Will Toyota's hybrid price increases affect dealer markups?
Still leaving all the competition behindEffective August 1st, the Toyota Prius will cost $500 more, starting at $22,720. Soon after that, on August 25th, the Camry hybrid will also see a $500 increase that will bring its base price up to $26,870 as the price of the Highlander hybrid increases $518 to $35,445.
Considering that most automakers are raising prices on any vehicle that can sell to help offset both declining auto sales and increased commodity prices, the price increase is neither surprising or unexpected. However, when coupled with dealer markups as high as $3,000 - $5,000, isn't the pricing of Toyota's hybrid vehicles becoming a little ridiculous?
Labels: Highlander hybrid, Hybrid Vehicles, toyota camry hybrid, toyota prius
posted by Dahcredyns at
7:55 AM
7 Comments:
It's simply supply and demand. Toyota knows they have a winning auto everyone wants. So why not raise the price? I'd be shocked if they didn't.
yes...unlike the increase in the price of oil, Toyotas stock value isn't effecting the price on the sticker! Did anyone see that article on EV World noting Toyota researching the "Air Batteries" like the little ones in hearing aids? I really didn't know that existed, a battery that would charge on Oxygen (of course here we go, now our cars and using up all the oxygen we need to breath!). I don't care, I like it!
Well, I don't mind Toyota making a little extra money on hybrids because Toyota will reinvest that money. Dealers on the other hand don't.
Honda had just announced the pricing for their Prius. Er, I mean their Global Small Hybrid, LOL. The one that so faithfully imitates the shape of the Prius: http://techon.nikkeibp.co.jp/english/NEWS_EN/20080728/155563/
According to that, the Honda Prius (LOL) will cost under $19,000.
I think there is going to be some pricing pressure on Toyota when that Honda gets released. People will look at a Prius and the Honda... Prius, and might go for the cheaper one. :-P
Does anyone know what the projected MPG will be? Sounds like the Mild hybrid philosophy here, the motor will be almost employed all the time? No "all electric" for low speeds?
I think most people will be happy if this is coupled with increased production and shorter wait times. Also, I've read at least some rumors that there will be rear disc brakes on the U.S. Prius for the first time, sot there may be a few concrete improvements that are built into that price hike to soften the small blow.
On the Honda "prius" competition comment, while many of us who are interested in hybrids might care about full vs. mild/partial, etc., if Honda gets comparable EPA mileage ratings, that is all most customers will care about. Then it will come down to other features, finish, etc. Also, remember base prices on Hondas almost always are without AC (which is very expensive as a dealer installed option) and stereo, both of which come standard in the base price of the Prius. If Honda goes the dealer installed options route, you can add @ $1,500 to the base price.
And remember, while Honda is coming out this year with their Prius competitor, Toyota will quickly trump that with the 2010 third gen Prius due out 2nd qtr. of 2009. If Toyota holds the price down on that, then the Honda will be up against a bigger, faster Prius that gets another 5-10 or more EPA MPGs (if what we have been reading is close to accurate). And if the Honda doesn't come out until 2009, then there will be less than half a year before this happens.
In the meantime, I don't see the Prius losing sales to the Honda, as the demand seems to be higher than Toyota can fill in the next 6 months already. Toyota is certainly already losing quite a few customers to its inability to have cars on the lot. If the Honda syphons off some Prius demand, this may actually help Toyota by reducing wait times and possibly undermining the markups some dealers have been putting on the Prius.
I hope the Honda is a worthy competitor for the Prius, as there is definitely room in the market, at least now, and we need more affordable hybrids to open the option to less affluent buyers.
I have to agree that I don't really see Honda 'challenging' the Prius or Toyota's hybrid vehicles. Ultimately, Honda will just add some supply to a market where Toyota can't keep up with demand. Hopefully, Honda can add enough supply where Toyota dealers have to work a little to achieve sales.
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