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When Toyota sells a hybrid for $29,000 -- standard Highlander plus $3000 hybrid premium -- I will trade in my present ride for one.
1)What is your average mpg?What sort of driving do you do?Thanks.Charlie
darmock,you are right of course.If we get a sudden spike to $4/gal,our economy will sink.Thanks.Charlie
If I assume an average of 22 mpg for the four and 27 mpg for the hybrid (real world) that is about 23% more fuel I am using. If a hybrid driver burns $1,000 worth of gas a year, I will burn $1,230. Interest on that $13,000 I saved will be at least $650 year. I still want a hybrid, but it doesn't make sense financially. I am a technology freak.
Please email me the dealership to me as well! Thanks. My email is in my profile.
I hope Toyota decided to pump up production.A "stripped " HH at $29,995 would be a lot more tempting than the $37000 they currently are.Thanks for the figures.Charlie PS I really liked the 4cyl High-my wife vetoed it because Phoebe and Isis"didn't look comfortable".
Unless I'm mistaken, the $2000 tax deduction is subtracted from your taxable income, not from the taxes that you owe (i.e., it's a tax deduction, not a tax credit). So, if you're in the 25% tax bracket, the $2000 deduction only saves you $500 in taxes. If your tax bracket is closer to 20%, it only saves you $400.
So, in short, the $3000 premium really is a $2500 premium, really. Of course, the money saved on gas helps make up for this, but the tax deduction doesn't help as much as most people think. Reporting that "this $x hybrid really costs only ($x - $2000)" isn't really accurate. I've seen some published reviews of hybrid vehicles report that the deduction "saves you $2000", which is misleading at best, IMHO.
If I'm wrong, please correct me (I'd love to be corrected and find out that I'm wrong). But this is how I understand the income tax deduction to work
If the car you are comparing it to costs just $8000 less-$30,000
And the car you are comparing it to is going to average 15 mpg vs 25 mpg(or about 10 mpg difference in the general mid teen to mid 20 mpg range)
And you pay ~$2.50/gal
Then you break even at 120,000 miles-Call the tax break a tie with the interest you won't make on the $8000.
All full sized SUVs will pay off at well under 120,000-even $27000 Expeditions and Tahoes.
Many midsized SUV's will pay off around 120,000-Trailblazer-Explorer-Pilot-MDX.-4 Runner
The Highlander V-6 and the 4 cyl Highlander and the CRV can take 180000 to 600,000 to pay off(never).
If gas hit $4/gal-break even is quicker.
Bottom line-it won't save many folks money-but it is likely to end up costing the same as many "lesser" slower vehicles.Gets Middle East off our backs a bit sooner.Charlie
Hybrid owners had better hope you are wrong about this statement, or the resale values are going into the toilet - the person buying that used Hybrid has to think about maintenance.
Toyota Ken
the 2nd thing that's bugging me is this claim that it will take 120,000 miles to recover the premium. this is true if after XX years, the hybrid and the "equivalent" gas model cost the same. in other words, a HH may cost $39k today, while a lmt gas will cost $33k. In 3 years, will they both cost $16k? We'll know the answer in 3 years, but I'm willing to bet the HH will still be worth more than a gas model (maybe 20k?). then the "premium" is only $2k- still doesn't make financial sense, but it's not the big financial burden some people are making it out to be.
Toyota Ken
About the tire pressure monitor: I checked my valve stems and they are rubber but a slightly large diameter than standard.
Has anybody else notice the handling to be a bit unstable during fast starts? I have not driven a front wheel drive car in a while, but it sometimes seems like the front wheels are lifting off the ground during quick starts. I don’t mean to imply I have been racing my new HH, but the front end seems to almost float. I do have the awd model, but from my understanding the majority of the power is delivered to the front wheels.
Toyota Ken
Sorry for the delay - not sure if you're reading this now, but thanks for your reply. Actually my parents have a place in the Adirondacks about 140 miles north of Albany (in Long Lake), which is probably not far at all from your dealer. But it turns out that Prestige Toyota in Northern NJ got me a Highlander Hybrid (Limited 4WD with Nav) today at MSRP. I got on their wait list at the end of April (#20 at the time) and was expecting to get the car some time in late July or August. But apparently this one became available when someone else backed out. Woo hoo! We're picking it up on Saturday morning.
I must say dealing with Mario Puentes, the internet manager from Prestige Toyota in Ramsey NJ has been a real pleasure unlike most of my other dealings with delaers via phone and e-mail. They are charging no premium above MSRP and are great about keeping you in the loop on availability and progress. Because of their strong sales record on Prius and Highlander, they're getting more of the HH than most other dealers in the area (9 in their first allocation alone).
