Highlander Hybrid Isn't Selling So Well

I received an E-Mail from Toyota today.  They are offering 3.9% financing or special lease rates on the Highlander Hybrid.  That's surprising considering the $2600 (2WD) or $2200 (4WD) tax credits (not deductions) and how new a model it is.

Although from looking at Highlander prices, gas needs to be $4 a gallon before the $7000 increase in price over the non-hybrid model makes sense.  A loaded 4WD Hybrid with Nav has a $43,600 MSRP.

Personally, I'd rather have a wagon than a SUV anyway.  A similarly equipped 2006 BMW 325xi Wagon is $400 less and a lot more fun to drive.  And there aren't any batteries to replace in 6 years.

Comments

[2yellowdogs]

I test-drove one. It's OK at best. My problem is with the Highlander, per se. Nothing much to recommend it and at about $34,000 loaded, it's overpriced even with the standard engine.

Bought a very nice Honda Pilot LX-I for $2,500 less instead and haven't looked back.

[I cry foul]

I think $7K diff in price is exagerated.

http://www.hybridcars.com/highlander.html

Compared to the Conventional Highlander - Approx. $5,000 more for the Highlander Hybrid
Depending on your selection of a two-door or four-door Highlander, and your selection of the base model or the limited edition, you are likely to spend somewhere between $3,000 and $5,000 more for the hybrid version.

Base 2wd - $33,030
Base 4wd - $34,430
Limited 2wd - $37,890
Limited 4wd - $39,290
If you want to get to an exact price difference, it’s important to compare apples-to-apples. Considering how Toyota packages different add-on features and options, the comparison is not always obvious, and the hybrid premium is frequently exaggerated in auto reviews.