matrix and pontiac vibe

I don't know what's different on the inside, but underneath they are the same... all Toyota running parts. But, assuming you are comparing similar trim levels, the Vibe actually costs more than the Matrix (before you figure in discounts). Take a look at these (from autos.msn.com)

2005 Pontiac Vibe MSRP - $17,130 - $20,455 2005 Toyota Matrix MSRP - $14,860 - $18,850

Prices for 2006 will probably be a bit higher for both. Now I don't know if the Vibe has been eligible for that desperate "employee pricing" discounting that the big 3 have promoted this year. If it was, then perhaps the price you saw for a Vibe was a discounted price (this promotion ends this week). Of course, you can probably negotiate a bit off the price of a Matrix.

Also, although the basic warranty for both is 3 years/36,000 miles, the Matrix has a longer powertrain warranty than the Vibe (from autos.msn.com):

Matrix - 6 years/60,000 miles Vibe - 3 years/36,000 miles

If you trade up every few years, the Matrix, despite a slightly lower price, still has higher resale value. It loses a lower percentage of its original value each year than Vibe does.

Advantage: Matrix.

Sorry, that should say 5 years/60,000 miles for the Matrix.