Thanks for the additional info Bob. This is what I came up with using the figures you provided from Kelly BB.


Your figures from above:

12,000 mi/yr * 5 years = 60,000 mi.
$08,860 - 2001 Echo suggested retail price
$16,250 - 2001 Prius suggested retail price

24,000 mi/yr * 5 years = 120,000 mi.
$07,250 - 2001 Echo suggested retail price
$13,500 - 2001 Prius suggested retail price

As for new prices in 2001, we priced both locally in Huntsville and bought the Echo:
$14,200 - 2001 Echo purchase price
$21,000 - 2001 Prius offered price


My calculations:

01 Prius 5 yr/120k
$7500 depreciation or 36% depreciation from orig price

01 Echo 5 yr/120K
$6950 depreciation or 49% depreciation from orig price


01 Prius 5 yr/60K
$4750 depreciation or 23% depreciation from orig price

01 Echo 5 yr/60K
$5340 depreciation or 38% depreciation from orig price

There may be a problem with my analysis but what I get from this is that the Prius costs more initially but holds its value better.

One other thing thing that could done is factor in the time value of money over the 5 years for the difference in lower sales price for the Echo and
see where that minus the Echo resale value comes out.

Before tvm it looks like this:

$16250 Prius Resale
- 8860 Echo Resale
$ 7390

or

$13500 Prius Resale
- 7250 Echo Resale
$ 6250

Including tvm getting 5% interest on the $6800 difference it looks like this:

$16250 Prius Resale
- 8860 Echo Resale
$ 7390
- 7699.46 $6800 difference plus interest at 5% over 5 years
$ (309.46)

or

$13500 Prius Resale
- 7250 Echo Resale
$ 6250
- 7699.46 $6800 difference plus interest at 5% over 5 years
$ (1249.46)


This means if I bought a Prius and keep it 5 yr/120K and sell it it will cost me at most $1449.46 more that the Echo over the 5 year period, including the price differential. Using CRs mileage amounts (75K) would make the number between the $1449.46 and $309.46 That's between $5 and $25 per month more.

I am not addressing anything but depreciation here but I think CR really missed this part. I believe they did use a Corolla instead so the numbers might change but I am (just) guessing the result would be similar.

Alden Bowles
2005 Toyota Prius II HSD