We spend a week in the all new and much more entertaining-to-drive 2017 Toyota Prius.

2016 Toyota Prius Three front 3/4 view

Pros

Impressive fuel economy
Versatility
Improved handling and performance

Cons

Polarizing styling
Rear visibility
Highway road noise

2016 Toyota Prius Three front fascia

2016 Toyota Prius

Toyota's landmark hybrid sedan is all-new for 2016 with totally new architecture, a new independent rear suspension, better ride and handling dynamics and a polarizing design that you either love or hate.

2016 Toyota Prius Three rear 3/4 view

Exterior

Although outside it retains the same basic Kammback shape as the second generation model introduced 12 years ago, not a single body panel is carried over. The latest design looks most familiar from the sides, while it looks the best in back. Up front, however, it's another story as sharp angles mix it up with curved surfaces as both attempt to draw your attention away from the out of place central oval surrounding the blue-tinged Toyota badge.

We partly blame the Magnetic Gray paint job that looks far too staid on a shape like this. In addition, lower trims like our Prius 3 tester lack the boomerang-shaped lower LED fog lights that help balance the narrow "T"-shaped upper headlight enclosures (that hold new Bi-LED headlamps).

2016 Toyota Prius Three dashboard

Interior

While the stylists went a bit over-the-top with the new Prius's exterior, its interior is, if anything, more conservative. The outgoing model's high, floating center console has been eighty-sixed in favor of a more conventional setup, albeit it one trimmed in high-gloss white plastic – a material also used to adorn the steering wheel and lower center stack. Meanwhile, the upper center stack surround and lower dashboard are trimmed in gloss piano black.

But there is also good news here. The materials and fit and finish remain first class, while most of the panels and trim bits consist of soft touch materials – representing a big step up from the outgoing model. The more conventional center console also makes the cockpit look and feel roomier.

2016 Toyota Prius Three front seats

The fluorescent gauges are easy to read and the central touchscreen comes with redundant buttons for power/volume and tune/scroll functions, although the rest of the audio functions reside on the screen. On the plus side, trim levels above the Prius Two feature Toyota's intuitive Entune App Suite infotainment system, making navigating through the various functions very user friendly.

Hyper-miler nerds should remain happy as the upper screen continues to offer ten ways from Sunday to measure how efficiently one can travel from point A to point B. Although capacitive-touch, the buttons on the HVAC system are also straightforward (a Smart-flow mode now focuses airflow only to areas where occupants are seated to maximize comfort and fuel economy).

2016 Toyota Prius Three back seats

The steering wheel both tilts and telescopes, the front seats are nicely bolstered, very supportive and they afford plenty of room for even tall adults. Interestingly, for our money, the cloth seats in the Prius Three are more comfortable than the imitation leather ones found in either the Prius Four or Prius Five.

In back, there's plenty of leg, hip, shoulder and head room for up to three more adults. In all but the base model, a smaller lithium-ion battery pack replaces the nickel-metal hydride battery, allowing it to be moved from beneath the luggage area to under the rear seat, resulting in 3 cubic feet of additional cargo space. Fold the 60/40 split rear seats down and you have a total of 66 cubic feet of storage – more than enough to carry at least one 52cm road bike without having to remove the front wheel.

2016 Toyota Prius Three cargo area with the rear seats folded

Views out the front, sides and rear three quarters are even better, aided by a lower cowl and a new A-pillar position. The view out the rear three-quarters is also better thanks to larger rear door glass and bigger fixed rear quarter windows. Alas, the view out back remains challenging – hindered by the wind-cheating sloped roofline and Kammback-terminating spoiler that splits the rear window. Fortunately, the Prius in all trim levels comes standard with a rear view camera display that aids in backing up and parking.

2016 Toyota Prius Three hybrid drive system

Under the hood

Changes are also afoot, as you might expect, under the hood. Toyota's 2ZR-FXE Atkinson cycle 1.8-liter 4-cylinder engine remains, now generating 95 horsepower (down 3) and 105 lb.-ft. of torque. The system's new electric motor generates 71 horsepower (down by 9) resulting in a total net horsepower of 121 (down by 13) that's delivered to the front wheels via a CVT automatic.

Once again, fuel economy in the Prius is excellent. The EPA now rates it at 54/50/52 (up from 51/48/50 last year) city/highway/combined mpg, while our own observed fuel economy in around town driving was a very surprising average of 66.3 miles per gallon (do I hear a "Boo-Rah!" from tree huggers out there?).

2016 Toyota Prius Three joystick shifter

On the road

Ah yes, on the road. Here's where things get real interesting with the fourth generation Prius, because this one is actually fun to drive. You heard that right, driving a new Prius no longer requires donning the motoring equivalent of a hair shirt.

While the new model comes with slightly less horsepower and torque, it's also 22 pounds lighter than the outgoing model. More importantly, the old model's torsion beam suspension has been shelved in favor of a fully-independent double wishbone setup. It also has a lower center of gravity than the outgoing Prius.

2016 Toyota Prius Three standard alloy wheel

This means that though acceleration is still not its strong suit, you now drive the Prius, rather than point it down the road. Would we rather be driving a Mazda Mazda3 or even the new Honda Civic? Yes we would. But we also found driving the new Prius to be more entertaining than the Toyota Corolla and much more fun than a Dodge Dart or Nissan Sentra.

The braking system is another of its high points. The pedal feels natural and the brakes are easy to modulate with the regeneration function now barely noticeable. There's also good feedback through the pedal.

2016 Toyota Prius Three headlamp

Both around town and on the freeway, the ride is much more compliant. Point it into a corner and there's no longer any noticeable body lean. Not only is it well-controlled on smooth pavement, at higher speeds both large bumps and road imperfections are absorbed nicely by the suspension.

The latest Prius also does a nice job of isolating outside noise in around town driving – especially for a compact sedan. But as road speed increases, so does the level of tire noise that enters the cabin – especially at highway speeds on concrete roadways.

2016 Toyota Prius Three center stack

2016 Prius prices

The 2016 Prius is available in six trim levels (Prius Two, Prius Two ECO, Prius Three, Prius Three Touring, Prius Four and Prius Four Touring). 2015 Prius pricing starts at $25,035 for a base Prius Two and can top out at around $35,000 for a Prius Four Touring with the Premium Convenience Package and most of the accessories.

Our 2016 Prius Three tester landed about mid-pack with a base price of $26,250. Adding the $1,915 Advanced Technology Package (power moonroof, head-up driving display, pre-collision system, lane departure alert, full-speed dynamic radar cruise control, auto high beams), $289 for body side moldings, $225 for carpeted floor and cargo mats, $125 for door edge guards, $69 for a rear bumper appliqué, $49 for a cargo net and $65 for wheel locks, plus an $835 delivery and processing fee, brought the total MSRP to $29,842.

2016 Toyota Prius Three center console

The Bottom Line

In our week with it, we found a lot to like about the fourth-generation Toyota Prius. Not only is it incredibly fuel efficient, if you're an eco-nerd there are plenty of ways you can measure as well as improve your driving efficiency. It also has more cargo space than the previous generation and, topping it off, it possesses driving dynamics that are a vast improvement over the outgoing model.

On the other hand, rear visibility remains compromised and its handling, though much improved, is hardly would you would call "sporty." Finally, you either love the new styling or you hate it.

It is, in a way, a shame that the price of gas still hovers in the low to mid $2 range because this Prius is the best one yet – and by a long shot. Not only does it build upon the previous model's strengths, it also addresses many of its weaknesses. Current owners should be thrilled with it, but with gas prices what they are, it may be hard convincing others to consider one.

2016 Toyota Prius Three rear fascia