Ultimate dealer mark-up +$9K
1 - 18 of 18 Posts
Joined
·
3 Posts
pricing over msrp
We have had only a few arrive at our dealership in sarasota, fl. In every case the demand has been so strong that customers willingly paid $4995 in excess of the msrp in order to obtain this remarkable vehicle. No surprise, really. Supply and Demand is still the dominant economic principle of our economy.
We will shortly have another here - salsa red; package #7. Our price will be $29,247 plus taxes, transfer of tags and dealer fee of $499.
We have had only a few arrive at our dealership in sarasota, fl. In every case the demand has been so strong that customers willingly paid $4995 in excess of the msrp in order to obtain this remarkable vehicle. No surprise, really. Supply and Demand is still the dominant economic principle of our economy.
We will shortly have another here - salsa red; package #7. Our price will be $29,247 plus taxes, transfer of tags and dealer fee of $499.
Dealers usually bite the hand that feeds them
This always happens. Dealers make great profits until the buyers are saturated, then they wonder why there's no loyalty and they have to keep high advertising costs forever.
Car models that are too hot burn out. It's happened to EVERY CAR for decades -- if they get super hot, dealers gouge everybody and the car attains cult status briefly. Then the bottom falls out.
This always happens. Dealers make great profits until the buyers are saturated, then they wonder why there's no loyalty and they have to keep high advertising costs forever.
Car models that are too hot burn out. It's happened to EVERY CAR for decades -- if they get super hot, dealers gouge everybody and the car attains cult status briefly. Then the bottom falls out.
Prius just left my Maybe list. I really need high miles AND some money left over. I think gasoline will go to $3/gal by year end and upwards of $4/gal within five years. If they're gouging this early and there aren't enough cars, that will tear off every bit of savings that might have helped make this tiny little car worth more than a Geo Metro. Instead of giving it to the Saudis, the money goes to Japan's car sector. Either way, we lose as much as we gain - maybe more.
Hi Ed,
Don't give up yet. Spend a Saturday morning and call around. Go to Toyota.com, dealer locater and just put your state in. Then start calling. 4 out of 5 had no mark up. It is a great car. We pay more than a similar standard car and Toyota sells for less than cost. I just don't think slimy dealers should be rewarded. Unfortunately, people are paying markups.
Every decent dealer that I talked to said that wasn't Toyota's way to do business. They were also honest about long waitlists. Call outside of the cities, put yourself on a bunch of lists and your wait may not be that bad.
Pauline
Don't give up yet. Spend a Saturday morning and call around. Go to Toyota.com, dealer locater and just put your state in. Then start calling. 4 out of 5 had no mark up. It is a great car. We pay more than a similar standard car and Toyota sells for less than cost. I just don't think slimy dealers should be rewarded. Unfortunately, people are paying markups.
Every decent dealer that I talked to said that wasn't Toyota's way to do business. They were also honest about long waitlists. Call outside of the cities, put yourself on a bunch of lists and your wait may not be that bad.
Pauline
got my answer
A while back I posted an hypothetical question to see if Prius owners would have paid $30K for their car. I did not get much reaction at the time, but I guess I now have my answer. Kinda makes it tough for those of us who do not have such deep pockets. :roll:
A while back I posted an hypothetical question to see if Prius owners would have paid $30K for their car. I did not get much reaction at the time, but I guess I now have my answer. Kinda makes it tough for those of us who do not have such deep pockets. :roll:
don't despair
My car broker told me she has seen this happen many times. It happened with the new Beetle, the PT Cruiser, the Mini Cooper and now with the Prius. In every instance, demand initially outpaced production and people were paying way over retail for cars. There was massive angst, wringing of hands, cursing of greedy dealers, dealers acting like food vendors at a fasting marathon. Within a few months for some models, maybe a year for others, production matched demand and prices came down. Now you can get deals on Beetles, Pt Cruisers (maybe not the ragtop yet) and Coopers.
