An 05 Prius is worth no more than 7000. Better still, get an 06 with more airbags, refreshed exterior, optional leather, backup camera, etc. for $7500 (Package 8).
I agree with those saying the price is high. If you can talk them down $2500-$3000, then it might be worth a purchase, as long as the vehicle checks out. You can certainly find a better deal if you go private party, but I honestly have no idea what it's like to finance a private party purchase. I bought an 05 with 120k (and a golden service history) in Dec 14 for $7k out the door, and I feel like I left around $1k on the table just because I didn't really care to negotiate harder. I know every market is different, but if your market is really going to squeeze $9k out of you for a 10-year-old Prius, I'd go private party or eBay.
I like private party because most of them are willing to help you out on the sales tax (i.e. declared sale price). But if you need to finance the car, maybe private party is not so good.
