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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: geode00 who wrote (187280)	5/25/2006 1:41:54 AM
From: Nadine Carroll	Read Replies (3) \| Respond to of 281500

The Prius sells for a premium simply because of high demand and low supply. If the hybrid is popular then this condition will go away and there will no longer be a premium on the car. If the Prius stops costing $9,000 more than a Corolla, that will obviously change the equation. Or if you drive 50,000 miles a year instead of 10,000 miles a year, you obviously have different concerns about fuel usage than the average driver. But for the average driver, paying $9,000 more NOW in order to hopefully recover it in 5 years (actually, you need to recover more than the amount to break even; you have to account for the opportunity cost of what you could have done with that $9,000) makes no economic sense whatsoever. Unless you tell me that the average Prius owner is really expecting the price of gas to go up $10/gallon in the near future. I prefer to chalk it up to "green piety."