Hi all ... I've been kicking Hybrid tires for 2 months now and am ready to buy with Cash in hand. Deposit on 2006 HCH ... BUT ... as we're on the cusp of a new model year (seeing 2007 Camry arrive now), I have a few concerns:

Background:
I've got a decent yet aging Volvo wagon that may need to be fed a few thousand dollars soon. Also have a newer 4x4 and only a 30 mile daily commute, so buying Hybrid is more for long term warm and fuzzy feeling and the practicality of holding decent re-sale for future (yes ... I know most cars are money pits, but still holding out some hope to buck the norm by going Hybrid - am I dreaming?).

I've decided that while I lean towards the Prius Hybrid implementation with it's larger electric motor and more true EV driving time at low speeds, as well as the Prius larger hatchback storage capacity, I far and away prefer the look of the HCH (to the point of saying no to this version of Prius). I also prefer the handling characteristics of the HCH (yes, I've driven both) and lastly, the HCH's appx. $5,000 CDN savings over the Prius is a clincher.

Questions:

1) Will the HCH 2007 version have any changes that bring it closer to the Prius capacity of handling more storage (i.e. Fold Down Rear Seats), or any other changes of significance for that matter?

2) Will the Prius Hybrid Drive VERSION 3 and it's reported *significant increase in battery strength at lower weight and cost, be out any time soon, or is this a bait and hold tactic that may be some time coming to fruition (I've heard 2008 and also heard 2009)?

3) How much of a hit might I take if I drive the current HCH for a year or two (low mileage use) and then trade it in/sell it, and buy a version 3 Toyota Hybrid (or another brand) when they do actually hit the streets? Guestimates anyone?

At this stage, with many more Hybrids likely available in the coming years from numerous manufacturers, and Toyotas claim to be making ver 3 cheaper, stronger, and longer life batteries (I've seen rumour of 85 MPG but we all know how rumours go) , is it really smart to be dropping cash on a car (that I really don't absolutely need - the volvo is still holding together) that may/will/might depreciate significantly as more perhaps stronger EV Hybrids start to come available?

Looking forward to hearing your thoughts,
Drew in B.C.