I am in the market to buy a new Prius, but how come prices can differ so much?

Question

Within a 10 mile radius of where I live, a brand new Prius from a certain dealer may cost 28,000 dollars, where a brand new Prius, same trim, same everything, will cost 24,000 dollars. Am I missing something? Why would the prices differ so greatly? I can understand used cars based on certain reasons, or vastly different locations, but two of the same brand new cars in the same area?

Answer 1

http://www.toyota.com/prius-hybrid/

use the "Build your Prius" link under any of the Explore, Research, Shop tabs and enter your ZIP code to see what the MSRP is in your area for a particular trim (base or touring) and option package Prius.

You should not pay more than MSRP.

Since the Prius is in such high demand right now (thanks to the recent run-up in gasoline prices), and Toyota hasn't been able to produce them fast enough (thanks to a hybrid battery pack production shortage), the Prius can be hard to get.  Even used Prius prices are selling for at or over new prices, for availability reasons.

Some dealers may have Prius on-the-lot.  Some dealers may have a several month waiting list.  If you are not picky on the option package or the color, you could get a Prius sooner.

Avoid the dealers that add a "market adjustment" or "availability surcharge" price over MSRP, just so that you can get a Prius sooner.  Also avoid the dealers that add dealership-added/unneeded high profit margin items like paint/fabric protectant ("Scotchguarding"), pin-striping, upgraded tires/wheels, window etching, LoJack, or high-pressure extended warranty sales.

It is unlikely that you'll find a dealer charging less than MSRP in the current market, but it may happen...

As for the batteries themselves:

The lead-acid (Pb-A) 12v accessory batteries in hybrids tend to be smaller than those found in every traditional gasoline vehicle. Recycling programs are in place for traditional lead-acid batteries.

All the hybrids on the market use NiMH (Nickel-Metal Hydride) batteries, which contain no heavy metals (so they're not hazardous waste, like the Pb-A batteries), and are easily recycled.  (Toyota even has a label on the hybrid battery packs, stating who to contact and how to recycle them, and Toyota offers a $200 "bounty" for each one to make sure that they're recycled.)

In the US, the Toyota Prius comes with a basic new vehicle ("bumper to bumper") warranty for 3 years/36,000 miles, powertrain warranty for 5 years/60,000 miles, and a hybrid vehicle system warranty (which includes the hybrid battery pack) for 8 years/100,000 miles. If you live in a California-emission state, the hybrid battery is further covered under the CA emissions warranty out to 10 years/150,000 miles. (that's a full warranty - not pro-rated - so no cost to you for parts or labor.)

Hybrid battery replacements are extremely rare (in or out of warranty). If you plan on buying the entire pack from a dealer, new it would be about $3000, but then again you could just replace the individual bad cell, or you could get an entire used battery pack from a wrecked vehicle for much cheaper (less than US$1000 on eBay).

Usually the mythic "article" from The Mail on the nickel in the hybrid cars' NiMH batteries is quoted from a now retracted article. The retraction that clears up this bit of misinformation is at: http://www.mailonsunday.co.uk/pages/live...  (They were using data from the early 1970's about the INCO-Sudbury nickel mine, which was more than 20 years before the first hybrids needed NiMH batteries, and the plant has greatly cleaned themselves up and reforested the area since then. If you were to add up the amount of nickel in the million+ hybrids sold since 1997, the total is less than 1% of the world's annual nickel production (far more nickel is used for stainless steel, for example).)

As for the extended warranty...  I haven't heard of very many Prius owners that have had the extended warranty pay for itself.  (I had one on both my 2001 and 2004 Prius, and they've run out before paying off...)  But it may be worth it to you for peace of mind, just in case you might need it, or for the relocation/towing benefits.

Just be sure that if you get an extended warranty, that you get the one backed by Toyota, the Toyota Extra Care Platinum Plan, and not from some 3rd party.  You have until 3 years/36,000 miles from the vehicle's in-service date to decide to buy it, so don't be pressured to buy it at the time of sale.  You can buy it from any Toyota dealer, and you can haggle on the price, so you have time to shop around.  The longest term 7 year/100,000 mile/$0 deductible plan is available in the US for <$1000 at several dealers (MSRP $1850 http://www.toyotafinancial.com/consumer/... ).  More information (though dated), including some suggested extended warranty dealers, is at http://www.vfaq.net/docs/ExtendedWarrant...

Answer 2

Don't buy a hybrid. I tell you now that in a couple more years, you're going to hear a lot about how mad the first hybrid buyers are when they have to replace the SUPER EXPENSIVE batteries in their cars. Not only the cost, but the people who are doing this for the environment are doing more damage by buying the batteries that are filled will lead and acid than simply buying a normal fuel efficient car. Just get a diesel Jetta or something. they get better mileage than Prius' anyways.

Answer 3

If both cars are identical and they're both new then there are only two reasons for the difference in price. Either one dealer is charging more than window sticker for it, or the other dealer is giving a discount on it. Since Prius is a hot commodity, I tend to think it's the first reason.

If any dealer has an addendum sticker next to the factory sticker with "Market Adjustment" pricing, drive as fast and as far away from it as you can. That's an old school way of s******g you. They're telling you right up front, "We're selling this car for more than the factory says to because we know you want it so badly that we can stick it to you and make a huge commission for ourselves."

If the $24000 car is actually discounted, be very careful of any up-sell techniques such as "We have a deposit on it already. But if you really want it, I think my manager will let it go right now for sticker ($28000).

Lastly, wherever you buy it, be sure not to buy any after market products like stain guard for the seats and carpet, or paint sealer, or undercoating. All new cars come from the factory with those items already on them ... and at no extra cost to you. The only good thing after- market items do is make the sales and finance managers richer with the huge commissions they make off those worthless items.

Answer 4

The value of anything is what a willing buyer will pay and a willing seller will accept. Each dealer can set their own prices. The MSRP (window sticker) is the Manufacturer's Suggested Retail Price, The dealer can set a price higher or lower. Some may be willing to sell for less than others.

The Prius is a popular car right now, and there are more buyers than available vehicles. The laws of supply and demand are working. As long as there are people who are willing to pay the price, the dealer will charge as much as he can!

If a vehicle is not selling well, dealers have to discount the price. In the case of the Prius, there is no need to discount. The question is how much to add to the MSRP,  

Answer 5

prius is da shizznit right now so if u dont pay the 28k, somebody else will....believe dat mo-fo.....

Answer 6

Just go with the low price, but make sure you read the fine print.

A new Prius can be purchased for $24000, but does that include all the add on charges? Dealer Prep, Documantation Fees, or ,my favorite "market adjustment" fees.

And watch out when you go into the "Business Manager" office. He will try to sell you everything from extended. warrantees, to paint and fabric protection. Just say no, watch what you sign, and have your bank or credit union write the loan.

The Toyota Prius is THE hot car today. So it takes a lot of money and a big lever to pry one from most Toyota dealers hands

Answer 7

I am on board in INSIDE up to one point.

The Prius is a very technologically complicated car.  This might be one of the very few that I would suggest the extended warranty on - especially if it covers those batteries.  If a battery bank fails on a Prius, you are staring at a $6-8k bill.