Toyota is hardly stupid. They know, certainly by now, that they have a winner and are ramping up production. I've been seeing more Prii in Seattle lately and one of my coworkers saw upwards of 20 on a weekend in his eco-saavy neighborhood. Toyota has indicated that all their cars will be available in hybrid form within three years. For the present, it's a dealer greedfest, and the greediest are spending their capital too soon; their customer base isn't coming back, while dealers who treat customers with a modicum of respect, will get future business. I was told this by the dealer from whom I bought my car. He's been in the business for 25 years.
Granted, it's tough if you need to replace your car now; but if you can wait, it's worth the wait.
p.s. the folks who spent 30k for a Prius will feel pretty silly a few months. Should they decide to sell their Prius or trade it if for a newer model, that extra cash they paid out will prove to have been a total waste of money.
My car broker told me she has seen this happen many times. It happened with the new Beetle, the PT Cruiser, the Mini Cooper and now with the Prius. In every instance, demand initially outpaced production and people were paying way over retail for cars. There was massive angst, wringing of hands, cursing of greedy dealers, dealers acting like food vendors at a fasting marathon. Within a few months for some models, maybe a year for others, production matched demand and prices came down. Now you can get deals on Beetles, Pt Cruisers (maybe not the ragtop yet) and Coopers.
Toyota is hardly stupid. They know, certainly by now, that they have a winner and are ramping up production. I've been seeing more Prii in Seattle lately and one of my coworkers saw upwards of 20 on a weekend in his eco-saavy neighborhood. Toyota has indicated that all their cars will be available in hybrid form within three years. For the present, it's a dealer greedfest, and the greediest are spending their capital too soon; their customer base isn't coming back, while dealers who treat customers with a modicum of respect, will get future business. I was told this by the dealer from whom I bought my car. He's been in the business for 25 years.
Granted, it's tough if you need to replace your car now; but if you can wait, it's worth the wait.
p.s. the folks who spent 30k for a Prius will feel pretty silly a few months. Should they decide to sell their Prius or trade it if for a newer model, that extra cash they paid out will prove to have been a total waste of money.
It is in the nature of a market economy where some individuals have obscene amounts of money while others go without, that the extremely wealthy will pay enormous amounts of money on a whim. The person who paid $30,000 for a Prius will have great fun being the only one on his block for a few months, and then just as likely give the car away to a poor aunt when it is no longer a rarity, and maybe buy a restored 1933 Rolls Royce or an original painting by the latest fad artist to show off in its place. He certainly knows full well that the Prius will be a rarity only for a brief time and that then its re-sale value will plumet. If you are rich enough, the re-sale value is of no concern.
A bigger concern is when (as is happening now) the wealthy bid up the price of housing to the point where low-wage workers cannot afford a roof over their heads, or (as happens in time of famine) those with money bid the price of food up to where the poor die of starvation. At least in the case of the Prius, you can get one for MSRP if you are willing to wait, and you can buy other transportation if you cannot wait.
A bigger concern is when (as is happening now) the wealthy bid up the price of housing to the point where low-wage workers cannot afford a roof over their heads, or (as happens in time of famine) those with money bid the price of food up to where the poor die of starvation. At least in the case of the Prius, you can get one for MSRP if you are willing to wait, and you can buy other transportation if you cannot wait.
Re: pricing over msrp
Good luck
We all gotta make a liv'in, but I gotta live with myself too.
I got my silver prius package #9 3 weeks ago. I waited 2 months. I paid 26500. I would not buy from any dealer marking up a dime over MSRP. You can say anything you want to make a deal happen. I'm familiar with many tactics dealers use. I maintained my position and got a fair deal from an honest dealer (yes, they do exist). For dealers like yourself, you may loose more than you've gained. Toyota has asked consumers to report price markups and have stated that they will reduce dealer allocations based on their findings. Word travels fast, it's the best advertising there is. This forum is an example. I'd say, since you resorted to posting, you're not getting many bites. Try MSRP or less and it will fly off the showroom floor.tucker mayer said:
Good luck
We all gotta make a liv'in, but I gotta live with myself too.
