Dealer Markup

Mark Dennison · 05-22-2004, 01:29 PM

I am very interested in purchasing a Prius. However, every dealer I have had contact with is charging a 3k to 5k markup over sticker. What have recent Prius buyers experienced in Southern California? I like the Prius, but not enough to pay the ridiculous markup that the Southern California dealers I've had contact with are currently adding to the sticker price.

peart75 · 05-22-2004, 01:33 PM

Quote:

I am very interested in purchasing a Prius. However, every dealer I have had contact with is charging a 3k to 5k markup over sticker. What have recent Prius buyers experienced in Southern California? I like the Prius, but not enough to pay the ridiculous markup that the Southern California dealers I've had contact with are currently adding to the sticker price.

i am in So. Ca. as well. i found a dealership in fresno charging MSRP. I'm not sure about this other one i am working with in san diego, they never really answered me about the MSRP thing. keep looking, there are dealers out there who aren't so shady and won't charge over MSRP and don't have a 6-12 month wait list to boot.

-drew

Mark Dennison · 05-22-2004, 01:55 PM

I would be very interested to know what dealer you choose!

peart75 · 05-22-2004, 02:15 PM

Quote:

I would be very interested to know what dealer you choose!

Mark,

i am working with http://www.michaeltoyota.com, my sales rep is Evan Schroeder. my encounter so far has been very professional. when i signed up i was on a 1-2 month wait list, but i believe the list has grown recently due to some postings about the dealership on this board. i am currently #17 of 33 and they have told me they recieve 8-10 prius each month. they probably quote 3-4 months at this point.

there was another dealership in fresno that quote me 3-6 months but i never signed up, http://www.binghamtoyota.com.

what i did to search was find a location i was willing to drive to, for me i'm up for a 6 hr drive one way. i went to toyota's site and put in a zip code for around the spot i was willing to drive and specified 150 mi radius on the search. it returns a list of dealers and their web sites. i went to each web site and emailed or filled out their contact form. i asked them how the wait for a prius was and if they charge MSRP. i also told them what color and package i was interested in. this is all a bit time consuming, but well worth the 2 hours i spent as i moved from a 6 month list to a 1-2 month list.

it is better to search in rural areas since the demand is not as great out there.

one dealer to stay away from, I-10 toyota in Indio, CA. they force "upgrades" and charge $3K for them, it's lame and it's shady.

hope this helps!

-drew

skruse · 05-22-2004, 05:31 PM

I tried to work with Toyota of Selma CA. The first words out of the salespersons mouth was "there is an immediate $3,000 mark-up." I went to Michael Toyota in Fresno. I placed a $500 deposit for a 2005 Prius. Michael Toyota is professional, courteous and straight forward. The Michael sales representative volunteered that I probably knew more about the Prius than they did.

No pressure, no gimmicks. I placed my order 5 to 6 months in advance. The whole transaction was very calm. I was treated with complete respect.

snarfo · 05-23-2004, 01:23 AM

A couple months ago I started seriously trying to find a new Prius. I e-mailed numerous dealerships on both coasts and actually got some prompt calls, but everyone said 'nine months to a year'. Since I can get THAT deal right here I wasn't too excited. :?

Then I got a call on a Saturday from a dealership in California (wish I could remember the name). The guy said they were getting in a red Prius on the coming Tuesday. Red is not my color of choice, but it was package 9 (which I wanted) so I told him sure! I live in Iowa but i can fly out to California and drive home. THEN he said they have a $4000.00 dealer markup. I laughed and asked him how they could justify such blatant consumer rape. He took offense and patronized me with the economics of supply and demand. I told him if I paid 30 grand for a car that should cost me 26 grand I would be a fool. End of conversation.

That afternoon I ordered a silver package #9 from a nearby dealer. The price is locked in ($26,070.00) and all I had to put down was a $500.00 deposit. That was a bit over a month ago, so now begins the insane wait... two good things about the long wait: it commits me to buying the car and I have plenty of time to get a beefy downpayment ready plus find a buyer for my ancient-but-perfectly-functional 1995 Avalon XLS.

Honestly though, I can't imagine that I'll have to wait a year. Maybe I'm just being optimistic, but surely Toyota will see what a goldmine they have in this car and get some more lines running or something... if they don't capitalize on the wave of good press and popularity they will lose more sales than they already undoubtedly have.

PeterClothier · 05-23-2004, 06:54 PM

I bought my Prius at sticker price this past MOnday at Hollywood Toyota, after a five-month wait. It pays tp be patient.

slowpoke · 05-23-2004, 07:04 PM

Supply and demand...it sucks and screws the consumer.

I remember they were doing this with the P/T Cruiser. 2-3k above MSRP. Sux mang!

gwirtel · 05-23-2004, 11:26 PM

I can understand not wanting to pay a markup, but I don't understand the idea that markup is wrong somehow. I will not pay markup because it puts the car into a price range I don't want to pay, but if after markup it was still the price I was comfortable with, I would pay it. How is dealer markup when demand is high any different than markdown when demand is low? When you buy a car do you just pay sticker because you want to pay MSRP? Or, if you can get it cheaper, do you try to do that? If you haggle with the dealer to get a lower price, then he is entitled to haggle to get a higher price. If you don't like the price, don't buy it.

snarfo · 05-24-2004, 12:25 AM

Oh, I'm sure they had no problems selling it for 30 grand. However, since Toyota (as is my understanding) has a no-haggle clause of some sort with the Prius--- so you pay sticker price, there is enough markup there to be what i would consider 'fair'. From the dealer invoices I could find, my $26,000.00 Prius nets the dealership something like 2500 dollars. The margin on less-equipped packages is commensurately lower.

