To understand what is more expensive you need to look at the NPV of both the suggestions you have given.
Suggestion 1) Considering that when buying a car… a modest $4k leaves the country.
And then each year on an average $9k leaves due to gasoline prices.
Taking a modeast 5% rate of return and calculating it for 10 years gives us an
NPV=($73495.61)<—-money goes abroad

Suggestion 2) Considering $20k leaves abroad and then $4.5k leaves due to gas.
taking the same variables. rate=5% and 10 yr lifetime.
NPV=($64747.8)<—–money goes abroad

So prius hybrid is a pure win….
Also the US. govt wont have to dependent on the gulf countries and would also be safe from any volatilities in gas prices.
In the future if other substitutes for gas are not found then US will be shielded by the policy undertaken now.

regards
karan

I also have two related pet peeves.

1. A car that gets 25 mpg, burns 4,000 gallons of fuel in 100K miles. At today’s prices that’s about $16K. Probably 50-60% of that goes overseas and leaves the country–$8-10K.

A person who buys a Japanese built Prius for $30K, probably sends $20K overseas plus another $4-5K for fuel.

So a Prius sends money overseas faster than a U.S. built midsize car.

2. And the U.S. has used millions of tax dollars to encourage hybrids sales to further increase the flow of dollars outside the US since Honda and Toyota sell the most hybrids. And both Presidential candidates are talking increasing the subsidy to hyrid cars. (And why is there a subsity for vehicles which have about a 6 month waiting list?)

If there is a subsidy, it should only be for U.S. built cars. This exclusion should also be for U.S. cars built in Canada and Mexico.