Prices are Falling

Not sure they are "falling"?

I don't live in your area, but did want to check prices, so I went on line and looked at the price for the same car I have - a Prius IV, blizzard white with solar roof option. Jim Barkley Toyota of Ashville, NC has a sale price (NOT the MSRP) for the same car I have of: $29,374. That is VERY close to what i paid for my car, pre-taxes, floor matts, etc back in August. Further, the base Prius II, without any options is being sold for $22,700...that's (also) pretty close to what they were being sold for when I bought my car back in August. So, unless you are getting a much better deal than what's listed on their web site, the prices are pretty similar to the prices I remember back in August.

 

Don't forget that in Sept/Oct the cars with higher level packages started coming with the "extras" added on such as safety connect and the USB port and these added several hundred dollars to the pricetag. Dianne's posts in the dealer section have shown that she is selling cars below MSRP.

 

The safety connect was not available/hardwired on any of the cars delivered in August, or Sept....I took delivery in mid-Agust, and I know for fact is was not on ANY of the cars back then. I think it only became available from about ~ Nov on (at least in the US market).

In August, I bought my car for below MSRP. As I said, I paid about $29.4K in August for my Prius IV, with solar roof package and blizzard white (extra $$ for the Blizzard white). Based on what I see from this one dealer's on-line sale price, I do not see where prices are "falling" thousands of dollars compared to what I paid in Chicago some 6 months ago.

 

Everything is relative. Perhaps the NC dealers were charging over MSRP previously, thus by dropping the "added dealer markup", the car now cost "thousands" less.

 

Yes, the sales practice used since the dawn of man...jack up the prices, then run a sale declaring you will save thousands...

My favorite is the "going out of business sale". Some are legit, while others just use it as a marketing tool to make you think you are getting a good deal.

 

I put up a thread a little while ago indicating that I think that the market for Gen III Prius (all levels except maybe I) has now become "normal" in the US--that is, you negotiate for a price somewhere between dealer cost (which may be different from invoice) and MSRP. The Gen III is no longer so much the latest and greatest that it commands MSRP or above.

Didn't get much comment, except a couple of dealers suggesting that folks might still have to pay MSRP for special orders.

In my post there, I indicated that I could not tell when it began. Codybigdog's post indicates the transition was underway in Chicago in August.

I said in that post that I thought the process was complete by mid-November, when GST dealers--at least the ones I was talking to--began to discount even the less-profitable Prius II, and I finally got one.

Now, I'm not so sure. I mean, I still think that was the date at which you could negotiate for any level of Prius anywhere in the country. However,
I have noticed from postings on PC that prices paid today generally seem lower than October-November (despite the MSRP increase and smaller invoice price increase in October).
That suggests to me that we still haven't found the "equilibrium" price level at which there is no premium on the newness of the Prius.

 

Somebody mentioned earlier in other post. The fantastic advertized prices are usually linked to one, specific car. It can be a marketing tool how they attract the audience to open their doors.

 

FWIW I"ve seen the same practice at some dealers in my life. In fact my second new car purchase 40 years ago was to buy the loss leader, a 69 Ford LTD.
However, I live in the western NC sales area mentioned and I've not seen that bait and switch/loss leader practice used by them on Prius. I bought my 2009 Prius from Barkley just over a year ago and note that Danny purchased his 2010 there also. Both of us have reported satisfaction with our "deals" on this site. I believe the other mentioned local dealer would have sold me my car just as cheaply except his used car manager significantly under appraised my trade. His loss.

 

The bait and switch is pretty common...my previous 2 cars were both "bait" cars at bait prices. Every printed ad will say (x at this price)...I know it's misleading, but i just figured it was pretty common

 

Cash for clunkers decimated inventories in August. Then the allocations were being taken on a special order basis for MSRP. It's taken a while but inventories are back up and discounts are available.

 

No matter what price is "Advertised" you have to remember that when your ready to sign then you will know the prices....

I once was mislead somewhat about the Ad Price only to find that was not available, but there was another close in price...close yes, but not as advertised.

If your ready to deal, cash in hand or paperwork to sign, then you will find your bottom line.