So, as per the earlier thread, this is a comfort thing. Some folks may have lots of cash and no job, others may have no cash but dual sixers ($200,000) living in Omaha (where the housing is cheap). Others may have a six figure salary but live in the city (pick one) where rent is high. Yet another may earn $30,000 and can't seem to get ahead now that they bought the Prius (go ahead, sell, get a used Honda Civic. It's okay, your heart is in the right place). Nate
small wad of cash in the bank... a few months' income... after getting screwed on financing/interest/refi we finally are below the purchase price of the car, which was 24500. we make a modest income for 2 people but i am still in grad school and he's just starting a career. living in the RTP area is not the cheapest place ever, rent's not so great and taxes are up there but we go out to eat every now and then and rent movies and stuff and we're perfectly happy. it's the going home to visit people up north that kills us- may only be doing that once a year. we manage quite well overall for our income and will probably have the car paid off 2.5 years from now, i hate paying intrerest to anyone and i'm a wizard at budgeting and scrimping after years of college poverty. i'd also like to build our savings some more before we have kids.
I was looking at more expensive cars but Toyota doing "comercials" for the Highlander on www.wbur.org really got my attention (an SUV with gasoline useage of a compact). It's interesting that both Ford and GM is now making the same plugs there. I guess it really worked huh? (well gm is pushing e85 that can't even be bought in MA but anyway). It made my current car feel old/wrong and the Volvo V70 I was looking for look old as well. So in the end I got a new loaded prius for about the same price as the USED volvo v70 I was looking at (this after tax rebates next year). The prius makes so much more sense and is suprisingly upscale for it's price (apart from the seats). It also had features I was looking at like Bluetooth and GPS that I couldn't find in a used Volvo. The saftey also seems quite good for the size of the car. It's also funny how a Prius gets more attention then my friends BMW's, Lexus' or Volvo's and how they all make up excuses for not buying a Prius. It's a def. hit! It's a cheap car that can play with the big boys
It was the TIMING that got us to dump the 6 banger Hyundai for a Prius. We couldn't afford to pay cash, but we are home equity well off compared to others. The Hyundai would have been much harder to sell than a Toyota or Honda. Plus, the bumper to bumper warranty was going out in 6 more months. The big tax credit closed the deal for us at this time. I don't miss the Hyundai.
wife traded in both our paid off Scions straight across for the 05 Prius. No payments, no fuss. Traded the 01 Insight for the 02 Prius with a few grand added in. My Co-worker has 2 big, big vehicles (type doesn't matter) - payments on his truck is $575. Payments on his wife's SUV is $703. Jeez....and he complains about it.... <_<
Lucky enough to be able to pay cash for mine in 2005. Since I live in Colorado I am getting a little over $3000 tax CREDIT on this years taxes, which I can spread over 5 years since I don't pay nearly that much in state taxes. (Looks like I won't be paying any State taxes for the next 4 years). I'm only getting about $300 back from the feds because I bought the car in 05. So it looks like my fully loaded 05 that I bought for 26000 will end up costing me about 22500 after tax rebates! BTW, my other choices were for a Mazda 3 and an Audi A3. The Mazda wasn't sporty enough (after my Miata) or well optioned enough, and the A3....well I just couldn't bring myself to buy another Audi after the poor reliablitiy of the last one I had. The Prius is the better at doing it's job than any other car I have owned.
I was driving a Sport Trac with 1.9% and 14-15mpg. My Mom could not get into it anymore so I ended up trading it alot sooner than I would have (but at $50+ every 4-5 days it's usefulness was limited). I have a 4.9% on the Prius and get about 44mpg in my area. Now I barely pay $80-100 most months. The payment was $100 more overall but the tax credit, lower $$ for gas, lack of smog, decreased time and money spent on gas and maintenance all make this car way worth it.
Ordered my 2005 in March 2004, received the vehicle in November 2004. Initially financed, but paid off the loan in full within six months. Sold my 1991 Toyota 4Runner via Craigslist.com (was earning 23 mpg). I love every day in the Prius except the lack of 4WD. I had hoped the 2006 RAV4 would be a hybrid, but it is not.
We live in a smallish condo-townhouse that was affordable based on one income, the smaller of the two. This allowed us to quickly pay off all student loans, dramatically pay down the mortgage, and beef up the savings account, workplace 401(k)s and private IRAs. We simply buy very little, accumulate as little as possible, and scrutinize all purchases. Sounds dramatic, but it's that "rainy day" philosphy, which is ironic because I wrote the check for Priapus on a sunny day. And when the HyCam comes out, the trade-in on the Regal will help, but the extreme saving will help the most.
