The truth on "Eco-Nomic Savings Bonus Incentives"

cooljw · 04-10-2007, 01:48 PM

I think most everyone has made the mistaken assumption that the new $600-2,000 (depending on Package) incentives that Toyota announced with this Eco-Nomic Savings program are cash rebates. Although they sound like just that, read the announcement more carefully and/or visit your dealership and you'll see that the entire program is nothing more than a marketing gimmick.

For example, the "savings" is $2,000 on a Package #5. Ok great, where does the $2,000 savings show up then?

MSRP is $28,075
- ECO-Nomic Savings $2,000
= New "asking" MSRP of $26,075

So the ECO-Nomic Savings is nothing more than a marketing gimmick - a discount off the MSRP! What a joke! Since the tax credit tiered down Prius have been goign close to invoice or lower - not MSRP anymore! And of course, smart car buyers never negotiate from MSRP as a starting point, they use invoice if anything. I'm kinda upset that Toyota is playing these games.

iaowings · 04-10-2007, 02:02 PM

Dude all retail/sales companies depend on these gimmicks and games to get people on the lot or in the store. Every car manufacturers including the almighty and venerable Toyota have used and will continue to use them. Also the dealers can run their own add and charge whatever they want for a car including below or above msrp (manufacturer suggested retail price.) take note the suggested part. If you think Toyota wants to save you money think again because if they were really concerned about you saving money they would offer their cars at cost and believe me that would be nice. Anyone know what it cost to make a prius. I am sure it is a lot less than what they sell them for. Let me clarify what I mean by cost. No shipping and destination just what it cost them to get it built and off the assembly line and that is it.

MegansPrius · 04-10-2007, 02:03 PM

<div class='quotetop'>QUOTE(cooljw @ Apr 10 2007, 01:48 PM) [snapback]420929[/snapback]</div>

Quote:

I think most everyone has made the mistaken assumption that the new $600-2,000 (depending on Package) incentives that Toyota announced with this Eco-Nomic Savings program are cash rebates. Although they sound like just that, read the announcement more carefully and/or visit your dealership and you'll see that the entire program is nothing more than a marketing gimmick.

For example, the "savings" is $2,000 on a Package #5. Ok great, where does the $2,000 savings show up then?

MSRP is $28,075
- ECO-Nomic Savings $2,000
= New "asking" MSRP of $26,075

So the ECO-Nomic Savings is nothing more than a marketing gimmick - a discount off the MSRP! What a joke! Since the tax credit tiered down Prius have been goign close to invoice or lower - not MSRP anymore! And of course, smart car buyers never negotiate from MSRP as a starting point, they use invoice if anything. I'm kinda upset that Toyota is playing these games.

[/b]

Well, until December of 2006 you generally couldn't get a Prius for Invoice (there were too few available), so I don't see any fault in Toyota advertising the discount. It's actually relevant for once. Are they not supposed to try to sell the car like other automakers do now that they finally have enough to meet demand?

JimboK · 04-10-2007, 02:53 PM

I agree with Scott. I gladly would have accepted a $2000 marketing gimmick when I bought mine in 2005.

cooljw · 04-10-2007, 02:59 PM

<div class='quotetop'>QUOTE(JimboK @ Apr 10 2007, 11:53 AM) [snapback]420974[/snapback]</div>

Quote:

I agree with Scott. I gladly would have accepted a $2000 marketing gimmick when I bought mine in 2005.
[/b]

Yes of course, back then MSRP was the standard so it wouldn't have been a marketing gimmick.

My whole point is that I'll be purchasing a Prius this weekend and I can basically ignore this Toyota "ECO-nomic Incentive." Some buyer incentive.

iaowings · 04-10-2007, 03:04 PM

<div class='quotetop'>QUOTE(cooljw @ Apr 10 2007, 03:59 PM) [snapback]420978[/snapback]</div>

Quote:

Yes of course, back then MSRP was the standard so it wouldn't have been a marketing gimmick.

My whole point is that I'll be purchasing a Prius this weekend and I can basically ignore this Toyota "ECO-nomic Incentive." Some buyer incentive.
[/b]

oh well yeah if you can get it even cheaper go for it. some people will just go in a pay what they are asking. Obviously to you and many people that is dumb. I say go for the absolute lowest price you can and then get the 2k off in addition to that.

**Tideland Prius** · 04-10-2007, 03:35 PM

Good for you if you can get it in invoice cause some of us can't. I'd glady take the $2,000 (hell it's $4k up here b/c of gov't rebates).

coonbutt · 04-10-2007, 04:26 PM

Yep, it is a gimmic.