Joined
·
18 Posts
I have to agree with Bob Allen here, the good dealers will give an honest deal and know that their customers will come back again. The dealers that are taking big markups will make one sale to one customer, but will lose out on the repeat business or referrals. I like a lot of people love to go see a new car/truck when it hits the showroom, but I would never buy one that quickly when I know that in 6-9 months they will be begging to get them off the lot to make room for the next model year. When the new Dodge Durango came out last November the price for a fully loaded one was over $42,000......now that same vehicle is selling for $31,000. Granted the Prius will not drop like that, but most new cars do which is why you never buy it when it hits the showroom floor unless you are willing to lose that much value, I am not. So to the people that are willing to pay way over MSRP just to get it that much sooner.....well, its their money and to the Dealers that are doing that.....well, enjoy that one sale, because I doubt that person will be back when they realize how badly they got taken. My 2005 Prius will be here in October and I will be getting it for $500 under MSRP plus getting a $300 check from Toyota for the price increase adjustment. To those that are even considering paying MORE than MSRP, my advice is to just walk away.....but if you really want to throw that money away.....I have some oceanside beach property in Minnesota you may be interested in..... :lol:
Re: don't despair
Seattle? Home of the $4.00 cup of coffee? I don't drink coffee, thank goodness.
jim
It happened with the Volkswagen mini truck 20+ years ago too. Like someone said it's supply and demand. I'll walk before I'll pay over MSRP screw Toyota rip off dealers.Bob Allen said:
Seattle? Home of the $4.00 cup of coffee? I don't drink coffee, thank goodness.
jim
Joined
·
35 Posts
Every time I visit Seattle, I survive on a strict diet of marionberry pie and nonfat lattes from Caffe Ladro. Not a coffee drinker, ever, but MAN if you're anywhere near Seattle, find a Caffe Ladro. ....drooling....
Honest dealer in IL
Placed my Prius order (Tideland Pearl, Opt. 3) on Oct. 23 and will drive it home June 14th. I am really glad he didn't ask for more than MSRP because I don't think supply and demand justify ripping someone off. Just because you can cheat a person, doesn't mean you should. Had he tried, I would have walked away. My salesman who kept in frequent contact with me is David Lagerkvist and the dealership is Libertyville Toyota in Libertyville, IL, about 45 min. north of Chicago. Their waiting list, however, is now 75 persons long.
Klaren
Placed my Prius order (Tideland Pearl, Opt. 3) on Oct. 23 and will drive it home June 14th. I am really glad he didn't ask for more than MSRP because I don't think supply and demand justify ripping someone off. Just because you can cheat a person, doesn't mean you should. Had he tried, I would have walked away. My salesman who kept in frequent contact with me is David Lagerkvist and the dealership is Libertyville Toyota in Libertyville, IL, about 45 min. north of Chicago. Their waiting list, however, is now 75 persons long.
Klaren
Joined
·
18 Posts
I agree with you all that dealer markups on the prius are outrageous. My aunt actually works for toyota corporate in LA and said that Toyota is extremely upset at the dealers for doing this. When i heard this it made me feel better because it is not toyota's fault, but the fault of the salesmen at the toyota dealers. My aunt also said that toyota is working on cracking down on the problem and should hopefully be resolved.
Bottom line is, if the dealer is jacking the price on you, dont buy the car. Send a letter to Toyota let them know the dealer's specifics and you will help to eliminate these salesmen who are taking advantage of prius enthusiats.
Meanwhile, I'm about to order mine can't wait!!!
Bottom line is, if the dealer is jacking the price on you, dont buy the car. Send a letter to Toyota let them know the dealer's specifics and you will help to eliminate these salesmen who are taking advantage of prius enthusiats.
Meanwhile, I'm about to order mine can't wait!!!
1 - 18 of 18 Posts
Join the discussion
Join now to ask and comment!