Do they want us to think there is a shortage?

Springtime · 01-02-2006, 01:46 PM

I just picked up my new 2005 Silver pkg#6. The salesperson spent 2 hours going over all the buttons until I was completely comfortable with driving the car home. I am very satisfied in taking the 2005 because I was able to get NAV and get it well below MSRP. The 2006 with NAV was just too far out of my price range.

One thing I noticed immediately was that this car had 220 miles on it and the inspection sticker was Oct 2005. So, this car has been available for sale for over two months! The car was originally delivered to a dealer in Harrisburg (stated on the window sticker) and was driven 200 miles to dealer X (20 miles from me). Dealer X had told me it was available at $27890 and would not be discounted in 2006. I think they had added the trim guards around the doors and wheels to come up with that price. My local dealer swapped for the car ( accounting for the additional 20 miles) and sold it to me for for just over $26K.

I don't think there is a shortage of cars on the East coast if this sat on some dealer's lot for two months! Dealers have gotten in the habit of selling these cars at MSRP+ and my local dealer got the sale because he was willing to go below MSRP.

I think great deals can be had on the left over 2005's if you can get your dealer to realize they will loose the sale if they are not willing to go below MSRP. My dealer was even willing to to cut the price on a 2006 pkg #6 by $350 had I wanted a 2006.

If you are flexible regarding color I think that there are dealers out there who will sell below MSRP to get your business. We have been brainwashed to think that we are getting a bargin when the dealer is nice enough to sell at MSRP. And some dealers are trying to convince us that there are none out there to be had!

My dealer has 9 Prius in stock. (Seven 2006 and two 2005.) Three were picked up today. There are several other Toyota dealers within a 30 mile radius of me and according to their online inventory they all have 2005's and 2006's sitting on their lots! It is to the dealer's advantage to let us believe there is a shortage because we don't even attempt to negotiate below MSRP.

Before you agree on a price let your dealer know you will be shopping other dealers in the area. If they want your business they may be willing to lower their price.

Springtime

Jack 06 · 01-02-2006, 03:19 PM

I have a nasty caution flag to throw your way:

Did you by chance buy a TRAC car? If so, it's not eligible for the tax credit.

TRAC cars are BOUGHT in the name of some dealers to be used as rentals, demos and sometimes for the personal use of their management staff. That is, they are REGISTERED in the name of the dealer ("put into service" to IRS). Dealers are committed not to sell them for at least 3 months, then may sell them as USED cars.

I doubt your is a TRAC (Toyota Rental something something) since it has only 220 miles. My first Prius was a TRAC, and they usually accumulate 2K-12K mi. before being sold. But the time frame (Oct.) makes it suspicious.

Chances are it was simply a non-TRAC demo that wasn't demo'd very much.

As for your main question, it's speculative. We all have to sit back and watch what happens with dealer inventories the next two months. How many of those Priuses were "reserved"? How many deals fell through? How many were "ordered" by people on multiple lists? We'll see what's left on the lots, say, Feb. 1.

galaxee · 01-02-2006, 03:33 PM

still a shortage over here. the only time prii have spent any time sitting on the lot was for the week or so before new year's... people waiting for the 06 credit to take effect.

with that one exclusion, the rest of the time they hardly have time to get them off the truck and through detail before they're gone!

cdavid · 01-02-2006, 03:51 PM

Will you post some of the dealerships in PA that have the cars. I'd like to check their inventory or call some of them to see if they have a car I'm interested in. I'll have to drive 9 hours north to get it though.

Springtime · 01-02-2006, 03:55 PM

Quote:

Originally posted by Jack 06@Jan 2 2006, 04:19 PM
I have a nasty caution flag to throw your way:

Did you by chance buy a TRAC car? If so, it's not eligible for the tax credit.

TRAC cars are BOUGHT in the name of some dealers to be used as rentals, demos and sometimes for the personal use of their management staff. That is, they are REGISTERED in the name of the dealer ("put into service" to IRS). Dealers are committed not to sell them for at least 3 months, then may sell them as USED cars.

[snapback]183093[/snapback]

No, it is definately a new car and is stated as such on the paperwork. The information must be listed on the agreement and the box for new has been checked off. The back of the car title shows where it had been transferred from the Harrisburg PA dealer to Dealer X and then from dealer X to my local dealer. The mileage is correct for the drive from Harrisburg to dealer X and then to my local dealer.

This car had been sitting on dealer X's lot since early December when I first started looking for a deal on a 2005. They had two and would not consider selling the 2005's below MSRP. I think they may still have the other one sitting on their lot!

My local dealer still has a 2005 black pkg #4 sitting on his lot that he has had for a month - I will be interested in seeing how many of these cars are still listed on their online inventory in the next few weeks.