If my income level was such that the extra 4 grand would have been irrelevant, no sweat. However, I work for a school district and nobody ever got rich working for a school system

I still think a dealership telling me "we're going to bend you over and sock it to you lubeless because we can" is tantamount to consumer rape. Even after buying a car with that policy surely the buyer would be irritated by it... thus giving the dealership a black mark for future sales. It's a short-term gain while risking some long-term ill will. When I bought my Avalon my buying (and subsequent warranty) experience was so poor that I contacted Toyota HQ and the Better Business Bureau to get some satisfaction. I assure you that dealership will never get business from me, nor will they get business from anyone who knows me who I can warn in advance. Same principle applies, I think.

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05-22-2004, 01:29 PM	#1
Mark Dennison Join Date: May 2004 Posts: 3 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Dealer Markup I am very interested in purchasing a Prius. However, every dealer I have had contact with is charging a 3k to 5k markup over sticker. What have recent Prius buyers experienced in Southern California? I like the Prius, but not enough to pay the ridiculous markup that the Southern California dealers I've had contact with are currently adding to the sticker price.

05-22-2004, 01:55 PM	#3
Mark Dennison Join Date: May 2004 Posts: 3 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I would be very interested to know what dealer you choose!

05-22-2004, 05:31 PM	#5
skruse Senior Member Join Date: Apr 2004 Location: Great Central Valley, Fresno, CA Posts: 1,135 My Car: 2007 Prius Package: #6 Touring Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 2	I tried to work with Toyota of Selma CA. The first words out of the salespersons mouth was "there is an immediate $3,000 mark-up." I went to Michael Toyota in Fresno. I placed a $500 deposit for a 2005 Prius. Michael Toyota is professional, courteous and straight forward. The Michael sales representative volunteered that I probably knew more about the Prius than they did. No pressure, no gimmicks. I placed my order 5 to 6 months in advance. The whole transaction was very calm. I was treated with complete respect.

05-23-2004, 01:23 AM	#6
snarfo Join Date: May 2004 Posts: 53 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	A couple months ago I started seriously trying to find a new Prius. I e-mailed numerous dealerships on both coasts and actually got some prompt calls, but everyone said 'nine months to a year'. Since I can get THAT deal right here I wasn't too excited. :? Then I got a call on a Saturday from a dealership in California (wish I could remember the name). The guy said they were getting in a red Prius on the coming Tuesday. Red is not my color of choice, but it was package 9 (which I wanted) so I told him sure! I live in Iowa but i can fly out to California and drive home. THEN he said they have a $4000.00 dealer markup. I laughed and asked him how they could justify such blatant consumer rape. He took offense and patronized me with the economics of supply and demand. I told him if I paid 30 grand for a car that should cost me 26 grand I would be a fool. End of conversation. That afternoon I ordered a silver package #9 from a nearby dealer. The price is locked in ($26,070.00) and all I had to put down was a $500.00 deposit. That was a bit over a month ago, so now begins the insane wait... two good things about the long wait: it commits me to buying the car and I have plenty of time to get a beefy downpayment ready plus find a buyer for my ancient-but-perfectly-functional 1995 Avalon XLS. Honestly though, I can't imagine that I'll have to wait a year. Maybe I'm just being optimistic, but surely Toyota will see what a goldmine they have in this car and get some more lines running or something... if they don't capitalize on the wave of good press and popularity they will lose more sales than they already undoubtedly have.

05-23-2004, 06:54 PM	#7
PeterClothier Join Date: May 2004 Location: Southern California Posts: 6 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I bought my Prius at sticker price this past MOnday at Hollywood Toyota, after a five-month wait. It pays tp be patient.

05-23-2004, 07:04 PM	#8
slowpoke Join Date: May 2004 Posts: 48 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Supply and demand...it sucks and screws the consumer. I remember they were doing this with the P/T Cruiser. 2-3k above MSRP. Sux mang!

05-23-2004, 11:26 PM	#9
gwirtel Join Date: Mar 2004 Location: St. Louis, Mo Posts: 15 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I can understand not wanting to pay a markup, but I don't understand the idea that markup is wrong somehow. I will not pay markup because it puts the car into a price range I don't want to pay, but if after markup it was still the price I was comfortable with, I would pay it. How is dealer markup when demand is high any different than markdown when demand is low? When you buy a car do you just pay sticker because you want to pay MSRP? Or, if you can get it cheaper, do you try to do that? If you haggle with the dealer to get a lower price, then he is entitled to haggle to get a higher price. If you don't like the price, don't buy it.

05-24-2004, 12:25 AM	#10
snarfo Join Date: May 2004 Posts: 53 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Oh, I'm sure they had no problems selling it for 30 grand. However, since Toyota (as is my understanding) has a no-haggle clause of some sort with the Prius--- so you pay sticker price, there is enough markup there to be what i would consider 'fair'. From the dealer invoices I could find, my $26,000.00 Prius nets the dealership something like 2500 dollars. The margin on less-equipped packages is commensurately lower. If my income level was such that the extra 4 grand would have been irrelevant, no sweat. However, I work for a school district and nobody ever got rich working for a school system I still think a dealership telling me "we're going to bend you over and sock it to you lubeless because we can" is tantamount to consumer rape. Even after buying a car with that policy surely the buyer would be irritated by it... thus giving the dealership a black mark for future sales. It's a short-term gain while risking some long-term ill will. When I bought my Avalon my buying (and subsequent warranty) experience was so poor that I contacted Toyota HQ and the Better Business Bureau to get some satisfaction. I assure you that dealership will never get business from me, nor will they get business from anyone who knows me who I can warn in advance. Same principle applies, I think.