Buying a Prius - need advice urgently

Dear Prius Lovers,

I have moved to Minneapolis, Minnesota (yes, it's indeed very cold!) and would need to purchase a car asap.

I would like a car with low cost of ownership and good safety. My shortlist now is Prius, Corolla and Honda Civic models 2004 - 2009. I'd plan to keep the car for 2-3 years (in an exceptional case 5 years). I like the idea of a hybrid car, have been researching about Prius for weeks now and my only concerns are about the total cost of ownership: I am worried with the fact that it would cost more to own than a Corolla/Civic because of the HV battery/electronics/specialized mechanics charging more for repairs. Also, in Minnesota Prius is not as popular as in the Bay Area. Priuses in my area below 200K range from 3500 - 6000$, same for Corollas and Civics.

As I said, safety is important to me and I would like to have stability control (VSC) because of slippery roads here. The Corolla may have VSC from 2009 as an option, whereas Civic only from 2010 onwards unless it's a special sports model. Therefore, Prius becomes the obvious first candidate.

Conditions of use:
- keep for 2-3 years
- cold weather 4 months of the year, with temps below 0 F, a lot of salt on the roads in the winter
- around 15000 miles a year, one cross country road trip per year, otherwise 10-15 miles commute each day (75% highway, 25% city)
- budget: 5K-6K $ for purchase, not more than $4200/year for all of its costs ($1500 insurance, $750 gas, $750 depreciation, $1200 repairs & maint). I am willing to spend more only on gas if prices go up.

Up till now I have found a 2007 Prius for $4600, with stability control (VSC), backup camera, 152K miles, red, clean title, service record available (all service done at Toyota up to 149K miles), 2 keys. It had 2 owners (at least that's what I know). Second owner bought it in Nov 2015 at 149K miles and sells it at 152K mentioning that the car is too small for a growing family.

Upon inspection:
- I could get 40 mpg running 75% highway, 25% city, 45 if running like a snail and with A/C off, temp below O F, 3 tests of 15 miles each to factor for cold engine, different styles, etc.
- There is a noise in the front right side like a medium size box would be slammed up and down when running over bumps on highway (can be heard only without music or A/C), quite worrying for me. Also, a bit of a rattling left-right where the front begin, noise can be heard when driving (fine noise, I guess normal for the age of the car), like when pressing a squeaky lid (not that intense though).
- No rust, except some bolts under the hood and some elements around the hood and under the car - something I've seen with other cars. No rust on body. Minor blemishes on bumpers.
- Filters clean, oil about 1/3 to 1/2 full, color brown.
- Interior fine, rear headlight has a small hole, under the car in the front the plastics have been torn apart a bit, probably from a malfunctioning strut (hence the noise in the front right of the "moving box"?) - nothing major though. Could be from parking, grasping the sidewalk.
- No smell, vent in the back looks clear. Inspected 12V battery, no corrosion.
- Maint mode: 12V battery voltage with engine on 14.2V, car starts below 0 F without problems
- tires about 60% of their life, spare tire and all that. spare tire is like 30% usable.
- no noise on turning left/right, only when passing over bumps, including highway bumps.

Negotiation: upon inspection, negotiated to $3800 to factor possible repairs, this would be the Blue Book value for condition Fair (lowest!). I would try to get to $3500.

Service History:

Period Miles Company Work done

• Aug-07 Unknown Toyota Dealer 1 Pre-delivery inspection completed
• Aug-07 Unknown Toyota Dealer 1 Engine serviced, body electrical system checked
• Dec-07 Unknown Toyota Dealer 1 Oil and filter changed, tires rotated
• Apr-08 9K Toyota Dealer 1 Vehicle serviced
• Apr-08 9K Toyota Dealer 1 Oil and filter changed
• Oct-08 16K Other Service Vehicle serviced
• Dec-08 19K Toyota Dealer 2 Wiper(s) replaced
• Apr-09 24K Toyota Dealer 2 Maint. Inspection, oil and filter changed, tires rotated
• Sep-09 34K Toyota Dealer 2 Oil and filter changed, tires rotated
• Sep-10 44K Toyota Dealer 2 Recommended maint performed, maint inspection completed, cabin air filter replaced/cleaned, interior trim checked, battery serviced, air filter replaced
• Jun-10 55K Toyota Dealer 2 Battery/charging system checked, tires rotated, oil and filter changed, engine checked, engine serviced
• Dec-10 64K Toyota Dealer 2 Oil and filter changed
• Mar-11 68K Toyota Dealer 2 Oil and filter changed, battery/charging system checked
• Aug-11 Unknown Toyota Dealer 2 oil and filter changed
• Dec-11 87K Toyota Dealer 2 Maint. Inspection completed, recommended maint performed, battery/charging system checked
• Jul-12 98K Toyota Dealer 2 Battery/charging system checked, oil and filter changed, tires rotated
• Aug-12 101K Toyota Dealer 2 Floor mats installed
• Dec-12 108K Toyota Dealer 2 Battery/charging system checked, oil and filter changed, floor mats installed
• Jan-13 109K Toyota Dealer 2 floor mats installed, battery/charging system checked
• Feb-13 110K Toyota Dealer 2 tires rotated, battery/charging system checked, floor mats installed, one tire mounted
• Jul-13 119K Toyota Dealer 2 oil and filter changed, tires rotated, battery/charging system checked, floor mats installed
• Nov-13 128K Toyota Dealer 2 battery/charging system checked, floor mats installed
• Nov-13 128K Toyota Dealer 2 floor mats installed
• Dec-13 129K Toyota Dealer 2 air filter replaced, cabin air filter replaced/cleaned, floor mats installed, battery/charging system checked, oil and filter changed, tires rotated, air filter checked
• Mar-14 132K Toyota Dealer 2 battery/charging system checked, exterior lights checked, floor mats installed
• Jul-14 141K Toyota Dealer 2 tire repaired, floor mats installed
• Nov-14 144K Toyota Dealer 2 floor mats installed, oil and filter changed
• Dec-14 146K Toyota Dealer 2 exterior light bulb(s) replaced, light bulb(s) replaced, battery/charging system checked, exterior lights checked, floor mats installed
• Mar-15 149K Toyota Dealer 2 maint inspection completed, recommended maint performed, cabin air replaced, cleaned, floor mats installed

