New or Used?

[emeticmedic]

I'm fairly new to this forum, but have long been an admirer of the Prius ever since viewing Larry David's infatuation on Curb Your Enthusiasm.

I have done a lot more research since then and the Prius is firmly at the top of my list, far above everything else. I am still in search mode, since my wife still has a year of car payments and I really don't want two at once.

I'm wondering what advice others have on buying used versus new. I have always looked at new because of the depreciation factor, but since 2 year old Prii are selling for thousands more than new currently in this area, that seems to be less of an issue. I also am not crazy about a $400 or $500 monthly payment, and obviously with a new one, that's what I'm looking at.

I guess the main things to consider are warranty limitations, mileage and battery life with used. I'm also wondering if prices are expected to come down in general with production increases and owners of older Prii possibly looking to sell with the next generation soon to come out. I have also looked at the Honda Civic Hybrid, which I have found used at much more reasonable prices than used a used Prius, but I like the Prius because of the fuel economy in the city, added cargo space with fold down seats and styling among other reasons.

Any advice on certain model years to look at if I go used? I'd love to find an '06 with less than 50K, but it just seems like there are so few used, and like I said, the ones that are around have ridiculously inflated prices. Any opinions about how buying used as opposed to new impacts the market in terms of supporting the technology/new development/research?

Thanks for any input you can offer.

[richard schumacher]

Buying a used one is fine if you can actually save money doing it. Be certain to pay a certified Prius technician (most of them work for Toyota dealers) to thoroughly check out the car before you buy it. If you get it used from a dealer make sure the dealer will warranty it for at least 30 days. There is a steady trickle of sad stories here from people who found a really good deal on a used Prius that they didn't have checked out, and then faced thousands in repair costs for undisclosed problems.

As you have seen the current intense demand for Prius has wiped out the savings one can usually get on a recent used car. In your situation I would put down a deposit on a new one and save money while waiting for delivery.

The notion of supporting the technology has passed. The value of hybrid technology is already well demonstrated.

[hill]

Originally Posted by richard schumacher

Buying a used one is fine if you can actually save money doing it. Be certain to pay a certified Prius technician (most of them work for Toyota dealers) to thoroughly check out the car before you buy it. If you get it used from a dealer make sure the dealer will warranty it for at least 30 days. There is a steady trickle of sad stories here from people who found a really good deal on a used Prius that they didn't have checked out, and then faced thousands in repair costs for undisclosed problems.
. . . snip
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I think what richard is saying is if you find a used one for a good price (we got ours used w/ all the options back in '04 & saved a bundle!) ... AND it's out of warranty, then have the dealer warrant it.

If it's still under factory warranty (say for example, it has 30K miles on it) then you're able to purchase your OWN extended warranty ... bumper to bumper, '0' deductable. That's what we did, for appx $960. The MFD's were having problems back then, and we waited past the original warranty. The extended picked it up, no problem. Then our SKS ECU went flakey (another $1,000 if it would have been out of pocket). The extended warranty again came to the rescue. Bottom line, new or used, the trick is to be patient while looking for 'a deal'. They're out there.

[Woodman]

My take. Unless you don't have access to home equity and are paying a very high interest rate, you are better off buying new. I've never bought new, but will this time. After seeing 2004-06 cars with 60-100k on the odometer sell for 16k-20k, it seems clear. I would speculate those cars will depreciate down to the 8-11k range in 3-4yrs, when they have gone past 100k mi, are 6-8yrs old and the supply of Prius has caught up. Gas thundered through the $3 a gallon range and Prii were on dealer lots last April...

Prius depreciation is an odd duck. Parts are ferociously expensive at the dealer, the stigma is it will be a high-tech nightmare when the hybrid warrantee runs out (100k). The car is in such a niche for its MPG's that who's to tell what a greater supply from the competition will bring in a couple years. All reasons to believe used ones are currently over priced, even if priced on a normal depreciation curve. As the fleet gets past 1 million and NiMH batteries in the secondary market price closer to $1,000, my bet is used prices will stabilize. But I would be pretty confident that the >50k mi, ~2 y/o used cars, right now, stand to depreciate more than the new ones at MSRP. And THAT is highly unusual.

[Ct. Ken V]

Hi, emeticmedic,

I would seriously consider the advice of the 3 posters before me in your decision process. But for you in NY & Woodman in Mass, you guys live in Calif emissions states & therefore your Toyota factory warranty on the hybrid components is not the standard 8 yrs/100,000 miles but for you two, it IS now 10 yrs/150,000 miles if you buy a new one. I'll bet that eases your worries some. I don't think the factory warranty is transferable, but if someone has bought the official Toyota Financial Services extended warranty, they should be able to transfer it to you if you buy a used Prius with one.

Ken (in Bolton,Ct)

[kazots]

I live in California and I am very happy about the 150,000 mile warranty, but why only California?

[Ct. Ken V]

Hi, kazots,

It's not just a longer warranty in Calif but also in all of New England (Mass, Conn, RI, N. Hampshire, Vermont, & Maine) as well as NY & NJ that have adopted the Calif emissions standards (& maybe even some more states by now).

Ken (in Bolton,Ct)

[richard schumacher]

It's the exact same hardware, but understandably Toyota wants to limit their liability for future repairs where they can.

[emeticmedic]

If it's still under factory warranty (say for example, it has 30K miles on it) then you're able to purchase your OWN extended warranty ... bumper to bumper, '0' deductable. That's what we did, for appx $960. The MFD's were having problems back then, and we waited past the original warranty. The extended picked it up, no problem. Then our SKS ECU went flakey (another $1,000 if it would have been out of pocket). The extended warranty again came to the rescue. Bottom line, new or used, the trick is to be patient while looking for 'a deal'. They're out there.

Thanks for all the input.

Not quite with you on the abbreviation. Fill me in on "MFD" and "SKS ECU".

I'm going to be definitely saving some cash for a decent down payment over the course of the next year, whether I go new or used. If I were buying right now, I would go new, because the price for used, as you know is through the roof. Obviously, since I'm already planning on waiting until next year to buy, I don't mind being on a waiting list.

I'm just wondering if most dealers will want a deposit and then I'm locked into buying new. That's fine if the price of used stays high, but don't you think things will level out by next year and prices may be coming down on used? After all, from what I've read, the next generation Prius is around the corner and they are increasing production, so I'm guessing more people will be ready to step up. I'd love to go in that direction, but once again, if I can find one a couple years old with reasonable mileage and the prices do come down a bit, I would like to go in that direction. Just have to wait and see I guess.

The warranty info and checkup by a certified mechanic is good advice. Are those shops only found at dealers? I have never trusted my local dealer's mechanics, especially if they are looking to sell me car. Why should they be up front about possible future issues if they stand to make money on repairs? Any advice on what problems I should specifically look for?

Again, thanks very much for the useful input.

[richard schumacher]

MFD = Multi-Function Display, the big touch-screen in the center of the dash used by audio, nav, bluetooth, state of battery, etc.

Smart Key System (used with the correct version of the fob it provides keyless entry and starting) Electronic Control Unit (computer)

Check state law, but I'm confident that deposits are always refundable. Guessing at next year's demand, supply and prices is hopeless, I think.

There are Prius techs at independent shops. You just have to find them...