Question

This trip covers approximately 1,500 miles. You plan to return the car with a full tank of gasoline. You are considering two options advertised by Hertz: Toyota Camry, 33 mpg highway, costs $465.59 plus taxes and fees totaling $553.28. Toyota Prius Hybrid, 48 mpg highway, costs $634.49 plus taxes and fees totaling $804.61. In both cases, you must purchase gasoline, which costs approximately $3.80 per gallon in California.

Answer 1

This answer assumes that the majority of the 1,500 miles are on the highway. After adding up the total cost for the trip for each car, the Toyota Camry is the better value. Toyota Camry: Base Price: $553.28 Gas Price: $172.72 Total Price: $726.01 Toyota Prius: Base Price: $804.61 Gas Price: $118,75 Total Price: $923.36 Therefore, based on the distance traveled on this trip, the Toyota Camry is the better value. A longer trip would likely turn the Prius into the better value but not for a 1,500 mile trip.