Manhattan Toyota called me about 3 or 4 weeks after I filled out the enquiry form on Edmunds, but they told me I would have to wait a year if I wanted to pay MSRP. I'm sure Prestige's waiting list is still growing, but because thir volume is so high the wait will probably be less than at the other NYC-area dealers. And if you're flexible on color/options you can get someone else's car if they back out. Anyone in the NYC/NJ area considering the HH should give Mario a call - 201-258-2176 - tell him Chris Boylan sent you (no, I don't get a commission)...
Later,
-Chris
We want to add a trailer hitch to the car, but there is NO sign of any wiring harness. The owner's manual (page 334) says it should be there, and I confirmed it with Toyota's customer service people.
Short of removing things that we really don't want to touch, we looked around very thoroughly (even removed the spare tire) and there does not seem to be any sign of it. I'm wondering if it was left off accidentally when it was made.
If anyone else already has their Hybrid, have you looked under the rear of the car for the wiring harness? I'd appreciate it if you could take a look and let me know if you see it. Thanks!
Are you planning on putting the trailer hitch on yourself? My dealer did not seem interested in installing one and suggested I go to a Uhaul dealer. I don't like the idea of some kid drilling holes when 650 volts are close by.
I will take a closer look tonight and let you know if I find anything on mine.
On the Prius there have been at least two posters that paid $2100 & $2800 for a catalytic convertor. You can buy a cat convertor for a Camry for under $200. That is the kind of gouging those with hybrids are going to face very soon, if not already. Honda is doing the same. A 2003 Civic hybrid owner with a $7000 CVT transmission repair bill.
Just my thoughts.
Toyota Ken
Well, in my math, $7000 dollars (for a hybrid transmission) is $5000 dollars more than $2000. That is why it is different than a conventional car.
I understand your point about trends and mileage, but the question is how much do repairs cost when they are needed. By the above standards, the HSD would have to last three times as long to be worth the extra $$ for repair.
Mackabee
That was my feeling exactly. Toyota got around it some way or another. The problem as I see it is the special parts that are only used in hybrids will be over priced. The longer the warranty the better off you will be.
http://accounting.smartpros.com/x48749.xml
Two hours later, neighbor knocks on door to let us know our car lights are on? Weird as I went back and all doors were shut properly. The auto light feature on the headlights I don't think keep the lights on after the driver exist vehicle and closes door well?
Any theories on what happened? Happen to anyone else?
Steve
I know from research and personal experience that those factors don't apply broadly across the country. The HH is my wife and I's third Hybrid. We own a 2001 and a 2004 Prius (both bought without dealer markup). We saw the same dealer price gouging going on in several hot markets in the country while waiting for the '04 to arrive. I know from following the Prius forums that it wasn't hard to find a dealer that would sell at MSRP, even when people were selling used Prii for more than MSRP.
You fail to consider the tax advantages possible. Of course the Federal deduction of $2000 doesn't do much for most folks, but several states have tax incentives for buying a Hybrid vehicle. If you are a resident of Oregon, you get $1500 tax Credit. Colorado residents get a credit equal to 85% of the differential between the conventional and hybrid equivalent. If you sell your 10-year-old car to an out of state resident, or junk it, the credit is 100% of the difference.
The only state I found a $1000 cash back incentive is California (I didn't try all 50). In Chicago, Denver and Boston, $800 is available. In the Central Atlantic, it is $750. If you buy from a Dealer in Seattle or New Jersey, there's no cash back for you.
According to Edmonds, the spread between MSRP and Invoice on a 2005 Highlander is approximately $3000. You say you can get the conventional Highlander for $4000 under list from the right dealer. This would only be plausible in the regions that offer $1000 cash back on a Highlander and would probably require an afternoon's haggling. I know from personal experience that can buy a HH at true MSRP from the right dealer. Yes many dealers are taking advantage of a tight market, but plenty of dealers aren't throwing dealer options to create an inflated "MSRP".
The Highlander I bought, at the MSRP listed online, had no dealer options and the only port option was cargo/floor mats. They had two AWD Limited with Nav on the lot. The one that had been prepped had a supplimentary sticker where they had added $199 for paint sealant and $3000 Additional Dealer Markup. When I said I pay either, they didn't blink and asked me which color I preferred. It was so easy I feel I could have gotten them to go below MSRP if felt like really haggling.
