Economics of Buying a Used Hybrid

[born2pdl]

Let's say a guy wants to buy a comfortable, reliable used car with great mpg and reasonable cost. Maybe a used hybrid. Would something like a ~2005 prius work? I've heard that batteries in 04-05 prius' are near/at the end of their useful life. 04-05 Prius' sell for about $10k around here, but paying for a replacement battery doesn't sound fun or smart. You can buy a huge amount of gas for $3k instead of a battery.

Would I be better off with a 07-08 corolla for the same price? Or maybe an 05 elantra for ~$5k? The $5k left over would pay the mpg differential for about 1 million miles.

If it's strictly about the economics, then what's the verdict on the value of used hybrids?

[Daox]

You're going to have to run the numbers yourself. Keep in mind all the factors though.

purchase price
gas price
maintenance
insurance

Here is a cost analysis of a few new hybrids to a few new normal cars. He doesn't take into consideration maintenance and insurance though:
Comparing hybrids to non-hybrids

[RobertSmalls]

Hybrid ReInvolt sells refurb Prius batteries for $1500, and you could probably do it yourself for the price of two junkyard batteries. Refurb Honda batteries are slightly cheaper.

Whether a used hybrid is the cheapest car to buy and own depends on the asking price and the reliability of that particular car.

Remember there are also non-financial benefits to hybrid ownership, and those will probably be factored into the price.

[Phantom]

Look into a Jetta or golf TDI.

[born2pdl]

A VW tdi makes sense for that price range. Example, a local 2004 jetta wagon tdi with 70k miles is advertised for $11.5k. Most tdi's here have 100~200k miles. Then hope diesel fuel prices don't go crazy.

For me, maybe a 05~06 Elantra GT 5speed. They go for $5~7k, are loaded with leather, good reliability, 35mpg hwy and I can use EOC and pulse and glide to try for more. If my purchase price is $4k less, that pays for about 110 tanks of gas.

And ride my bike.

[SoobieOut]

I bought a 2006 Honda Civic Hybrid. Very low miles 23K and just enough scratches and dents to drop the price. Owned by a retired Navy man.

It's been a great car so far. I see it as the best of both worlds. I don't worry about scratches and get great MPG.

[bwilson4web]

Hi,

Originally Posted by born2pdl

Let's say a guy wants to buy a comfortable, reliable used car with great mpg and reasonable cost. Maybe a used hybrid.

That was our approach:

• October 2005 - bought a used, 2003 Prius, NHW11, with 49,000 miles in Fort Worth TX, 810 miles from Huntsville, AL. I flew out and drove it back. I had ordered the two volume, shop maintenance manual and electrical diagrams before flying out. This is my commuting car and it now has 132,000 miles on the odometer.
• May 2009 - bought a new, 2010 Prius, ZVW30, and picked it up in Decatur AL. It now has 14,000 miles on the odometer.

We still have both cars.

Originally Posted by born2pdl

. . .
Would something like a ~2005 prius work?

First it is a question of how comfortable you feel about doing your own maintenance versus paying the dealer. In a few parts of the country there are independent shops that handle Prius and this article gives a clue:
Preferred Independent Hybrid Car Repair and Service Shops | Hybrid Cars

My preference for a used car is after the 3/36000 mile warranty but before the 6/60000 and 8/100000 mile warranties are over. The 8/100000 warranty covers the traction battery and inverter. Check the Toyota web site to read up on the warranty details.

I forgot to mention rebuilt, salvage cars:

• Plug In Hybrid Electric Vehicle PHEV - Scottsburg, IN
• Remanufactured Hybrid Vehicle Battery Packs - Summit, NC

Unlike a stock, Prius, these folks can put in a plug-in kit and other enhancements that make the NHW20 in something you still can't buy from Toyota, even new!

Originally Posted by born2pdl

. . . I've heard that batteries in 04-05 prius' are near/at the end of their useful life.

The 2004-09 Prius is the model NHW20. There have been so few traction battery failures in these cars that no one really knows the expected life. Even the NHW11, the earlier car with an older style traction battery, doesn't really have a finite life as much as it is a function of 'heat' and this is often a result of driving style and terrain. Hot climates, parked in the sun, with a lot of hills, and high speeds over 70-75 mph are to be avoided.

We are finding there are enough crashed, NHW20 Prius that there are plenty of salvage traction batteries to handle even NHW11 traction battery rebuilding with the newer modules. It may seem strange until you realize that only 54,000 NHW11s were sold and about 600,000 NHW20s. Both cars are leaving the fleet at a little less than 3% per year so there are roughly 10 times as many NHW20s showing up in salvage yards as the older, NHW11. Traction batteries from crashed NHW20s are the best source to rebuild a failed, NHW11 traction battery.

Originally Posted by born2pdl

. . . 04-05 Prius' sell for about $10k around here, but paying for a replacement battery doesn't sound fun or smart. You can buy a huge amount of gas for $3k instead of a battery.

Or not.

Originally Posted by born2pdl

. . . Would I be better off with a 07-08 corolla for the same price? Or maybe an 05 elantra for ~$5k? The $5k left over would pay the mpg differential for about 1 million miles.

In my case, I drive about 20,000 miles per year. The first year of owning our 2003 Prius including replacing the tires came in at just $50 over the cost of a Scion xB. Every year thereafter has been on the positive side by several hundred dollars. This also includes an insurance savings from Travellers.

Originally Posted by born2pdl

. . . If it's strictly about the economics, then what's the verdict on the value of used hybrids?

If you set the alternatives, you can make a business case either way. In my case, it was a used, two year old Prius versus a new Scion xB. I've never looked back and have no complaints. But then I'm a curious guy who enjoys working on new technology so the Prius fit the bill. If you don't enjoy working on your own car and have no interest in the technology, go with a gasser and have a happy life.

Bob Wilson

ps. Wow! 9/7/2010 . . . guess we were all a little late offering advice. <grins>