The Hastings District Council says its decision to buy a Toyota Prius C car will cut costs and benefit the environment.
The move came as part of the council's sustainability incentive project to promote environmentally friendly technologies to the district.
Planning and regulatory committee chairman Rob Heaps described the purchaseas a trial run.
"This is a test case about how much savings will be made in general. If the price is affordable, more of the vehicles could be purchased," Mr Heaps said.
He believed the purchase was about making the right decisions for the environment and community.
Planning and regulatory services group manager John O'Shaughnessy said this change could help local consumers save on fuel and other maintenance costs.
"This will lower costs for them at the petrol pump and encourage people to buy more sustainable, energy-saving cars", Mr O'Shaughnessy said.
The Prius would be used by all council workers and "will be mainly driven around town to get the best value out of the car", he said.
The incentive to buy the Prius was part of a price deal the council had with Toyota, which comes under the Government procurement contract, allowing a significant saving on the normal retail price.
The deal with Toyota also included replacing every council vehicle per 100,000 kilometres.
