Are Prius incentives lowering existing Prii resale value?

JackDodge · 08-05-2007, 10:14 AM

http://www.detnews.com/apps/pbcs.dll/artic...D=2007708020449

The above article references incentives offered by Toyota of up to $2000 that are designed to offset the gradually diminishing tax credit. Back in November 2006 while I was contemplating a HyCam, the dealer gave me a trade-in price for my Prius of $18,000. Out of curiosity, I ran my car's specs through edmunds.com as well as bluebook.com and both gave me a private sale price of $17,000 and my Prius doesn't even have 36,000 miles on it yet, no dents or scratches or mechanical problems. Granted, the car is a little more than eight months older since the HyCam issue but come on. It's beginning to look as if my Prius will never have a trade-in or private sale value that will offset the price of a new car to my satisfaction so it looks as if my original plan is still the most viable one: Drive the Prius until the extended warranty has expired and convert it to EV. Hopefully by then, the cost of the conversion will be a lot lower than it is now.

mrg · 08-05-2007, 12:08 PM

[quote]
http://www.detnews.com/apps/pbcs.dll/artic...D=2007708020449

At that time (November 2006) I sold my 2004 (orignal $22,400. Prius okay that is with my tax credit) without nav, without leather, and without modifications for $20,500. I don't know why but, I noticed the 2005's were not selling for more than the same equipped 04's.

I did not wait for lithion or EV only model. I am enjoying my 07 Touring while we wait for that next great thing. Prius resale value will still be higher than anything like it.

Phred · 08-05-2007, 12:53 PM

Well, I will say that we bought a new (rather than used) Prius in May because the $20,988 price for our package #2 was within a couple thousand dollars of the used 2005's we were looking at that were not quite as well equipped...

JackDodge · 08-05-2007, 02:35 PM

<div class='quotetop'>QUOTE(Phred @ Aug 5 2007, 12:53 PM) [snapback]490890[/snapback]</div>

Quote:

Well, I will say that we bought a new (rather than used) Prius in May because the $20,988 price for our package #2 was within a couple thousand dollars of the used 2005's we were looking at that were not quite as well equipped...
[/b]

That's it, precisely. Why pay 18,0000 or 19,000 for a used Prius when you can get a new one for a few thousand more? I wouldn't

Still, 17,000 is almost 74% and that's a return you can't get from a lot of American cars. Anyway, I don't have a good reason to trade it in but I like to keep up to date on its value.

NoMoShocks · 08-05-2007, 05:38 PM

There is no doubt that any adjustment in the price of a new Prius will affect the value of a used Prius, but the question is how much? With all the other factors that drive market values, incentives on new cars by itself may not be very significant.

The resale value for the Prius seems to be very high anyway. The best way to maintain the resale value of your car is to keep it clean, and when the time comes, try to sell it on your own rather than trading it in at a dealership.

In my opinion, the retail values of all used cars are over inflated, and I have made the determination I should only buy new cars.

If you figure that the first 50,000 miles for a car are the best miles.
The second 50,0000 are OK, and
Over 100,000, some major repairs tend to come due, then:

Say a brand new Prius costs $24,000
Why isn't a Prius with 33,000 miles on it 2/3 the price of a new one, $18000?
Why isn't a Prius with 50,000 mile on it 1/2 the price of a new one, $12,000?

Used car prices run higher than they should, and on top of that, you can get a better interest rate and longer term on a new car so always buy a new car if you can qualify, unless you can get a wholesale price on a used car and pay cash for it.

It is often said that there is this huge drop in price when you drive a new car off the lot, but that is mostly the difference in the retail to wholesale price, and applies the same if you buy a used car at retail price and then come tried to trade it in on another car a week later at wholesale price.

This is evidenced by the fact that a dealer will sell the same car with 5-7K miles for about $1000 less than a brand new one, but if you bring in the same car with 5-7K miles on it looking to trade, they will offer $5000 less than the new one.

I think people are best off to buy a new car and drive it for 100,000 miles, sell it on their own and go buy another new car.

morpheusx · 08-05-2007, 07:04 PM

quite honestly 100,000 miles is an easy accomplished feat on 95 % of all cars with just a little routine maintenance.
According to consumer reports the most expensive year of car ownership for maintenance and repairs is the 7th year.

