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Stevey - I have read/heard very few problems with the Gen II Prius and suspect the Gen III will be just as reliable. Many new Gen III owners are reporting slightly better highway mpg's (in the 2-3 mpg better than the Gen II produced).
Guud - I also do not recommend "buying your way to better mpg's" as it really doesn't prove anything or help your pocket. In my case, I was fortunate because I have a similar payment but 40+ more mpg's from my 4runner to the Prius. As I said before, any gas savings is pure profit over the time of my loan.
EVD - I like the "rent/borrow" idea as it will give you a chance to see what you can actually get in terms of highway mpg. Test drives are great but you rarely get the chance to put your driving skills to the test with a salesman in the car with you (and he's not going to take a 100 mile trip with you to see how it does on the highway).
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