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I rented a new-shape Prius for a while while my Saab was getting body work. My thoughts on the Prius for you, then for the world..
On the highway, I drove between San Francisco, Santa Barbara, LA, around LA and back. It's a very comfortable car. It's not packed with the luxury you might be used to in the Saab yet it compensates in other ways. I really missed leather and especially heated seats, sunroof. I thought the dash board, even after two weeks seemed over complicated, but the car worked very well. The handling as stated by others is a little disconnected due to narrow tall tires, but fine. Safe, predictable. For your needs, no sweat. On long steep grades (LA's Grapvine) the car was completely at home. True that in the city, the engine recharges more, but on any commute with a few grades that require braking, you'll recharge the engine. California has that in spades, but someplace flat like Florida.. not so sure. But, for highway cruising, I got around 44-48 if I recall correctly. In hilly San Francisco, the mileage dropped to around 28 and couldn't really do better. The hills, while helpful in downhill recharging/braking, are death to fuel effeciency. The electric engine never gets to 'help' the gas engine, since there's so little flat driving here, meaning the gas engine cuts in almost instantly with any grade. In LA, around town, I couldn't do worse than about 42. Not amazing, but a lot better than any Corolla.
For space utilization, it's a brilliant car. SO big inside, you'll never miss a bigger car.
For driver amusement, it's a dazzler. What it lacks in handling and luxury it gains in tech.
I deeply considered owning one as a replacement for our utterly pathetic, badly built, junky MINI Cooper. What got me to change our plan was the medium mpg in SF, where I live, the high price since I really wanted nav and toys, and the odd cvt feeling. For you, it's a terrific choice. Toyota reliability would trump any vice, and certainly any diesel's reliability given the US choices for that option include the very worst rated vehicles available: Mercedes, VW and Jeep.
Best of luck deciding. If you go Prius, be sure to check if you're still in line to recieve the total tax credit (assuming you buy new). Credits are now offered based on sales-per-brand per quarter (or something like that) and since Toyota sells lots of hybrids, that compromises how tax incentives are availible. Just ask the dealer for a better explaination.
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