[puddleglum]

In option 1, you no longer need the Matrix so you can deduct its value from the cost which may make that option a better deal. Thanks for the link to the Plug in supply site. If their system really does raise the top speed for EV mode, that would make it much more attractive. I read somewhere recently, though, that the electric motor in the Prius (possibly others as well) could be damaged in the long term by forcing it to overspeed. I don't know if that is true or not.

In option 2, if you waited for a newer car with a blown engine,I think you could cut that $5000 down to under $2000. Also, do you really need 100-120km range. If you do then you do, but have you actually tracked how far and how fast your trips are to verify that you need that range? you might be able to save a little there too which may offset the cost of having three cars.

Which is better,it could be either one. I think it really depends on your personal needs and likes. How many kms you drive city vs highway, how many kms/yr, which one will save you more in the long run and whether or not you really want to do another conversion, all need to be factored in.