Nords said:
Auto technology is always changing, sometimes for the better, and there's nothing wrong with the cars made between 2001-2006. You can buy used for a lot cheaper and let everyone else test out the latest technology for you. A few years later when they're done playing with it you can buy it at half-price (or less).
We're very happy to see the latest tech on the road because we know that it means the current tech will soon be on sale for greatly reduced prices.
We're seeing 2006/7 Priuses on the road now, and we're seeing 2004 Priuses every week on Craigslist for about $12K-$15K... plenty of tech to play with.
Interesting info on the Prius from wikipedia:
http://en.wikipedia.org/wiki/Toyota_Prius
With a smaller and lower voltage NiMH battery and a boost converter to step the voltage up to 500 V, the
2004 model was more powerful (2 seconds faster in 0 to 96 km/h acceleration) and is 15% more fuel efficient than the previous generation Prius, with 60 miles per US gallon (4.3 L/100 km) city and 51 miles per US gallon (4.7 L/100 km) highway (according to the EPA). When driven appropriately, commuting and mixed suburban drivers are reporting fuel consumption of 45 to 50 miles per US gallon (5.2 to 4.7 L/100 km).
The 2006 Prius introduced some minor cosmetic changes, along with optional features such as advanced airbags, a rear-view camera, an upgraded audio system (including a line-in port), an updated Navigation DVD with new user interface, and a higher-resolution LCD display.
The 2007 Prius carries over the newer features from 2006 (also slightly higher price), while making the advanced and side-curtain airbags standard on all models. Also available is a Touring Edition that includes an elongated larger rear spoiler as well as larger, sharper-pointed 7-spoke 16" alloy wheels with plastic hub cab cover to protect it from scratches when parking against the curb. In addition, the Touring Edition also comes with a firmer European tuned suspension, standard high-intensity-discharge (HID) headlights and integrated (non-HID) fog lights.
The Prius is scheduled for a redesign for the 2009 model with a significant number of upgrades. It has been mentioned that the new Prius will receive an upgrade in petrol engine from 1.5 liters to 1.8 liters. It will also receive new smaller and more powerful lithium ion batteries which should give the new Prius more cabin space. The upgraded specifications of the vehicle will give it vastly improved mileage rumored to be between 80-113 MPG as well as improved acceleration giving it a sprint time of less than 10 seconds in 0-62 MPH. The body is also redesigned to give a more sleek sport look.
All in all, it sounds like buying a 2004 Prius is the right thing to do until the redesign in 2009.