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Very impressive mpg in your Camry! I'm only managing 32 mpg in my 1998.
There is so much more to consider when purchasing a car than the information you have provided. How many miles do you drive in a year? How much of that is highway vs city? What tasks do you need a vehicle to perform?
Based on the little information provided, your Camry has averaged 7,000 miles per year. At 40 mpg, you consume 175 gallons per year. At $3.50/gal, your total yearly fuel bill is $613.
Assuming you get 50 mpg in the Prius, you would consume 140 gallons and spend $490 in fuel in a year.
The total saved on fuel by driving the Prius would be $123 / year.
I'd be inclined to keep your lower mileage Camry. It's impossible to know what condition the Prius battery pack is in before purchasing, so that is a valid concern.
That said, I am driving a 1998 Camry (240,000 miles) and in the hunt for a 2010-2012 Prius due to the utility of having a hatchback. Plus I like all the wiz-bang gadgetry. It's also nice that the Prius has a timing chain instead of a belt (gen 3 is completely beltless).
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