Another step towards being earth-friendly, more money in our pockets, and sticking it to the oil companies! My husband’s car lease is ending soon, so we decided together that the best option would be to get a Prius v to save money on gas. We literally just got the car a few hours ago, and we could not be any more excited! It is definitely the nicest car I have ever owned, but my husband is making some sacrifices on his end. He has always driven nicer cars that have higher ticket prices. He has also always leased his cars, thus meaning to get a new car every three years, and he has no car in the end to show for it.
Even from driving from the dealership to home, the Prius is already averaging 50 mpg! We both are hoping to save a lot of gas money with this car. Sure, it is not our dream car (mine would be a Tesla), but that extra money will allow us to achieve other goals we have and eventually make it to our dream cars one day. We are also saving for a down payment on a house currently, so having a car that saves money and works for both of us is a great thing!
Let’s look at a comparison of his old leased car versus the new Prius.
Old Car: Infiniti G37 with average 19.2 mpg with his driving
New Car: Prius v Three with average 42 mpg combined city and highway
Now if we calculate that he ends up driving about 1,000 miles a month, with gas prices at $4 a gallon in Los Angeles… add in the fact that his old car required premium gas at $4.20 a gallon…
Old Car: $218.75 a month for gas
New Car: $95.24 a month for gas
That is already a $123.51 difference just based off the manufacturer’s estimate! I am sure we can get that mpg up even higher by practicing hypermilling and using eco-mode! Over the course of a year, we are expecting to save almost $1500 just in gas prices alone. Already, that makes a huge difference for our bills every single month. The car payment that we have for 5 years is about $40 more than his old car payment, but that cost is helped by the money we save for gas.
We were able to get a good deal on the Prius v also! The MSRP of a Prius v Three is $28,435 including destination costs. Through internet sellers and shopping around, we bought it at $25,350! Truecar.com, a website that shows you information about car prices and what others are paying, says that a great price is $26,728. The unusually low price is at $25,546! That means we were able to get it below that even! This month there is also a lovely 0% APR for 60 months for people with high credit scores — which applies to us! We are not sure if we should pay off the car earlier, or just do the actual 5 years since it is essentially interest-free. At the moment, it might be wiser to continue saving up for the hefty down payment for a house., then switch tracks to pay off the car early after we have enough saved up.
More good news include a lower car insurance payment. We are both still in the process of combining our accounts and changing names since we got married. Most of our major accounts have been updated, but we still keep finding things we need to do. Passports are one, combining car insurance is another. Since we knew we needed to get another car at this time, we decided to wait until now. We are going to give Geico a try, and by doing so we will save $300 combined! Part of the savings does come from having a car that is of a lower value than his old car. Previously we both had separate insurances that were bundled with family members to help offset the cost. Since we are married now, we decided it was best to have our own insurance, and of course have each other covered under both cars.
Conventional finance wisdom does say that you should never ever buy a new car. It is always better to buy used than new, because the first few years the car depreciates in value a lot. We took this into account in our car search, but ended up going with a new Prius v. Initially we looked at the Prius and the Prius v. Unsure of which car model was right for us in terms of size, we tested both out. With my husband being 6’1″, it was already a much tighter fit in a Prius. Add in the two kids we hope to have in a few years (baby seats being mega huge monstrosities), and the Prius v was the better option.
With that decision, we then looked into used Prius v’s. Unfortunately, it has not been around very long so there were not any we could find. Next, any 2012 models still lying around? We happened to find a few, since Prius v’s are not in as high demand as the regular Prius, but we found that there were no special deals for 2012 models and the financing was at a different APR. The best APR we could find was 2.9%. Our experience with dealerships also found that they were more willing to give deals on the 2013’s rather than the 2012’s.
And so, the Prius v it was! We went with black, even though we did like the white also. The white does come at an additional price of $395! No way are we paying additional for just the color of the car! Cannot wait to see what the real mpg is after breaking it in.
What kind of car do you drive? A hybrid? SUV? Sedan?