I think there is definately less demand and more supply in the PA area.

Springtime

Jack 06 · 01-02-2006, 04:27 PM

Glad to hear that. Now here's another curveball:

I learned the hard way about alleged "inventories" of Priuses shown on dealers' individual websites. In at least some regions, you'll see almost identical inventories
listed a several dealers. Turns out that's because those dealers are drawing from a "pool" of cars, some---or all--or which may not even be on their lot!

I saw this practice particularly in Texas.

haynesj · 01-02-2006, 04:28 PM

Quote:

Originally posted by cdavid@Jan 2 2006, 04:51 PM
Will you post some of the dealerships in PA that have the cars. I'd like to check their inventory or call some of them to see if they have a car I'm interested in. I'll have to drive 9 hours north to get it though.

[snapback]183117[/snapback]

Lancaster toyota / East Petersburg Pa. Has two 2005's and seven 2006's as of this morning my salesman is Eric Riley.

tessar · 01-02-2006, 04:39 PM

I picked up my 2006 on Dec. 4 after a ten-week wait (12 weeks was the estimate in late Sept.). The direct sales manager said that the waiting list had grown to 20-24 weeks. That sounds like a shortage to me.

Price is determined by supply and demand. It's one of the first things you learn in a college course in Economics. MSRP is only a retail price suggested by the manufacturer. A dealer can sell for anything above the internal cost (and sometimes for less given the right circumstances; see below).

As for buying a car at the end of the model year, you should pay much less than the price at the beginning of a model year. Basically, you incur a whole year's depreciation as soon as you drive off the lot. My wife and I bought a 2003 BMW 325i at the end of 2003 for $2000 below dealer invoice (due to dealer incentives from the manufacturer). You can't do that well with a Prius, but your price should be substantially lower than the going price earlier in the model year.

jacaufie · 01-02-2006, 05:41 PM

The dealer who just sold me 2006 Prius said that the average time for a Prius to remain on a dealers lot is 20 hours.

My car came in the afternoon of 12/30, I heard about it from an Edmunds.com query the morning of 12/31 and contracted to buy it at 11:30AM. The other car that arrived in the same shipment was gone by then, too (an inter-dealer trade, he said).

Sounds like tight supply to me.

Springtime · 01-02-2006, 07:07 PM

Quote:

Originally posted by cdavid@Jan 2 2006, 04:51 PM
Will you post some of the dealerships in PA that have the cars. I'd like to check their inventory or call some of them to see if they have a car I'm interested in. I'll have to drive 9 hours north to get it though.

[snapback]183117[/snapback]

David,

Do a search on the following dealers ( all located in Eastern PA) Diehl Toyota in York PA, Conicelli Toyota in both Conshohocken and Springfield, New Holland Toyota and Del Toyota in Thorndale.

Del Toyota is where I got my car. He actually swapped with a dealer who I knew had the car I wanted but would not go below MSRP for an 05. Del sold me the car and at a substantial discount off of MSRP.

There are several other dealers in the area that do not have their inventory on line, but, a dealer like Del will check out all these dealers as well and if they can find the car you want they will swap for it. So even if a dealer does not have the exact car you want listed online - he may still be able to get one for you.

PA dealers seem to have some left over 05's (mostly pkg #4 and #6) as well as lots of 06's in Pkg #2 and #6 and a few in #7 and #8.

Hope that helps.

Springtime

01-02-2006, 01:46 PM	#1
Springtime Senior Member Join Date: Nov 2005 Location: Eastern PA Posts: 144 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	I just picked up my new 2005 Silver pkg#6. The salesperson spent 2 hours going over all the buttons until I was completely comfortable with driving the car home. I am very satisfied in taking the 2005 because I was able to get NAV and get it well below MSRP. The 2006 with NAV was just too far out of my price range. One thing I noticed immediately was that this car had 220 miles on it and the inspection sticker was Oct 2005. So, this car has been available for sale for over two months! The car was originally delivered to a dealer in Harrisburg (stated on the window sticker) and was driven 200 miles to dealer X (20 miles from me). Dealer X had told me it was available at $27890 and would not be discounted in 2006. I think they had added the trim guards around the doors and wheels to come up with that price. My local dealer swapped for the car ( accounting for the additional 20 miles) and sold it to me for for just over $26K. I don't think there is a shortage of cars on the East coast if this sat on some dealer's lot for two months! Dealers have gotten in the habit of selling these cars at MSRP+ and my local dealer got the sale because he was willing to go below MSRP. I think great deals can be had on the left over 2005's if you can get your dealer to realize they will loose the sale if they are not willing to go below MSRP. My dealer was even willing to to cut the price on a 2006 pkg #6 by $350 had I wanted a 2006. If you are flexible regarding color I think that there are dealers out there who will sell below MSRP to get your business. We have been brainwashed to think that we are getting a bargin when the dealer is nice enough to sell at MSRP. And some dealers are trying to convince us that there are none out there to be had! My dealer has 9 Prius in stock. (Seven 2006 and two 2005.) Three were picked up today. There are several other Toyota dealers within a 30 mile radius of me and according to their online inventory they all have 2005's and 2006's sitting on their lots! It is to the dealer's advantage to let us believe there is a shortage because we don't even attempt to negotiate below MSRP. Before you agree on a price let your dealer know you will be shopping other dealers in the area. If they want your business they may be willing to lower their price. Springtime __________________ Springtime Eastern PA 2005 Silver pkg #6