NoMoShocks · 08-06-2007, 12:30 AM

<div class='quotetop'>QUOTE(morpheusx @ Aug 5 2007, 04:04 PM) [snapback]490999[/snapback]</div>

Quote:

quite honestly 100,000 miles is an easy accomplished feat on 95 % of all cars with just a little routine maintenance.
According to consumer reports the most expensive year of car ownership for maintenance and repairs is the 7th year.
[/b]

I agree that most cars can go over 100,000 miles. I just think the first 100,000 miles are the best miles.

pyccku · 08-06-2007, 07:37 AM

So long as it is difficult to get a new Prius, the used ones will continue to hold their value.

It doesn't matter that Toyota is offering a $2K incentive if I need a car right now and the earliest they can get me one is 2-3 months down the road!

What I can see happening is the customer walks onto the lot, is told they have no Prii in stock (and won't for 2-3 months), so either they buy something else (not likely if they have their heart/wallets set on a Prius) or take the wait. Not everyone wants to wait, so they may turn to a used vehicle.

Which works out great for the current Prius owner - go to the dealership, order your vehicle, then when it comes in sell the used one.

I think the Prius is a different mind-set than another car. If I go onto the lot and know that I want a Camry and they don't have what I want, they may well have something else that fits my needs. But a person who decides they want a Prius isn't going to decide on a Camry or Corolla if the dealership doesn't have the Prius in stock!

Of course, I could be wrong. But that's how we were with our Prius. We had a 2004 Sienna to trade, it was in great shape and we didn't really NEED to replace it. We knew we wanted a Prius, and if they didn't have one in stock, we certainly weren't going to buy something else.

08-05-2007, 10:14 AM	#1
JackDodge Independent voter Join Date: Sep 2005 Location: Bloomfield Hills, MI Posts: 2,304 My Car: Other Hybrid Package: N/A Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	http://www.detnews.com/apps/pbcs.dll/artic...D=2007708020449 The above article references incentives offered by Toyota of up to $2000 that are designed to offset the gradually diminishing tax credit. Back in November 2006 while I was contemplating a HyCam, the dealer gave me a trade-in price for my Prius of $18,000. Out of curiosity, I ran my car's specs through edmunds.com as well as bluebook.com and both gave me a private sale price of $17,000 and my Prius doesn't even have 36,000 miles on it yet, no dents or scratches or mechanical problems. Granted, the car is a little more than eight months older since the HyCam issue but come on. It's beginning to look as if my Prius will never have a trade-in or private sale value that will offset the price of a new car to my satisfaction so it looks as if my original plan is still the most viable one: Drive the Prius until the extended warranty has expired and convert it to EV. Hopefully by then, the cost of the conversion will be a lot lower than it is now. __________________ "Democracy is the theory that the common people know what they want and deserve to get it good and hard."- H.L. Mencken

08-05-2007, 05:38 PM	#5
NoMoShocks Electrical Engineer Join Date: Jan 2007 Location: Camas, WA Posts: 1,024 My Car: 2007 Prius Package: #5 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	There is no doubt that any adjustment in the price of a new Prius will affect the value of a used Prius, but the question is how much? With all the other factors that drive market values, incentives on new cars by itself may not be very significant. The resale value for the Prius seems to be very high anyway. The best way to maintain the resale value of your car is to keep it clean, and when the time comes, try to sell it on your own rather than trading it in at a dealership. In my opinion, the retail values of all used cars are over inflated, and I have made the determination I should only buy new cars. If you figure that the first 50,000 miles for a car are the best miles. The second 50,0000 are OK, and Over 100,000, some major repairs tend to come due, then: Say a brand new Prius costs $24,000 Why isn't a Prius with 33,000 miles on it 2/3 the price of a new one, $18000? Why isn't a Prius with 50,000 mile on it 1/2 the price of a new one, $12,000? Used car prices run higher than they should, and on top of that, you can get a better interest rate and longer term on a new car so always buy a new car if you can qualify, unless you can get a wholesale price on a used car and pay cash for it. It is often said that there is this huge drop in price when you drive a new car off the lot, but that is mostly the difference in the retail to wholesale price, and applies the same if you buy a used car at retail price and then come tried to trade it in on another car a week later at wholesale price. This is evidenced by the fact that a dealer will sell the same car with 5-7K miles for about $1000 less than a brand new one, but if you bring in the same car with 5-7K miles on it looking to trade, they will offer $5000 less than the new one. I think people are best off to buy a new car and drive it for 100,000 miles, sell it on their own and go buy another new car. __________________ Lightning Green McQueen, and owner Larry 2007 Pkg 5, Jan 2007 with modifications: Toyota Mudguards Feb 2007 LED Signal mirrors March 2007 Wheelskins Leather Steering Wheel March 2007 ScanGuage II, March 2007 BT Tech Stiffening Plate, March 2007 Nokian WR 195-60R-15 tires, Nov 2007 Solar Gaurd window tint, Feb 2008 Fog Lights on idependant of headlamps, Feb 2008 BT Tech Strut Tower Brace, April, 2008

