High gas prices have made the Toyota Prius hybrid extremely popular. If you want a new one, however, you’re likely to spend months on a waiting list and pay more than the sticker price. Used ones are hard to find and—for now—are selling at nearly new prices.
We wondered how good a buy the Prius might be in the long run. So we used Edmund’s True Cost of Ownership calculator to compare a new 2008 Prius with a used 2006 Toyota Camry. The detailed comparisons are shown below.
As expected, the projected costs of fuel, maintenance, and repairs are lower for the 2008 Prius. But the 2006 Camry costs thousands less up front, so five-year costs for depreciation, financing, insurance, and taxes are a lot lower.
Over five years the true cost to own the Camry is about $3,400 less than the Prius. This is based on 15,000 miles per year. You would have to drive about 25,000 miles/year before the fuel cost savings of the Prius would make the total costs of the two cars about equal.
The Camry we chose for comparison is two years older. But it’s larger, more comfortable, and more powerful car. The 2006 Camry earned 5-star safety ratings for front-seat occupants compared to 4 stars for the Prius. And many would say the Camry is a better looking car.
Current used Prius prices suggest that in the first couple years the Prius will depreciate less than what Edmunds is projecting. But prices of older hybrids are likely to drop rapidly as people face the reality of replacing a $4,000 battery. So we think the projected depreciation over five years is a reasonable estimate.
