Do You Really Need A Prius To Save Money?

The question doesn't get asked often enough.  Do I really need a hybrid vehicle like a Prius to save money?  The short answer is probably "no" for most people. 

The reason so many people think that they do is the amazing gas mileage. There are some other distinct advantages to owning a Prius over time too. But boiled down to simple fuel cost and resale value, many prospective new Toyota buyers in Oregon and Southwest Washington might want to take another look at some other Toyota models.

After some mileage and gas price assumptions, it's clear that there are at least 4 new Toyota options that either give you more car--or save you a lot more money--over a 5-year ownership cycle than a new 2011 Toyota Prius II. 

Note that these are based on EPA estimated average MPG, not highway.  So folks who drive more than 50% of their miles on highways, freeways, and long-distances between starts and stops, can save significantly more than shown here.  That's because the gas-only Toyota vehicles below typically have a much higher MPG rating while the Prius mileage rating is largely unchanged from city to highway.

New 2011 Toyota Camry LE
Avg EPA Est. MPG: 26 vs. Prius 50
Savings over Prius: $3,284 less at purchase with a net savings for a larger car of about 16 cents-per-month at the end of 5 years. 
So, for about the same 60-month cost, this 4-cyl mid-size sedan offers more room for driver and passengers, and has a massive trunk.  The wider and longer stance may feel more stable to drivers. It has the same STAR Safety System as the Prius plus an extra driver's knee airbag. Drivers of both vehicles have noted a lower amount of road noise in the Camry compared to the Prius. Throw in Camry's fuel-sipping highway MPG of 32, and highway/freeway commuters can save even more money.

New 2011 Toyota Tacoma
Avg EPA Est. MPG: 21 vs. Prius 50
Savings over Prius: $5,921 less at purchase with a net savings for a truck of $3,293, or $54.88 per month at the end of 5 years.
The 4 cylinder, rear wheel drive, regular cab version with an automatic transmission has less cabin space obviously. But the cargo options are nearly limitless. Visibility is fantastic and as with all new Toyota cars, trucks, minivans and SUVs, it comes with the STAR Safety System standard.

New 2011 Toyota Corolla LE
Avg EPA Est. MPG: 29 vs. Prius 50
Savings over Prius: $6,780 less at purchase with a net savings of $6,232, or $103.86 per month at the end of 5 years.
This 4-cylinder sedan with automatic transmission comes well equipped in this trim level with power equipment, rear seat heater, and keyless remote.  It even has heated outside mirrors for those icy Oregon mornings. The trunk space is comparable to the full cargo of the Prius.  If you want your goods covered though, Corolla wins again since only about half of the Prius storage area can be concealed with the tonneau cover. STAR Safety System-equipped, this is great daily driver or small-family vehicle that's just as comfortable in the middle of downtown traffic as a trip out Highway 26 to the coast.

New 2011 Toyota Yaris Sedan
Avg EPA Est. MPG: 31 vs. Prius 50
Savings over Prius: $7,267 less at purchase with a net savings of $7,767, or $129.45 per month at the end of 5 years.
The consummate daily commuter, there's plenty of comfortable shoulder and seat space for the car pool. Generous trunk space abounds and, of course, Toyota's STAR Safety System is included. The Yaris stands well on its own as fuel sipper too.

The bottom line is that there are alternatives if you're buying a Prius to save money at the pump.  While environmental impact and other considerations may push you back towards a Prius, on a pure "$" level, Toyota's Camry, Tacoma, Corolla, and Yaris may be a great solution for you.

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There are some assumptions in the table below but I tried to pick the most common options packages of these vehicles. So they're all a lot easier to find than a Prius II right now.  Pricing is based on today's Wilsonville Toyota No Bull prices right off the website at www.wilsonvilletoyota.com. Toyota cash incentives available to all buyers are included but they expire April 4th, 2011. 

I used a gas price of $3.70 and a low-average driver's mileage of 12,000 miles per year. Fuel mileage data from www.fueleconomy.gov. The residual is Toyota's own lease residual, or guaranteed 60-month purchase price, for buyers choosing to lease with Toyota Financial Services.

Disclaimer: Vehicle and gas prices subject to change. The savings are estimated and will vary based on your driving habits and the other variables noted here.  In other words, use the information for comparison and research, but there are no guarantees implied or intended here.

Miles/year	12,000
Gas $	3.70
Vehicle	2011 Prius II	2011 Camry LE
Model	1223	2532
Trans	CVT	Auto
Avg MPG	50	26
Price*	$ 23,710	$ 20,426 (Save $3284 at purchase)
60 Months Fuel	$  4,440	$  8,538
Price + Fuel	$ 28,200	$ 28,990
Difference WITH 5 Years of fuel		$   (790)
60 Month Residual	$  9,912	$  9,112
Depreciation	$ 13,798	$ 11,314
Retained (price less residual vs. Prius)		$    800
Total Savings		$     10
Monthly Savings		$   0.16 each month
------------- --	----------------------------------	----------------------------
Vehicle	2011 Prius II	2011 Tacoma 4-Cyl
		RWD Reg Cab
Model	1223	7104
Trans	CVT	Auto
Avg MPG	50	21
Price*	$ 23,710	$ 17,789 (Save $5921 at purchase)
60 Months Fuel	$  4,440	$ 10,571
Price + Fuel	$ 28,200	$ 28,381
Difference WITH 5 Years of fuel		$   (181)
60 Month Residual	$  9,912	$  6,438
Depreciation	$ 13,798	$ 11,351
Retained (price less residual vs. Prius)		$  3,474
Total Savings		$  3,293
Monthly Savings		$  54.88 each month
------------- --	----------------------------------	----------------------------
Vehicle	2011 Prius II	2011 Corolla LE
Model	1223	1838
Trans	CVT	Auto
Avg MPG	50	29
Price*	$ 23,710	$ 16,930 (Save $6780 at purchase)
60 Months Fuel	$  4,440	$  7,655
Price + Fuel	$ 28,200	$ 24,614
Difference WITH 5 Years of fuel		$  3,586
60 Month Residual	$  9,912	$  7,266
Depreciation	$ 13,798	$  9,664
Retained (price less residual vs. Prius)		$  2,646
Total Savings		$  6,232
Monthly Savings		$ 103.86 each month
------------- --	----------------------------------	----------------------------
Vehicle	2011 Prius II	2011 Yaris Sedan
Model	1223	1442
Trans	CVT	Auto
Avg MPG	50	31
Price*	$ 23,710	$ 16,510 (Save $7200 at purchase)
60 Months Fuel	$  4,440	$  7,161
Price + Fuel	$ 28,200	$ 23,702
Difference WITH 5 Years of fuel		$  4,498
60 Month Residual	$  9,912	$  6,643
Depreciation	$ 13,798	$  9,867
Retained (price less residual vs. Prius)		$  3,269
Total Savings		$  7,767
Monthly Savings		$ 129.45 each month
*Prices do not include tax (if applicable), title, registration, insurance. $75 Doc Proc Fee + $25 Elec Reg Fee applies to all vehicles