$3000.00 Prius markup: SCREW the customer?
Subsidizing Toyota's stupid SUV decisions?Despite the fact that Toyota has raised the MSRP on the Prius, in addition to the rest of its hybrids, many dealers in hot markets have added a $3,000 markup to the Prius and other hybrid vehicles.
Did the dealers add $3000 worth of add-ons? Nope, they are simply using high gas prices to extort more money out of consumers in the guise of supply and demand. Have Toyota dealerships become commodity exchanges or automotive retailers focused on customer service?
Finish: $3000.00 Toyota Prius Markup: Screw the customer?
Labels: Hybrid Vehicles, toyota prius
posted by Dahcredyns at
9:27 AM
33 Comments:
Unless you drive like 100 miles today, you're an idiot if you buy a prius with a $3000 markup. If you're that stupid, I don't care if Toyota is screwing you over. You deserve it!
Unless you drive like 100 miles today, you're an idiot if you buy a prius with a $3000 markup. If you're that stupid, I don't care if Toyota is screwing you over. You deserve it!
sorry, stupid blogger. anyway, i meant 'drive 100 miles per day'
I agree...screw the dealers and screw Toyota.
But you have to be even more stupid to ONLY buy a Prius for fuel savings alone. There's more to owning a hybrid car than just plain old fuel savings...it's lower emissions, new tech, etc...
I for one will never buy a hybrid if this is the game they are going to play...and I'm a hardcore person when it comes to environmental stuff. If they want to kill the new alternative transports, they are going to do a wonderful job.
And before all the genius economy majors come in and say "supply and demand"...bullshit...it's got nothing to do with it.
I commend Toyota for being early to the hybrid market, but such a move gives the perception that Toyota doesn't care about environmental impact or social implications, but only profit. That might not be true, but that is the perception being evoked by such a business practice, at least in my opinion.
That's fucking crazy. I've never liked a hybrid Prius. For that money people could and should buy a hybrid Camry!
my local dealer in pasadena has the same $3000 markup on the camry hybrid. other dealers in the area don't, and if you are in the market for a toyota hybrid, i'd definitely pick the camry hybrid over the prius if only the prius has the markup in your area.
Yeah but the Camry is like well over $30K right? That's insane!!! What happened to the sub-20's hybrids?
What the hell is the point if I can't afford one?
Hmm... If I were a hybrid car buyer, I wouldn't buy a car with additional 3 thousand markup. Totally that makes 10 thousand price difference.
If you want to save environment you'd better buy something like a mini-cooper, Toyota Yaris or Toyota Corolla. In a battle of 33 mpg vs (ideal) 50 mpg under the condition of 8$ per gallon price it takes more about 125 hundred miles to compensate the price difference. And do we have 8$ per gallon now? Nope. Are we going to have it in the nearest future? Very unlikely. We'll have it in 2-3 years. Considering that many americans change cars every 3-5 years, it doesn't make sense to buy a "marked up" hybrid in the next 2-5 years.
Bad news for huge cities. Hope competitors will squeeze in!
you can get a base camry hybrid around $25,000 that comes with a lot of goodies.
a base prius, with the same goodies, is around the same price.
the prius will get better fuel economy, but the camry hybrid will provide a smoother drive, a much smoother drive.
in terms of sub-twenty hybrids. not in 2008.
>Yeah but the Camry is like well over $30K right?
Nope, I bought my for 29 something including taxes. It was a loaded version. Unloaded one starts from 25.
Still..that's a good chunk of change...well over my budget for a car.
Toyota is'nt the one adding a markup, the dealer is. In a dense market, a dealer will add whatever they can and still sell. I live in West Va and didn't pay a markup. Go to a rural area, save some money and make a vacation out of it.
The last time a Toyota dealer tried that nonsense, I ended up buying a Honda Civic Hybrid. If the Toyota dealer tries it again in 2010 when I buy my next car, then I'll end up with another Honda hybrid or a GM hybrid. It's really as simple as that. I'll pay what the car is worth, but I won't pay for the "privilige" of buying a car.
