Do Prius hybrids pay off easier than expected?
I sure would like to see more details on this: Topline Strategy Group says its found - contrary to some previous studies - that Prius drivers do get a return on their initial increased hybrid cost. The problem is that I've found this study mentioned on HybridCars.com but while the Topline Strategy Group website does list the study on its press page, the link to the actual release returns a "not found" message. Hopefully, they'll get that link fixed soon.
For now, let's work with what we know from HybridCars: by putting flyers on Prius windshields, TSG found that all Prius owners were "very happy" (88 percent) or "somewhat happy" (12 percent) with their cars. They're also mostly well-to-do (71 percent earn more than $100,000 a year), male (58 percent) and over 40 (73 percent). But, the headline that hybrids (or at least the Prius) pay for themselves, is only hinted at with the line, " Most of the respondents used longer periods of ownership and higher gas prices than usually used by journalists. As a result, the shoppers found hybrids to be a compelling financial transaction."
We'll see if TSG puts their release online and then return to analyze it a bit.
[Source: HybridCars.com]
Reader Comments (Page 1 of 1)
Barry 11:52AM (4/27/2008)
I am retired and looking at a new Prius. I live on my SS and investment interest which is a low 3.5% right now. I did a little math to see what the end cost would be if I paid cash for the car and lost the interest on the $$.
I have an old car worth about $2000 so after taking that amount off the price, adding an additional $14/ month for insurance and $12/ month property tax (South Carolina) my monthly loss to income would be $87.25
I took 2 years of records for gas I bought and divided by 2 ( Prius should get at least 2x ) the mileage of my current car. I then took past two years of maintenance cost and divided by months to get an average. Total of both averaged $110.77/ month.
Adding the loss of interest and the savings of gas and maintenance I would actually save $23.52/ month. This means the Prius would be Free and I would get $23.52 back. This does not take into account where gas prices are going now!
Now all I have to do is pick out a color!
Barry
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H D Pigott 6:44PM (4/23/2007)
My wife and I each own a Prius. As we compared costs we found it tough to make an apples to apples comparison because of some features in the Prius that are not common in similarly priced cars. By my estimate, the premium paid for the hybrid technology is about $1100/vehicle, and it's recoverable in fairly short order with $3.00/gal gasoline.
The environmental benefits are free!
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M S Bachrach 10:35PM (4/23/2007)
It is very difficult to determine what the payoff might be. The car is very comfortable and quiet. It sits perfectly still at a stop light. Runs on electric while in traffic jams on the interstate. People pay 10,000 extra for leather seats, fancy radio, fancy wheels and pin stripping. What is the payoff time for those options. I don't care about the payoff. I could not imagine being vibrated while sitting at a stop light. How can people live that way?
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Chris M 1:54AM (4/24/2007)
Contrary to what some fearmongers would have you believe, hybrids are highly reliable and have lower than average maintenance costs.
They also tend to depreciate far less than most other cars.
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Mark Derail 2:45PM (4/24/2007)
Check out my comments and others on Dvorak's blog today, on how Toyota is now #1 surpassing GM.
http://www.dvorak.org/blog/?p=11047
When you factor in general maintenance, gas savings, and extremely high resell value, the Prius is by far not very expensive.
Plus the fact that you can easily have it upsized to Plug-IN EV-30, for a total combined price cheaper than a Mini Cooper Electric or Zap's -X eletric car.
For myself, if I had the Stealth Switch (in Canada/US not present) and EV-15 plug-in, I would be 95% gas free usage every month.
I justified my purchase to (Canadian $) :
Toyota Sienna
- 500$ per month payment
- 300$ per month gas
- $ maintenance
To
- 750$ per month payment
- 60$ per month gas
- much much lower $ maintenance
Brake job alone on the Sienna cost me 800$ after four years.
I got back about 25% of the initial purchase $ for the Sienna w/130,000KM.
With 50%+ with the Prius, I now have a rough equivalent dollars wise.
The environmental benefits are free!
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Hybrid Car Rental 8:40PM (5/06/2007)
I just rented a Prius and loved it. I think that the more people see and drive hybrids, the smaller the premium on hybrids will get. You can get all sorts of information and even a coupon to save 10% on renting a hybrid car from www.hybrid-rental-car.com
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