Toyota Offers Incentives to Move Priuses

DARNESTOWN, MD (Dow Jones) -- Three things happened recently to demonstrate that perhaps Hades has frozen over. Well, two anyway.

First, our little farm was hit by a huge ice storm and wind chill factors that were well below those in our freezer. Second, it was widely announced that Toyota is now offering incentives on the Prius. At one time you got on a waiting list for a Prius -- even if your favorite uncle sold them, owned the garage, and never claimed to have fathered Anna Nicole Smith's child. And third: Brittany went bald -- which allows us to get all the nutty things into one neat little paragraph.

Toyota sales people used to try hard to stifle a laugh if you walked in expecting to buy a Prius off the lot, if indeed they had any. Waiting lists of two to three months were in vogue, and some customers had to ante up more than the sticker price.

But now, Toyota is embarking on its first big ad campaign for the Prius, and offering incentives to prospective buyers. That includes 0% financing for a rare few for two years, and 2.9% financing for three years.

What happened? The price of gas fell to around the two-dollar mark from three; many people who wanted a Prius have acquired one (not unusual in the life cycle of a car); and Toyota upped the production of the much-talked-about hybrid. So supply caught up with -- and in some cases exceeded -- demand, and to some degree put the consumer back in the driver's seat.

What hasn't changed is the fact that the Prius is one neat little gas sipping car. It's solid, starts quickly even in minus-9 degree wind chills, warms up quickly, and doesn't emit the slightest squeak even in the coldest weather. It also carries the Toyota promise of a long and trouble free life at a reasonable price point.

It's great for zipping around town (where it gets the best gas mileage), and is easy to park. It holds its own on the interstates, where it cruises happily at 65 to 70 (where legal, of course) with well suppressed wind and road noise. The Prius does react a bit to side winds.

The Prius is powered by a 1.5-liter four that is assisted by a battery- powered electric motor for 110-horsepower. It has one of the best continuously variable transmissions we have tested.

The seats are long-trip comfortable, and the controls (with one exception) are frustration free.

One major gripe was the tiny shift level that sprouts from the dash and operates in a unique pattern. We feel there is nothing wrong with the traditional P, R, N, D, L, and it should have been adopted here. A second maddening gripe was the beeper that went off when one shifted into reverse. Granted, the Prius is virtually silent when operating solely in the electric mode and anyone behind the car should be warned that a reverse move is in the works. But something better than the incessant beeping could have been adopted -- perhaps the Preservation Hall Jazz Band playing "When the Saints Go Marching In."

Beyond those two items, the Prius is a winner. Just be advised that everything it does is designed to extract the maximum amount of miles per gallon. However, you will not get the much-talked-about 51 to 60 miles per gallon that the EPA rates the car. With little driving in heavy traffic and mostly on uncrowded rural roads and interstates, the Prius gave us 38.7 miles per gallon.

With its low emissions, good build quality, and favorable gas mileage, (raise your hand if you don't think prices will go up again), the little Prius is a top-notch car, with good room for four and a fair amount of their stuff.

Our test car sold for $25,598, including extensive option package 3 (audio and electronic gadgets mostly), and $620 for delivery.

Those who like to drive more "energetically" might be drawn to other gas sippers, such as the Honda Fit and the Mazda 3 series. But that doesn't change the fact that the Prius didn't need a tattoo or a bald head to be a nice set of wheels.

Comments?ramadon@marketwatch.com.

(END) Dow Jones Newswires

02-25-07 2152ET

Copyright (c) 2007 Dow Jones & Company, Inc.

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