Published on June 9, 2008

Buying a Car?

With the cost of the gas going higher and higher every day many car owners think about replacing an older car with a more efficient, higher mileage one.
While from the point of an environmentalist buying a more gas efficient car might be a no brainer, from a money perspective things are not as straightforward, even ignoring the energy that goes into the manufacturing the new car.

From the multiple choices available, and for the sake of the argument, let's assume that you own a Toyota Camry LE V6 and want to replace it with a brand new Toyota Prius.

We need to look at the total cost of ownership for both vehicles for the next five years. You could choose a different term, but need to research the costs associated with it.

There are many sites on the Internet that provide the total cost of ownership for different car makes and models. The data used in this article is based on data available on edmunds.com and Kelley Blue Book (kbb.com).

Toyota Camry LE V6 cost of ownership. Source: edmunds.com

Toyota Prius cost of ownership. Source: edmunds.com

What the two tables tell us is that for the next five years, assuming 15,000 miles driven each year, the Camry cost of ownership will be $$35,119. The ownership cost for the Prius is higher, meaning that even though the fuel efficiency is almost twice compared to the Camry, overall you will spend more to own it.

However, if you think that saving the environment is priceless, go for the Prius!