integrated.

No, you really can't just leave your car for dead, with all your stuff in it, kids still strapped in. I used to keep a bike in the back of the car for those inevitable times the car would quit. Then I got smart and left the car at home. But with a family, and a non-cyclist wife, that's no longer an option. Like you, I've found that car payments are cheaper than repair bills, and with today's low interest rates, borrowing is pretty cheap. Even if it weren't, reliability is worth it.

 

I tossed among Prius, Yaris, and Fit and eventually chose Prius. I decided to save fuel first, then the money. I also like the technology, especially smart key and backup camera. No regrets yet.

 

* didn't like what I wrote, no it wasn't rude or nasty.

 

This is our approach too. I can't say too much about the improvement in lifestyle: not commuting to work, leaving the car in the garage, meeting neighbors on the street.

Unfortunately this is a cultural issue rooted at the very core of modern living. I'm not sure how we can get back to this sort of life style, but I truly believe that most people would find themselves happier and more fulfilled if they could leave the rat race behind and slow down a bit. As it now exists, the job market is too unstable for this to work in general. If you buy a house in a sensible location, your job goes away or moves. There is little long term stability in the U.S. I'm not sure how we will every fix it.

Tom

 

I went from a 35 minute commute to a 7 minute commute, and couldn't be happier. My wife still misses her trees and yard, though. Mixed use real estate development is really a hot subject right now, with a surprising number of legal issues. It was interesting to walk around Paris, where they've been doing it that way for centuries.

 

We moved to the 'burbs a few years ago because my daughter needed a specific program in a school district that wouldn't let anyone in if they didn't live there. We kept our jobs and friends, but gave up a "walking distance to everything" lifestyle for one where we have to drive. I miss it. ::sigh:: Hence, the Prius purchase.

 

I'm using EPA classifications. The EPA bases their classes on interior volume, not whether a vehicle is bigger or smaller than another vehicle. As all vehicles in the US (and Canada) have grown in size from one generation to another vehicles are moving to larger EPA classes.

Search by EPA Size Class

EPA classes:
Minicompact ----------------- < 85
Subcompact ------------------ 85 - 99
Compact -------------------- 100 - 109
Mid-Size -------------------- 110 - 119
Large -------------------------- >120

 

Exactly my situation: I bought my house less than 4 miles away from work, then the company moved to another place about 8 miles, and then moved again now it's 19 miles.