Cut motoring costs with a Toyota Prius hybrid car

By MoneyhighStreet Staff. Published on September 24, 2007 This post currently has no comments.

Toyota

With oil prices rocketing to record highs in recent weeks and the price at the pump on the up, motoring is now more expensive than ever before. Many people are turning to hybrid cars in a bid to save money and to reduce their carbon footprint. We look at how the Toyota Prius hybrid car could save you money.

The Toyota Prius was one of the first hybrid cars to hit the British market and has proved increasingly popular among motorists. While many of the first buyers were drawn to the Prius because it is environmentally friendly, the financial advantages of owning one of these cars are becoming increasing factor in the rising sales of this, and other hybrid cars.

Hybrid technology works by using an electric engine as well as a conventional petrol engine. When the car is running at low speeds, it switches to electric mode, thus saving fuel and cutting emissions significantly.

Given the recent spike in oil prices, the Prius' low fuel consumption is a major advantage. With a mix of city and motorway driving, the Prius easily achieves 60 mpg, while 70 mpg isn't out of the question if you go easy on the throttle. Compared with similar conventional cars this could half your fuel bills each year, a significant saving. And performance isn't bad either with 143bhp beneath the bonnet.

While many remain dubious about this new technology, the Prius has held its own compared to conventional cars of a similar size. In fact, it won the Car of the Year Award in 2005 and fared very well NCAP safety tests.

In addition, the Prius is relatively cheap to insure. It starts in insurance group 7 and rises to group 8 for more powerful models. It is rated as relatively cheap to repair by insurance companies, which helps to keep insurance costs down.

As well as cheap insurance, Prius owners can also enjoy lower Vehicle Excise Duty. All cars registered since March 1, 2001 have been rated under Graduated Vehicle Excise Duty where tax is based on carbon dioxide emissions rather than engine size. With emissions of 104.00 g/km, the Prius boasts emissions that are far lower than most cars and lower than most hybrids. This qualifies the Prius for the lowest cost excise rating at £35 per year and should save you at least £100 every year.

If you commute to London on a regular basis, owning a Toyota Prius could save you a significant amount of money. The Prius is exempt from the £8-a-day London Congestion Charge, which could save you up to £2,000 every year. To qualify, you simply have to register your car with Transport of London.

In addition, the Toyota Prius is proving to have a good resale value on the second hand market so you should get a good price when you sell on.

However, there are some drawbacks with the Prius and other hybrid cars. While you may save money on tax, insurance and running costs, the Prius is expensive compared to conventional cars in its class. The £17,777 to £20,677 price tag may put many people off.

If you convert to hybrid, you can also expect to sacrifice some performance. They do not have the acceleration and overtaking power of conventional cars. Also bear in mind that this is still new technology that probably hasn't yet reached its full potential, and there may still be some teething problems.

Although the Prius was the first affordable hybrid car to hit the UK market, there is now much more choice with Honda, Volvo, Rover and Vauxhall offering hybrid models.

If you use your car infrequently and do not have high mileage, then a hybrid is probably not the right choice for you. But if you clock up high mileage each year, especially in the London area, you could cut your motoring costs significantly.

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