Case scenario #1 purchase a new toyota top of the line prius fully loaded for $30K . I picked that car because it has a very high customer satisfaction rate, reliable, low depreciation value, and was my initial choice if I didnt get a volt. You use the car for 6 years and decide to sell because a newer and better car came out. On average I notice everyone around me switches cars once every 3-5 years. By 3-5 years the depreciation value of the prius is down about $5-10k depending on the condition of the car. You are also stuck with an older model/car for longer PLUS higher monthly/down payments. If you do $1000 down with 0% apr payments will be about $500 in an optimal situation. You only break even after 10 years of use for a car.
Case scenario #2 My case. Lease a Volt for MSRP of $31K. I use the car for 3 years and return to get another nicer, newer car. My lease is an ideal/optimal situation because I waited for a good deal before I decided to lease. I paid $1000 out the door down payment which includes first month payment (includes all taxes, DMV fees, etc) and monthly payment of $189. I also qualify for $1500 cash rebate from the state and get a $600 gift card from Costco.
In case you missed some details of the scenario.. here it is in a short and sweet list of what happens after three years.
To buy $18,500 spent over the course of 3 years for a brand new fully loaded prius. ($1000 down+ $500x35 month=$18500) and continue to pay for another 2 years before it becomes mines.
To lease $6,500 spent over the course of 3 years for a brand new base model volt. ($1000 down + $200x35 months -$1500 cash rebate from state) and move on to another deal or buy another car.
In theory there is a $12,000 difference from buying versus leasing over 3 years. Numbers are just estimates. Every situation will be a little different. The prius seems to hold its value pretty well compared to other vehicles. Generally speaking by the end of year three an average car will lose close to half of its initial MSRP value.
For us, after much thought, we agreed that after every 5-7 years we will trade/get another new car. I would also love to hear what others have experienced after purchasing a new car at the end of their five year term. Do you have the urge to look for another newer/improved car with less issues? We personally have an SUV and its a very good car and can last us a long time but we felt that its too expensive to maintain/own and its no longer new to us.
The volt gives us about 35-40 miles range per a full charge which is about the furthest I travel round trip. On average I really travel about 20-30 miles a day for shopping, food, grocery, etc. If I go to work its literally 6 miles round trip. So in theory, on a daily basis I would never really need to pump gas unless I drive around and run errands. Gas on the volt gives me 35-40 MPG which is also pretty good. Only time we would need the gas to kick in would be traveling to SD or LA.
Currently, I pay about $150-200 a month on gas alone driving around town in my SUV. My volt payment is about $200 including taxes. And after the state rebate and costco gift card, i'm probably actually breaking pretty close to even to lease and operate the volt over the course of three years. My down payment was $1000 but I get $1500 from the state so I'm making $500 and getting a $600 costco gift card. If my electricity bill is up by $60-100 (using the highest tier from my electricity bill) a month from charging my car day and night then I basically break even the first full year of use. Also note that I don't drive much so my bill isn't that high compared to someone who drives 20,000 miles a year. I also wanted to mention that owning a new car will always cost money even if you buy or lease. Buying a car would only be worth it if you really keep it for over 10 years. Keeping a car for over 10 years is something our family have decided we won't be doing anytime soon. If everything goes as planned we will have big announcements on our next big purchase for solar panels. If the deal goes through, driving the volt will be free for us. More details to follow in the future.
So in summary, welcome my new Volt.
End of the year is coming up and many places are having really good deals on their leases. I used incentives and stacked a lot of rebates to get to the price I wanted to pay. In the end we decided leasing was a better more affordable option for us since we are planning to install solar.
And honestly, driving a Prius cannot be as fun as driving a Volt. I'm not saying the prius is a bad car, just saying the volt is a better car. In the end, I feel I got more bang for my buck leasing a Volt since I don't use many miles per a year.
The Volt is a really good option if you have low income household rates for your electricity bill. It will cost you as low as $1 a day to charge 10+ hours. But if you are paying premium rates tier 3-4 at $0.30 kw it will cost you $3-4 a day, the prius will be a better deal. We are getting solar so it will be free or at most $1 a day to operate since we will be in Tier 1 costs.
If my theory and calculations are wrong please inform me. I'm very open to discussion since we will need to decide in three years to purchase or lease again.
Update on the Nissan Leaf: My husband loves his car. He was able to get the EZ charge card which gives free charging for stations such as charge point, EVgo, etc. Its one card that works for all the stations. Charging his car is free for the quick charge 30 minutes to charge 80% or one hour of regular charge for the next two years. My husband has not been charging at home at all. He only charges at work and on weekends we charge when we are on the go. A 30 minute wait with free electricity and the AC blast on cold to feed a hungry baby isn't a bad deal in our opinion. The leaf has worked very well for our family. Last week we went to pick up my Volt in Van Nuys and while doing paper work we were able to charge his car at the dealer, so the round trip was free for us.
Here's more information for those interested in the EZ charge card.