We finally turned in the gas engine VW and switched to the hybrid: a 2007 Toyota Prius. We went with the Prius because of the amount of room in the back (we're a family of four), the quality of the car, the warranty, and the mileage.
First the mileage. In our family we always drive very conservatively; no fast starts or hard braking. Our normal experience is impatient drivers passing us quickly as we drive at the speed limit (gasp: or less!) and don't rush up to the next stoplight. This of course hasn't changed since we bought the Prius. What has changed is that we average 51 miles per gallon in highly congested Northern Virginia--and it's cold and we have not yet gotten familiar with how to really conserve gas with the hybrid engine. I believe we'll be able to exceed 60 within a few weeks.
On quality, the car is top-notch. Lots of room, everything works exceptionally well, the car drives smoothly. The warranty on the car is pretty average, but on the hybrid system is excellent: 100,000 miles 6 years. Obviously it's designed to overcome any consumer hesitation on "new technology" or battery life.
If you're thinking about what your next car should be, and maybe it can be a Prius, at least do yourself the favor of taking a test drive. If for no other reason than to consider devoting less of your paycheck to the oil companies!
Dan D.'s keywords: car hybrid mpg automotive