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01-02-2006, 03:19 PM	#2
Jack 06 Join Date: Oct 2005 Location: Winters, CA: Prius capital of US. 30 miles W of Sacramento Posts: 2,567 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	I have a nasty caution flag to throw your way: Did you by chance buy a TRAC car? If so, it's not eligible for the tax credit. TRAC cars are BOUGHT in the name of some dealers to be used as rentals, demos and sometimes for the personal use of their management staff. That is, they are REGISTERED in the name of the dealer ("put into service" to IRS). Dealers are committed not to sell them for at least 3 months, then may sell them as USED cars. I doubt your is a TRAC (Toyota Rental something something) since it has only 220 miles. My first Prius was a TRAC, and they usually accumulate 2K-12K mi. before being sold. But the time frame (Oct.) makes it suspicious. Chances are it was simply a non-TRAC demo that wasn't demo'd very much. As for your main question, it's speculative. We all have to sit back and watch what happens with dealer inventories the next two months. How many of those Priuses were "reserved"? How many deals fell through? How many were "ordered" by people on multiple lists? We'll see what's left on the lots, say, Feb. 1.

01-02-2006, 03:33 PM	#3
galaxee resident lab rat Join Date: Mar 2005 Location: boilermaker territory Posts: 9,675 My Car: 2005 Prius Model: N/A Package: #5 Thanks: 0 Thanked 93 Times in 37 Posts Friends: 26	still a shortage over here. the only time prii have spent any time sitting on the lot was for the week or so before new year's... people waiting for the 06 credit to take effect. with that one exclusion, the rest of the time they hardly have time to get them off the truck and through detail before they're gone!

01-02-2006, 03:51 PM	#4
cdavid Join Date: Dec 2005 Location: North Carolina Posts: 141 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	Will you post some of the dealerships in PA that have the cars. I'd like to check their inventory or call some of them to see if they have a car I'm interested in. I'll have to drive 9 hours north to get it though.

01-02-2006, 04:27 PM	#6
Jack 06 Join Date: Oct 2005 Location: Winters, CA: Prius capital of US. 30 miles W of Sacramento Posts: 2,567 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	Glad to hear that. Now here's another curveball: I learned the hard way about alleged "inventories" of Priuses shown on dealers' individual websites. In at least some regions, you'll see almost identical inventories listed a several dealers. Turns out that's because those dealers are drawing from a "pool" of cars, some---or all--or which may not even be on their lot! I saw this practice particularly in Texas.

01-02-2006, 04:39 PM	#8
tessar Senior Member Join Date: Sep 2005 Location: Silicon Vallley, CA Posts: 101 My Car: 2006 Prius Model: Package: #7 Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	I picked up my 2006 on Dec. 4 after a ten-week wait (12 weeks was the estimate in late Sept.). The direct sales manager said that the waiting list had grown to 20-24 weeks. That sounds like a shortage to me. Price is determined by supply and demand. It's one of the first things you learn in a college course in Economics. MSRP is only a retail price suggested by the manufacturer. A dealer can sell for anything above the internal cost (and sometimes for less given the right circumstances; see below). As for buying a car at the end of the model year, you should pay much less than the price at the beginning of a model year. Basically, you incur a whole year's depreciation as soon as you drive off the lot. My wife and I bought a 2003 BMW 325i at the end of 2003 for $2000 below dealer invoice (due to dealer incentives from the manufacturer). You can't do that well with a Prius, but your price should be substantially lower than the going price earlier in the model year.

01-02-2006, 05:41 PM	#9
jacaufie Member Join Date: Dec 2005 Location: Beaverton, Oregon Posts: 81 My Car: 2006 Prius Model: Package: Base Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	The dealer who just sold me 2006 Prius said that the average time for a Prius to remain on a dealers lot is 20 hours. My car came in the afternoon of 12/30, I heard about it from an Edmunds.com query the morning of 12/31 and contracted to buy it at 11:30AM. The other car that arrived in the same shipment was gone by then, too (an inter-dealer trade, he said). Sounds like tight supply to me.