The Honda Insight, a vehicle that claimed to undercut the Prius in price while offering comparable performance in an almost as efficient package is not selling well in the U.S. Recent reports show that sales of the Insight are incredibly low. Prior to the launch of the new Prius, Toyota lowered the price to better compete with the Honda offering. Now that Honda's Insight is struggling Toyota has coincidentally chosen to raise the price on the Prius.
The new increase in price will go into affect on January 24th. The Prius will see a $400 price increase across all trim lines. Walking off the lot with the cheapest available Prius, the Prius II will set you back $22,800 while a loaded Prius V will be tagged at $28,070.
Where's the Prius I base model? Toyota has still not offered the base model Prius I here in the states. This model is expected to start at $21,000. However, the company has released very little information about a possible release date of the cheapest Prius. Perhaps it will never makes it to market here as the vehicles lower priced competition has struggled to gain any market share.
The Toyota Prius still appears to be a solid bargain for its modest price tag. A family sized vehicle, capable of carrying five in a pinch, while returning 50 mpg doing so and doing it for as little as $23,000 is still a deal to us.
Source: Toyota Press Release Pricing Announcement