Here’s a terrible thought: you’re planning to trade in your gas guzzler for a Toyota Prius, that famed hybrid car offering industry leading fuel economy, when you learn that the price you can expect to pay for the car has increased by $650. Sure, car prices go up all the time, but when you realize that 
the cost of the car has now topped $22,000, you begin to wonder if your investment in worth it.
Like all automotive manufacturers, Toyota is feeling the heat from skyrocketing raw material costs, including steel, and needs to recoup these increases by selling their cars for more money. However, this news may cause consumers to weigh their options including foregoing the hybrid for an economical gas model, such as the Toyota Yaris, a commuter car that gets 35 mpg and sells for $10,000 less than the Prius.
Some would argue that a hybrid car is always of more value than a gas model, particularly a car that returns at least 45 mpg on the highway, an advantage of 9 mpg over the Yaris (14 mpg combined city/highway). But, as consumers can quickly see, making up the cost differential between these two Toyota models can take years even if gas goes back up to $4 per gallon.
Let’s take a look at a chart comparing the Prius and the Yaris to see what kind of savings is realized after about seven years of driving or 100,000 miles:
Toyota Prius
- Gas: $4.00
- Miles Driven: 100,000
- Fuel Economy: 47 mpg combined
- Gallons Used: 2127
- Cost: $8511
Toyota Yaris
- Gas: $4.00
- Miles Driven: 100,000
- Fuel Economy: 33 mpg combined
- Gallons Used: 3030
- Cost: $12120
In the seven year time frame you would save $3609 in fuel, but still fall short by about $6400 for what you paid for the Prius. Of course, if you’re comparing your Prius purchase with getting rid of your 20 mpg combined city/highway 4WD Toyota Tacoma pickup truck, you would come out exactly even at the end of those seven years. Two very different vehicles I might add, a radical lifestyle change you’ll need to be prepared to make.
I’m not saying to avoid buying the Prius or any other hybrid and federal as well as state tax credits could make your purchase more affordable. What I am saying is that if you’re panicking over high gas prices and think that a hybrid model is always the answer, you could be wrong. Unless, of course, you plan on keeping your car for many, many years as a long term investment in your fuel conserving effort.
Copyright 2008-2012 — Matthew C. Keegan is the owner of a successful writing and marketing business based in North Carolina, USA. He manages several websites and is a contributing writer for Andy’s Auto Sport, a retailer of quality Lamdo doors and ground effects.
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