(I didn't find this in a search) It beeps inside the car but (I'm giuessing) not outside. Why? What purpose does this serve?
Both the Gen I and Prius C have "conventional" style shift levers (PRNDB) that the driver can tell what gear is selected by sight & feel, as well at the display. With the joystick shifter on the G2, G3, V, & PIP, the lever always returns to home position, and it may not be as easy for the driver to determine what gear is engaged. The interior reverse beeper is likely there for this reason, on models with the joystick shifter. Read more: http://priuschat.com/threads/still-beep-in-cabin-in-reverse.110242/#ixzz2B8qS0tvP