You guys are missing an important part of a free and capitalist economy. All companies should charge the price the market is willing to pay. If no one was willing to pay the extra $3000, they would not charge it. This is such a non-issue.
it's not toyota charging the extra $3000 and using that demand capital to increase production. its the dealer screwing over customers, and only some dealers.
did that happen with the wii, for example, when demand was higher than supply?
did best buy start adding a markup?. was there a markup war going on between wii retailers? I can provide countless examples that defy your "non-issue".
if the msrp had been increasde by $3000, that's one thing.
when deals arbitrarily add $3000 markup to cover the declining sales of suvs at the expense of consumers, that's called screwing the consumer
now go back to your dealership and screw some more customers.
Ok. If everyone got off the toyota prius bandwagon and said,"hey, these are over priced" and walked away then the dealers would be forced to mark them down. Right now, everyone is panicked out and rushing to buy these way overpriced hybrids and paying way too much! Stop it! You are hurting yourself and not looking at the numbers. How are you saving money when you are paying $400 a month for a hybrid? Look at how many years it will take to recoup your investment? Besides, cars devalue the minute you drive them off the lot. Stop paniking and start thinking. The only reason the price is high is because the consumer is paying it plain and simple-supply and demand. If you have something hot and people are going crazy for it wouldn't you mark it up to make yourself a nice little profit? You consumers buying the expensive hybrids are only hurting yourself and others. Are you too good to drive a Kia? They are good on gas as well and priced way less. In a few yrs all the cars look like crap anyway and you won't get what you paid for them.
I agree with your general point, but I disagree about car value. Used Prius hybrid have been hot, especially since 2004, when the second generation was launched.
And, again, i don't agree with the supply and demand fundamental. Again, the WII was under supplied for at least 6 mos after its launch. Yet, I could go to Target, Best Buy, etc and pay the same MSRP-driven price if I was lucky and found one on delivery day.
That is not the case with the Prius, and I say that's a bad practice when customer service is, or should be, the essence of your business.
Some Toyota dealers might be making a little extra offer these hybrids right now off a FEW consumers, but they are tarnashing their image in the eyes of many, many more consumers.
Is the short term, small markup-driven profit worth the loss of lifelong consumers?
Just ask the Big 3 how hard it is to bring consumers back to your brand once you disappoint them.
Prius battery supply shortage
http://www.autoblog.com/2008/06/04/prius-sales-tank-in-may-toyota-blames-battery-supply
In 2007, Toyota had $2,000 incentive on buying a Prius
http://forums.motortrend.com/70/6325937/the-general-forum/toyota-giving-2-000-incentives-to-anyone-who-will/index.html
May 2008 Prius sales are of by almost 40% from 2007, supply problems
http://www.autobloggreen.com/2008/06/04/prius-sales-down-40-in-may-tight-supplies-blamed/
My experience browsing for a Prius in the Southeast
6/14/2008
Birmingham, AL
Toyota of Hoover = $2000.00 markup and they require $500.00 nonrefundable deposit
Birmingham, AL
Serra Toyota = $1000.00 markup (30 minute drive from other dealer)
Greenville, SC
Toyota of Greenville = $0.00 markup and no deposit required
anon-
we've covered all those issues on this blog. so what?
dealers aren't manufacturers, they're just maximizing profit. none of that markup goes into batteries, the problem causing these markups, which is why markups aren't consistent across dealerships.
there is simply no way around the fact that dealers are choosing profits over customers. essentially, dealers are extorting customers. dealers are adding markups to force consumers into a non-hybrids, rather than just putting them on a list and selling the hybrids at MSRP. buy a prius and we'll screw you over, so why don't you just buy one of our other vehicles, is the way i read it.l
likewise, isn't it very interesting that the same month that gas prices explode, prius sales drop a whopping 40 percent? how did that happen? how does production suddenly drop 40 percent? so, toyota is selling less hybrids today than it was last year?
that's not even part of the 'we can't keep up with demand' conversation. demand has been growing month-after-month for more than a year. also, there has been a strong correlation between bumps in gas prices and spikes in prius sales. so, how do you fall 40 percent behind LAST year's demand?
that's either poor forecasting, or an intentional part of the playbook.
still, i'll give toyota one caveat - as much as this supply shortage sucks, it's not nearly as bad as the fact that US automakers are barely selling any hybrids.
to me this demonstrates the complete lack of corporate responsibility that has existed in the auto industry for many decades - screw customers, screw the environment, screw everything but shareholders.
