Friday, February 17, 2006

The 2006 Toyota Prius: Finally, My Bubble-Car has Arrived

I'm quite happy with the new Prius we just bought. Almost immediately, we took it on a road trip, and it performed quite well over hill and dale.

I read an article recently that took two rather unfair stances against the 2006 Toyota Prius.

As reported in The Week, Consumer Reports suggested that the mileage for the Prius was not as advertised. The 2006 Prius is rated at 50 Hwy, 60 in the City. No, I don't have those reversed: The Prius is designed to get better mileage in slower, stop-and-go traffic. It thrives on braking, and uses the electric motor when accelerating from a stoplight.

There isn't a single car on the road today that meets its own advertised MPG. They are often around 10 MPG less than advertised. I've been driving my car in the mostly highway, hilly, and partly slow-and-go traffic that is common for a Bay Area commuter (Santa Rosa to one of the two "nearby" airports). I get around 47 to 49 MPG, as measured by the computer and verified by me at each refill. So, it's supposed to get 55 combined, but it's getting only around 48. Golly, I should be upset! ;-)

Now for the other point:

There is a huge Federal tax credit available to those who buy a new Prius in 2006. Since the car is supposedly a failure at what it was intended to do, the accusation was made that this is yet another George W. Bush tax break for the wealthy.

Well, yeah! But at least this one is attainable by someone making under $200,000 per year!

I consider myself quite fortunate to be able to leverage this tax break in my favor. I'm expecting a credit of over $3k for the Prius. The credit is based on the fuel economy and emissions ratings of the car. We also looked at the Honda Civic hybrid, which is about $5k cheaper (for a very nice car with a sleek, sporty interior). The Civic's rebate is not as high as the Prius rebate.

The tax credit can only offset taxes paid in, or owed, so if you don't need to pay in the total amount in one year, you may not get the full benefit. For example, a college student who does not have a Federal tax obligation of $3k would not get extra money back, and some of the credit would be wasted. There are legal ways to get around this, of course. E.g., parents could buy the car for the student. Personal arrangements could then be made for the student to make the payments, minus $3k (it seems only fair, right Dad?).

Granted, it's not a break for the lower middle-class or the poor, but it is a nice incentive to get the upper middle-class to buy vehicles that don't suck as much gas. And perhaps that will encourages car-makers to build more hybrids instead of traditional gas-sucking cars. Why isn't there a hybrid Taurus, or a hybrid Sebring? What are other car manufacturers waiting for?

Perhaps the next incentive should be $3k towards college tuition for every high-MPG/low-emissions vehicle purchased by/for a full-time college student.

I am truly enjoying the Prius. It handles well enough, has enough power to get up the steep hills (yes, the engine whines a little, but I've reached a certain level of maturity where not every road is my personal race track). And over 45 MPG! For a geek like me, what's not to love?