Ordering a prius for july delivery

[jmann]

So, I am ordering a prius for delivery in July, what should be my negotiation price goal?

package 7
MSRP: $28221
INVOICE: $25329 (Dealer cost $24959)
DEALER PROFIT AT MSRP: $3264

Dealer: Motorcars in Cleveland, OH

Most sell for MSRP because they are being bought off the lot and right now they are in high demand. However, I suspect that by july, demand will be much lower as many new models of hybrid are introduced in 2007 models on or around july.

I would like to pay $1500 lower than MSRP, $26,721, about 7% profit for the dealer, but I know this is wishful thinking. At $1000 off, $27,221, 9% profit.

I hope to order next week.

[jbarnhart]

Well, if you wait until Toyota has sold 60000 hybrids, you WON'T get the $3000 tax credit. Better figure that into the calculations! July should be pretty safe, but by December you can fugitaboudit.

[Jack 06]

Even after the pent-up demand (Priuses ordered roughly August-December) which we're now seeing bled off has been largely caught up with, you have to take into consideration:

* a 50% tax credit of over $1500 (perhaps coupled with $500 off MSRP in some cases) will still look attractive to a lot of potential buyers

* in CA, the biggest Prius-buying state, what's happening with HOV privileges will (or will not) be a continuing incentive

* even if the Camry Hybrid (soon to be known, I'm sure, more commonly as "the CH", so I'll start using it is out by July, it'll still be a $30K + car, and for many the Prius will still be a $24K + car; on the other hand, no question but that the CH will undercut the high end of the Prius market. Net: major unknown.

* $ oil ---->$ gas: who can predict? For sure, we'll be at the traditional seasonal peak for gas prices---through at least Labor day.

What I'd guess we'll see is a very spotty Prius market, with the cars in well-established current Prius hot spots still flying off the lots at MSRP and sometimes above---and Prius inventories building in most of the vast part of the country between the Western Desert and the Appalachians, with higher discounts applying.

[efusco]

I think you should seriously consider getting your Prius BEFORE July. I seriously doubt you're going to convince anyone to give you $1600 off of MSRP which is the difference in the tax credit after the 60k Toyota Hybrid is sold. That said, the credit MAY extend through the 3rd quarter, but there's no guarantee of that.

If sales are well below current predictions you may negotiate $500 or (highly unlikely) $1000 off, but I seriously doubt it. This car is commanding MSRP and higher now and will continue to for the next year or two at a minimum. That $1600 is the same as 3-5 months of car payments and makes it financially more wise to buy before the end of June just to be sure you qualify for the entire credit.

*This all assumes you will qualify for the credit--ie. you don't pay AMT. If you do pay AMT then you would probably be smarter to wait until after June to see if you can negotiate a slightly better deal than MSRP if there's a brief drop in sales.

[sleeka]

Originally posted by efusco@Jan 13 2006, 12:45 AM
I think you should seriously consider getting your Prius BEFORE July.  I seriously doubt you're going to convince anyone to give you $1600 off of MSRP which is the difference in the tax credit after the 60k Toyota Hybrid is sold.  That said, the credit MAY extend through the 3rd quarter, but there's no guarantee of that.

If sales are well below current predictions you may negotiate $500 or (highly unlikely) $1000 off, but I seriously doubt it.  This car is commanding MSRP and higher now and will continue to for the next year or two at a minimum.  That $1600 is the same as 3-5 months of car payments and makes it financially more wise to buy before the end of June just to be sure you qualify for the entire credit.

*This all assumes you will qualify for the credit--ie. you don't pay AMT.  If you do pay AMT then you would probably be smarter to wait until after June to see if you can negotiate a slightly better deal than MSRP if there's a brief drop in sales.

[snapback]188425[/snapback]

Sort of on the same subject, here in Australia Prius are on at least 3-5 months wait from order and are never discounted.
I have a friend who today is picking up a 3 month old demonstrator Prius (offered for sale last weekend and the colour and model he wanted) with 3000km on it and got A$2800 off normal price!

Now he got a good deal, and a very rare good deal!

Anyone hoping to second-guess the market on a large discount for a hot-selling model 6 months down the track should start investing heavily in the stock market with no research. You will probably have the same success.

[Kiloran]

Your numbers imply that the floor mat option, CF, is part of this deal.
(Otherwise correct 2006 Model Year Prius Calculator, Excel Spreadsheet)

Why July instead of June, which will still guarantee you the credit if you qualify?

Fax an offer to as many dealers in your area as possible.
You only need one to say yes.
Get everything in writing, especially commitments on delivery date, included options, and all fees.
Get a bottom line price.

Good luck.

[Springtime]

Originally posted by jmann@Jan 12 2006, 03:30 AM
So, I am ordering a prius for delivery in July, what should be my negotiation price goal?

package 7
MSRP:    $28221
INVOICE: $25329 (Dealer cost $24959)
DEALER PROFIT AT MSRP: $3264

Dealer:  Motorcars in Cleveland, OH

Most sell for MSRP because they are being bought off the lot and right now they are in high demand. However, I suspect that by july, demand will be much lower as many new models of hybrid are introduced in 2007 models on or around july.

I would like to pay $1500 lower than MSRP,  $26,721, about 7% profit for the dealer, but I know this is wishful thinking.  At  $1000 off, $27,221, 9% profit.

I hope to order next week.

[snapback]188346[/snapback]

OK, you want a 2006 with Nav (pkg #7). Even with a pretty good supply of Prius in Eastern PA you would be hard pressed to get more than $500 off of MSRP. We don't have a shortage of 06's - many sitting on lots waiting to be bought here! Now, if you were willing to take immediate delivery on a 2005 pkg #6 w/NAV that is a different story - $1500 off of MSRP is a strong possibility. Since the 2005 is about $1000 less than the 2006 that is about a $2500 savings. (Plus you are guarenteed the full fed tax credit.)

There are only a handful of 2005 pkg #6 left on the lots and they are selling very quickly because of the substantial discounts offered off of MSRP. Another 10 days and probably all of the 2005's will have been sold in my area.

I don't think waiting until July will get you the discount you want and you risk missing the full benefit of the Federal tax credit. Although I suspect that it will actually be available through the third qtr of this year.

Springtime