This blog brings up some good points, but I also think it is a little misguided. If someone wants the cheapest car (a car that is under $30,000 for entire cost of ownership for 5 years) the best idea would be to get a pre-owned car. You get an incredible savings off brand new, in addition to extended warranties on certified models. Cost is not the only factor when buying a car. Comfort, safety, style and performance all play a major factor in poeple’s buying decisions. If you can get a much more “loaded” car at the same price if you opt for a slightly pre-owned. If payments are the main concern do yourself a favor and consider leasing. With all the changes in full disclosure regulation, leasing is a very good option. You can often get a higher trim level for very little more per month.
Hybrids are not a “cheap” car to make either. However, they do retain a higher resale value. So if you were to trade in the Corolla and the Prius you could be looking at a similar amount of equity in the car, especially if gas prices continue too rise. The best idea is to really dicuss your options with a sales consultant. We are here to help you make an informed decision. I have talked people both out of and into a Hybrid, depending on what was the more appropriate solution for their needs.