Of course the real problem is that too many people (usually people that will never be hybrid buyers) focus entirely on fuel economy improvements that hybrids provide and make a big deal that the ROI from fuel savings doesn't cover the premium for the Hybrid. Except for people who can get a state tax break, this is almost invariably true. What they fail to consider are the other factors that add value to a hybrid vehicle, such as benefit the the environment, advanced electronic systems (Especially in the case of the Prius, which has more Lexus in it than Toyota when it comes to the electronics), higher performance (Highlander, RX400h, Accord), etc.
One point that most people don't understand that Toyota's prime hybrid design objective is to minimize exhaust emissions. Fuel economy and/or higher performance simple come along for the ride.
Walt
Hope this helps, and if not, a bit of clarifiaction would help.
Toyota Ken
Ok.Lets have some more MPG numbers?!Charlie
I don't think I am in-New Orleans-a hot Hybrid market.MPG, green ness, and safety aren't really big selling points around here.I confused the issue by mentioning Carson toyota-a big online discounter that does a lot of out of state sales.They even have a Prius on special now(no price unfortunately-bad sign).
Well,gotta agree.The overall green ness,very handy size-long trip comfortable,but city "parkable",near lux level of options available,acceleration and "funness" are all more important than the couple of $$ difference in "eventually cost" of owning.Heck,it is a $40,000 car-$2000 is a drop in the bucket.Thanks.Charlie
PS I didn't think I was biased against the HH??120,000 miles is a plausible length of time to keep it.Granted,I wouldn't dispute the 80,000-90,000 miles figure I saw here.All my figures were guess-estimates ($30,000 vs $38000;$2.50 gal;15mpg vs 25mpg).I ignore resale trade in(HH++ is my guess).I ignored fed-state tax break(HH++).Interest not earned(HH-) I think the factor that is going to end up being the "worst guess" is the price of gasoline.It is more than $2.50/gal in some places already!!In 5 years it might be $4/gal+ and that will make for a sweet trade in resale to say nothing of directly dropping the break even miles.
The HH is a good bet to PAY OFF based just on MPG(another guess,but 7 years ago I paid 89 cents/gal))!!Now I will shut up about break even.
The Rx400 has different alignment settings from the Rx330 and some seem to have been set up to the wrong settings. Perhaps the same confusion applies to the Highlander and HH.
I've been through the hybrid break even from gas savings argument through two generations of the Prius and now the Highlander (not so much with the 2001 Prius) which has made me rather sensitive on the subject, since if all you are interested in is saving $$$ you don't want a hybrid. It was really the $8,000 figure (which I've seen bandied about by others online) that pushed me over the edge, since my personal research didn't come close support it. Sorry if I went overboard.
I only meant that your figures seemed biased against the HH, except for what used to seem to be expensive gas. You pointed out some valid factors that I had failed to take into account as well. One thing I've learned is that it is too much work to try and figure out the real difference in price between the conventional and Hybrid Highlander when Toyota offers a $750 rebate in Dover, DE and no rebate in Newark, DE on a conventional Highlander.
Glad we've worked it out.
Walt
Thanks.Charlie
My understanding is that with all Highlanders, the converter is required for trailer wiring and I believe Toyota is the only source. The dealer parts department should be able to tell you what is needed. Hope this helps.
Also, my dealer quoted a $450.00 price for the hitch + installation.
Comparable ?
The converter (# 08921-48860) can be had online for about $60. It will take you about 10-minutes to figure out how to remove the black plastic tray behind the wheel well then plugging the harness in will be easy. You can get a ball and ball mount from Toyota (mine came with it) or you can get it at Walmart for about $22 which is what I would have done if necessary.
I would have taken this route if the dealer wanted to charge me too much.
Hope this helps.
Thanks :confuse:
If I'm wrong about the Limited gasoline Highlanders,set me straight!Charlie
http://home.earthlink.net/~graham1/MyToyotaPrius/Understanding/ContinuouslyVariableTransmi- ssion.htm
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http://www.toyota.com/vehicles/minisite/hhybrid/hsd.html
My HH should be here by Thursday or Friday. Are there any other Maintenance tips I should know about that apply specifically to Hybrids as opposed to regular cars??
Thanks
It's black with a tan leather interior and has all the options except for the navigation system which I couldn't see paying $2000 for. I'll just pick up one of those portable nav systems later.
Now comes the hard part...I have to wait 3-6 weeks for it.
I'm just kidding- good luck on your wait!
http://home.earthlink.net/~graham1/MyToyotaPrius/Understanding/
and then click on "continuously variable transmission" It is pretty interesting.">link title
Great Info.
I think I will search out the items you have so conveniently defined...
I would just appreciate one more item...perhaps`a link to the web site where you found these items ? Performance auto ?? :confuse:
Thx !