The government gives a big credit. The car companies want that money so the price is raised so that they get the credit. You think you get a good deal.

The solar companies did that years ago. They could sell a solar system for $3000. The government gave a $1000 credit. So the selling price was $4000 - you got the credit - your net price was $3000. Similarly, when all the credits on cars are gone, the prices will go down. Even w/o credits, Toyota keeps their prices higher than they should because the other companies include the credit in their price so Toyota can increase its price too.

 

While it is certainly an interesting vehicle, its estimated mileage (under 100 mpg equivalent and perhaps well under100 mpg equivalent) is less than stellar all things considered. Its batteries store a lot of energy and the vehicle uses a lot of energy. Considering a carefully driven Prius can get around 60mpg with a significantly extended range over the Leaf, the practicality of the Leaf remains questionable.

 

We've run the numbers and expect the Leaf will save us about $100/month over our 2002 Prius.