I was actually going to post about this yesterday, when the Toyota Camry hybrid arriving in 2006 was still just a rumour. Because the Accord and Camry are the market leaders in the midsize sedan market (third place is I believe, the Ford Taurus), having hybrid versions of these midsize cars is a wonderful option. However, with hybrids costing 5 to 6 thousand dollars more than a similarly equipped model, will they be as popular?
Due to my commute (which is 31 miles each way), I've been considering changing my commuter vehicle from the Celica to a new Prius. Economically, switching cars would make some sense -- a lower cost of insurance and gasoline. I will admit that I am a somewhat special case -- I don't think most people have commutes like mine, and even if they don't, at the current prices it's saving 3 to 5 cents a mile. For me, it would basically amount to saving about $100 a month in gas. Of course, these savings are offset by the cost of a new car.
Consider this: A new Prius will cost $20,000 + taxes, fees and registration. Putting $20,000 into a one year CD at 1.88/APR1.89. You manage to earn $380.60 in interest, of which $121.03 is given to the government via taxes, leaving you with $259.57. As long as you save more than $260, one could make the argument that it's money well spent.
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