Invoice prices not cut nearly as much as MSRP with package price cuts

Discussion in 'Gen 2 Prius Main Forum' started by mkaresh, Apr 14, 2007.

  1. mkaresh

    mkaresh Member

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    A week ago Toyota announced an “Eco-nomic Savings Bonus†on the Prius. This bonus took the form of $600 to $2,000 price cuts on the Prius’ option packages.

    The first question that came to my mind was, “But how much of the cut is real?†Meaning: how large is the cut in the invoice price?

    Well, I now have the invoice prices on these packages, and my suspicion was correct.

    First off, Toyota bumped many option package prices by $150-200 a few months ago.

    Cuts in MSRP, invoice, invoice vs. beginning of year
    Package 2: 600, 442, 442
    Package 3: 600, 243, 123
    Package 4: 800, 356, 196
    Package 5: 2000, 1341, 1181
    Package 6: 2000, 1214, 1054

    Touring 5: 1750, 1178, 1018
    Touring 6: 1750, 1051, 891

    Dealer margins have been cut from around 20 percent to 10 percent of a much smaller MSRP. What this means is that much of this "bonus" will be counteracted in the size of the discount a dealer can provide.

    I've gone into more detail here:

    http://www.truedelta.com/blog/?p=90