I have a 2nd Gen Prius that I bought in 2007. I love it. It does everything I need a car to do. With the rear seats down (they fold flat), it holds a lot of stuff in back. Even with the seats up, there's good cargo space. And the Gen 3s are a little larger.
I keep my bike inside the car on it's side. You can leave the front wheel on, but it's easier to handle if you take the wheel off. Sometimes when my friend is visiting we'll put two bikes in the car, with a blanket in between as Oak said. We haven't had any problems doing that, and there's still enough room for the rest of our gear.
If you search the Priuschat.com forum I'm sure you'll find more comments on how people transport bikes (and various other things). In fact you'll find more information than you can possibly use.
BTW when I test drove my car, my biggest worry was acceleration on hills and highway on ramps, so before I went to the dealer I planned a route where I could really test it out. By the time I was done, I was telling the salesman who with me how much I loved the car. Of course that was not a good tactic for negotiating price, but I just couldn't help myself.
- Gray 2010 carbon WSD road bike, Rivet Independence saddle
- Red hardtail 26" aluminum mountain bike, Bontrager Evoke WSD saddle
- Royal blue 2018 aluminum gravel bike, Rivet Pearl saddle
Gone but not forgotten:
- Silver 2003 aluminum road bike
- Two awesome worn out Juliana saddles