I'd say Toyota lost any respect they had with me. And I like Toyota too!
I'm waiting for the Honda global hybrid not for a Prius.
i largely feel like you, robert.
still, i think its very important to note that not all dealers are doing this. its still worth it to shop around and maybe you can still find a toyota dealership that chooses customers over short term profit.
nonetheless, waiting until next year is a great idea. there will be more supply and more options.
They are marked up here in Orange county $4,000. People are buying this vehicle. I work for Toyota, the problem is that if people are still buying the car at a premium price, the dealership will continue this trend. If you check on kbb.com, the Prius is the only car that gained equity driving off the lot. Current Prius owners selling their car on the private market is selling them well over 30K. At this point... why not a BMW? I also saw a post in regards about the Camry hybrids. This one is also marked up $4,000.
Human stupidity and greed are what are pushing up the prices...nothing else. Supply/demand are nonsense.
I just paid $4000 over sticker price for my base Prius. I had over 1000 miles and I have someone else willing to fork over $6000 for my Prius which I paid $27,000 and now making $6,000 that I don't have. I am running to the bank now, see you soon.
I don't mind buyers making some money off the car. It's consumers that take the risks on new technologies, such as hybrid cars. Thus, consumers should be able to reap some of the rewards, not dealerships, whom have made an art out of screwing over customers.
Dahc...
That's a very intelligent way to look at it. The dealers do NOTHING other than stock the cars.
I bought my 2008 Prius in December of 2007. It cost less than a mid-sized American car. It's safe, comfortable,reliable,and fun to drive. 50+ MPG is nice, too.
The Prius was attractive because I got a very good deal. A $3000 dealer markup, however, would have made me choose a different car. For once in my life I did something at the right time.
Prices on short-supply items in high demand always get inflated. My Prius is a long-term investment that is already paying off.
"For once in my life I did something at the right time." - Well, congrats, then. I for one hope that's just one of many 'right place at the right time' moments you soon enjoy. Cheers!
Just bought a 2008 Prius Pkg 6 from Perry Motors in Bishop, CA (220 miles from Los Angeles). No dealer markup. Great buying experience. They sell Toyota, Honda, and GM products. My future business is with them!
Sticker shock in Austin, Texas.
Local dealers have taken Prius off their websites to make buyers think that there is a car shortage and justify their $6,000 price increase! That's a 30% markup for a base car!
Went to two different central Texas dealers with different ownership and saw Prius on the lot. Salesperson said they had others on their off-site lot.
Looks like the dealer is making up for lost truck sales at the consumer's expense.
I purchased a used 4-cylinder retractable hardtop convertible for under $20K from local Mercedes Benz dealer.
Supply and Demand has EVERYTHING to do with it. Don't you think that if no one demanded the car, don't you think the price would come down, just like SUV's have?!?! There's a $3,000 premium from the dealers, and they are STILL SELLING OUT! Who cares if they lose some customers right now...they're still selling a lot of cars, and making an extra $3,000 on top of what they would make anyway!!! As for the Wii example, the retailers and/or Nintendo were idiots for not raising the price two times what it has been...the units would still sell like crazy and the retailers/Nintendo are missing out on a big profit.
so, which dealership do you work for?
it obviously doesn't have everything to do with supply and demand if not every dealership is doing it, for example. in southern california, probably the hottest hybrid market in the world, not every dealer is SCREWING the customer.
i've helped a few people shop for hybrids recently and they ended up buying hybrids, or at least putting their name on the lists of dealerships that aren't adding markups. i guarantee they will be repeat customers for those dealerships and they will never go back to the other dealerships.
but why would car salespeople care, most don't last at the same dealership for long anyway.
its interesting too, i've experienced some dealers willing to back off their full markup when you tell them which dealers aren't adding markups. they realize customers are at stake, and they've been willing to negotiate the markup.
don't buy the hype folks, some dealerships actually do value customers, just not most. Shop around and refuse to pay a mark up.
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