Free Prius

[RussellMania]

http://blog.rmi.org/blog_how_our_prius_paid_for_itself_and_put_10000_back_in_our_pocket

The author describes how switching from owning two Corollas to a single Prius (and driving a lot less) allowed him to recoup the entire cost of the Prius, and then some. I would have to call this semi-mustachian, since he bought a new Prius, rather than a used one, but it's a good look at some of the financial costs of car use.

[arebelspy]

The Prius wasn't free.  It cost him about 24k sticker price (according to him).

Just because it saved him from wasting money like he was doesn't make it free.

To illustrate my point, let's look at an example.  Let's say I take up smoking, then quit.  And I go "I saved $5/day in packs of smokes!  After a year, that's about $2,000, or 4 free iPads - quitting smoking got me 4 free iPads!"

..no.

Quitting smoking got me money back that I was wasting.  But it didn't make the item I bought with that money free.

He was wasting money having two vehicles.  By switching to one, he saved a bunch of money.  The fact that he replowed that money into a Prius doesn't make the Prius itself free, just like by plowing smoking money into iPads it doesn't make the iPads free.

Almost all his savings had to do with switching to one car (less miles driven, less insurance paid, less car payments, etc.).  Overall, I agree with you though, that it is an interesting look at the financial costs of car use.  The author's conclusion of a "free" car, however, is just ridiculous sensationalism to catch eyeballs.

[RussellMania]

Arebelspy, you are right, and I fell for it. The $24k simply covered the purchase price, and he only pocketed $10k. He could have saved even more if he had purchased a used car. Even if an alternative car got worse gas mileage, this was only 1/10th of his estimated savings, so it would be easy to cancel this out with a cheaper car.

The real benefit he saw was simply from being forced to drive less since he had less access to a car, as well as avoiding waste on peripheral expenses, both of which would have been taken care of by dropping to a single car, no matter which car it was.

[BenDarDunDat]

I don't know about this guy's math, according to mine, he would have put $24K in his pocket by keeping a Corolla. 

                                    Corolla   Prius
Cost after trade/sale   $5,000    ($14,000)
Maintenance               -3000   -1500
Insurance                           -2400   -9200
Sales Tax                                 0   -1220
Gas                                    -7894   -6666
Total Expense                    ($8,294)   ($32,586)

[HumanAfterAll]

BenDarDunDat - Great analysis! 

Total cost of ownership over [10] years is the way to look at it.  Scenario A, keep what you have.  Scenario B, C, D, trade for something else.  Scenario E, move your job or your home so you don't drive so much!

I would also include resale value and maintenance estimates for each option as well.

[BenDarDunDat]

Right El Beardo.  If it weren't for the increased costs in insurance and sale tax the new car option really isn't bad in comparison to a used... in a car with a low rate of depreciation .