Questions:

- What shall I do? Buy it at $3500-3800?
- Is it necessary to take it to a service inspection? If yes, do you know anyone in Minneapolis that could do it relatively cheaply?

My point is that I would very much like to have a Prius, but if this means a serious risk of huge expenses (HV battery $2000, transmission, struts $500+, etc. and if my total cost of ownership for the 15000 miles/year for the next 2 years would be lower with a Corolla/Civic, then I'd go for the latter. Also, if I decide to sell it short notice, I want to make sure the car is in demand and I don't trade it for pennies (this is also included in what I call "cost of ownership" - how much do I lose in total till getting rid of it). Prius has the big advantage of stability control, which really matters for me though. Hmmm...any advice?

Thank you so much for reading through!!! This is a great community I follow for some time.

 

I have looked at the Corolla and Honda, but not as much as for Prius.

I would say:

Corolla
Pros:
- better MPG than Civic (by 2-3 MPG)
- might have stability control as an option from 2009, though 2009 is slightly >6000$, kind of over budget
- cheaper service?

Cons:
- lower rating for safety (in line with Prius)
- looks worse than the Civic (models 2004-2009)
- lower MPG than Prius

Civic:
Pros:
- better safety

Cons:
- stability control only after 2010, which I can't afford at the moment
- lower MPG than Prius

Prius
Pros:
- stability control! Safety overall in line with Corolla, though smaller.
- better MPG than anything else
- brakes last longer, generally reliable mechanically speaking
- backup camera (possibly) and generally hi-tech
- gives you the feeling of a sophisticated person somehow


Cons:
- risk of electric components failure (would cold weather below 0 F pose more risk?), especially HV battery that will need to be replaced at some point
- New to the US (no one to help towing or getting cheaper service/help), if the HV fails or any other component and I'm stuck, I have to pay towing from my 5000 miles road trip + HV battery + specialized service. This worries me the most as much as I love the Prius...
- service is specialized for hybrids, more expensive
- less cars in Minnesota than Bay Area for example to easily say I can use salvage parts easily. Still Prius is reasonably popular here as well.

My concern when buying a car (my first car by the way) is that for this price I might buy a car because the owner has taken the benefits and is transferring the costs of ever increasing repairs now. Luck plays a role, but if you guys can help me avoid major wrong decisions, I'd take a calculated risk at least. There's no real guarantee, I know.

A 2007 Corolla would cost 2500$ for 250K miles, clean title for instance, but worn out. I would find a 2005-2006 for less than 5000$ and at around 150K. Same for Civic, though these tend to be around 500$ more expensive here on average, or should I say 20%.

More opinions...? Thanks so much for stopping by and sharing an opinion. It's my first car and I want to make a good decision. Like I said, I plan to keep it for no more than 2 years and I might want to sell it short notice.

 

Thank you, any more opinions?

 

Thank you guys. I have the following updates.

1. Prius 2007 above

With the 2007 Prius owner above that bought the car in Nov 2015 and is selling now, when asking if it is possible to have a mechanic inspect the car (after negotiating from 4600 to 3800 due to the front right noise), I got the following reply:
"Not saying I would not also do the same (that is have a mechanic check a car prior to buying), but seriously it's a 2007 it's not a new car, it will require repairs and at this point I have reduced the price all the way to lowest value on car via Kelly blue book. So if you do not want to get into repairs you should look for a newer car. I did not buy it to sell in the first place but my circumstances (having another kid) here where I live is why I'm selling. We also do not want to lose money we invested, but with the low price I have given we're already losing money".

My mind got stuck to this car, it's a good price, it has stability control, it's red, bla bla. However, are these signs that something shady happened since the owner is selling after 2.5 months, drops the price sharply and is incomfortable about having an inspection? I shall mention I was quite aggressive with showing the weaknesses of the car and sharp also on negotiation so the woman might have gotten annoyed.

2. Prius 2008 - tested today

This one has 132K miles, $6K negotiated to $5.5K, traction control & backup camera, 45-50 MPG without the same struggles as with the 2007 above, runs great, no pronounced noises, color black. Interior looks very stained. The screen shows a red triangle with an exclamation mark and it stays on all the time. I thought this is the red triangle of death. The 12v battery changed in 2014, no service records because the man has done maintenance himself (DIY), he's not a mechanic though, so absolutely no assurance. Clean title. Decided to walk away because of the red triangle that the seller says it's because of tire pressure sensors which I don't believe and because of relatively high price.

 

I have seen a Corolla today with 162K miles, 5K $ from a dealer that ran perfect, but had warning lights and was involved in a mild accident. I steered away.

My mind is still to the '07 Prius, the owner agreed to take the car for inspection finally if she can be present as well. I guess private owners are not so used with letting the car go for inspections/drive tests as much as dealers?