Toyota Announces 2010 Prius Pricing

It's finally official. No more rumors or price conversions from Japan. The new 2010 Toyota Prius will start at $21,000, not including delivery, processing and handling fees, which will be $750 in most areas (our full review is here).

The price for the new base-model Prius is $1,000 less than the price of the outgoing model. It is thought that Toyota was facing pressure to lower its price because of the currently low demand for hybrid cars and competition from Honda. Last month, Honda set the price of its new 2010 Insight hybrid at $19,800 (not including destination charges).

But buyers won't be able to pick up the least expensive Prius right away. Toyota said in a news release that the $21,000 base-model Prius will be available later this year. When the car goes on sale in late May, the lowest-priced model will cost $22,000.

The most expensive model (called Prius V in the news release), will cost $27,270 and come fully loaded. Navigation will be available on the top three price packages and cost an additional $1,800. And the much-talked-about Solar Roof Package, which includes the navigation package, will be a $3,600 option. Available on only the Prius III and Prius IV models, the solar roof powers a ventilation system that circulates air through the cabin to keep the car cool while it is parked on hot days.

The new Prius made headlines last month when Toyota announced that it will get an E.P.A. estimate of 50 miles per gallon in combined highway and city driving.