Both the TDI and the Prius have enthusiasts who are often too biased. Well, even though I am more favorable to Diesel for both technical reasons and personal preferences, I would take a look at a hybrid if I were looking for something new since politics tend to favor the hybrids nowadays. In my country, the hybrid versions of the Corolla are now flexfuel, but the Prius doesn't have this feature even though it has the very same engine.
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