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08-05-2007, 12:08 PM	#2
mrg Senior Member Join Date: May 2006 Posts: 120 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	[quote] http://www.detnews.com/apps/pbcs.dll/artic...D=2007708020449 At that time (November 2006) I sold my 2004 (orignal $22,400. Prius okay that is with my tax credit) without nav, without leather, and without modifications for $20,500. I don't know why but, I noticed the 2005's were not selling for more than the same equipped 04's. I did not wait for lithion or EV only model. I am enjoying my 07 Touring while we wait for that next great thing. Prius resale value will still be higher than anything like it. __________________ 2007 Prius Barcelona Red Touring Model with package #5 Grey leather upgrade which includes leather console cover Sigma Color coded body side molds, Barcalona Red Weathertech Side window rain deflectors BT Tech stiffening plate Sigma Hood deflector Sigma Prius Gas Electric Hybrid decals White TOURING Emblem (rear) Sigma Signal Mirrors, Barcalona Red DICE Coastal LockPick3 and EV switch Apple iPhone Proud owner of a hybrid since December 2003. 04 Prius Black

08-05-2007, 12:53 PM	#3
Phred Join Date: May 2007 Posts: 25 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Well, I will say that we bought a new (rather than used) Prius in May because the $20,988 price for our package #2 was within a couple thousand dollars of the used 2005's we were looking at that were not quite as well equipped...

08-05-2007, 07:04 PM	#6
morpheusx Professor Chaos Join Date: Mar 2007 Location: Akron, OH Posts: 1,227 My Car: 2007 Prius Package: #2 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 3	quite honestly 100,000 miles is an easy accomplished feat on 95 % of all cars with just a little routine maintenance. According to consumer reports the most expensive year of car ownership for maintenance and repairs is the 7th year.

08-06-2007, 07:37 AM	#8
pyccku Happy Prius Driver Join Date: May 2007 Location: Surprise, AZ Posts: 225 My Car: 2007 Prius Package: #2 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	So long as it is difficult to get a new Prius, the used ones will continue to hold their value. It doesn't matter that Toyota is offering a $2K incentive if I need a car right now and the earliest they can get me one is 2-3 months down the road! What I can see happening is the customer walks onto the lot, is told they have no Prii in stock (and won't for 2-3 months), so either they buy something else (not likely if they have their heart/wallets set on a Prius) or take the wait. Not everyone wants to wait, so they may turn to a used vehicle. Which works out great for the current Prius owner - go to the dealership, order your vehicle, then when it comes in sell the used one. I think the Prius is a different mind-set than another car. If I go onto the lot and know that I want a Camry and they don't have what I want, they may well have something else that fits my needs. But a person who decides they want a Prius isn't going to decide on a Camry or Corolla if the dealership doesn't have the Prius in stock! Of course, I could be wrong. But that's how we were with our Prius. We had a 2004 Sienna to trade, it was in great shape and we didn't really NEED to replace it. We knew we wanted a Prius, and if they didn't have one in stock, we certainly weren't going to buy something else.