The dealer that I bought at on March 31 was offering $2,500 off of MSRP. I paid right at invoice, free mats and soundproofing, no gimmic from Toyota needed. The tax credit was higher then too. Do they still have the 0% for two years? If not, last month was much better than the current "Eco-nomic incentive".

zqfmbg · 04-10-2007, 05:00 PM

Who said dealers can't charge what they want to charge?

I bought my package 5 at $25,300 2 months ago. Two other dealers would not go below $25,800. Are the other two scum-sucking thieves just because of that? What about everyone who was charging MSRP last year?

For that matter, I saw an invoice at a restaurant supply store stating that the plates that they were charging $8.40 for cost them $3. Do they deserve to be labelled as rip-off artists for this?

Some buyers (who I do not think deserve to be called "dumb") don't like haggling or bargaining. They'll save some cash. Others do like haggling, and anyone who has experience in bargaining knows you leave yourself some room in the beginning.

(Yes, I have complained about Toyota Sunnyvale doing this sort of thing in their ads, but seeing someone else say the same thing made me realize how absurd it is.)

brick · 04-10-2007, 05:24 PM

Just part of the game. All the better if the asking price is lowered by $2,000 because that just means that you should start bargaining that much farther below invoice. I bought mine in December and paid about a grand below the asking price at the time (so MSRP minus about a grand, wich is something like a grand above invoice on a Package 2) because that's how much I had decided I was going to pay for that car. A better negotiator probably could have gone in and had it for another $500 off. Or had I been willing to wait another couple of months I might have even had it for below invoice.

Point is, the numbers are meaningless. Play it right and you can have the car for the lowest possible number that the dealer is truly willing to let it go for. Go through the internet managers, haggle for three hours...whatever. Just don't get mad at the incentives because they work in your favor. You can use the shrinking tax credit to drive down the numbers, too. Find a dealer with 20 of them on the lot and have at it.

04-10-2007, 01:48 PM	#1
cooljw Join Date: Nov 2005 Location: San Diego, CA Posts: 42 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I think most everyone has made the mistaken assumption that the new $600-2,000 (depending on Package) incentives that Toyota announced with this Eco-Nomic Savings program are cash rebates. Although they sound like just that, read the announcement more carefully and/or visit your dealership and you'll see that the entire program is nothing more than a marketing gimmick. For example, the "savings" is $2,000 on a Package #5. Ok great, where does the $2,000 savings show up then? MSRP is $28,075 - ECO-Nomic Savings $2,000 = New "asking" MSRP of $26,075 So the ECO-Nomic Savings is nothing more than a marketing gimmick - a discount off the MSRP! What a joke! Since the tax credit tiered down Prius have been goign close to invoice or lower - not MSRP anymore! And of course, smart car buyers never negotiate from MSRP as a starting point, they use invoice if anything. I'm kinda upset that Toyota is playing these games. __________________

04-10-2007, 02:02 PM	#2
iaowings Join Date: May 2006 Posts: 450 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Dude all retail/sales companies depend on these gimmicks and games to get people on the lot or in the store. Every car manufacturers including the almighty and venerable Toyota have used and will continue to use them. Also the dealers can run their own add and charge whatever they want for a car including below or above msrp (manufacturer suggested retail price.) take note the suggested part. If you think Toyota wants to save you money think again because if they were really concerned about you saving money they would offer their cars at cost and believe me that would be nice. Anyone know what it cost to make a prius. I am sure it is a lot less than what they sell them for. Let me clarify what I mean by cost. No shipping and destination just what it cost them to get it built and off the assembly line and that is it. __________________ "If a man does his best, what else is there?" General George S. Patton "We're going to take things away from you on behalf of the common good." Hillary Clinton

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04-10-2007, 02:53 PM	#4
JimboK One owner, low mileage Join Date: May 2006 Location: Chesterfield, VA Posts: 1,995 My Car: 2005 Prius Package: #2 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 3	I agree with Scott. I gladly would have accepted a $2000 marketing gimmick when I bought mine in 2005.

04-10-2007, 03:35 PM	#7
Tideland Prius Super Moderator Join Date: Oct 2004 Location: Canada Posts: 13,909 My Car: 2005 Prius Package: B Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 11	Good for you if you can get it in invoice cause some of us can't. I'd glady take the $2,000 (hell it's $4k up here b/c of gov't rebates).

04-10-2007, 04:26 PM	#8
coonbutt Member Join Date: Mar 2007 Posts: 40 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Yep, it is a gimmic. The dealer that I bought at on March 31 was offering $2,500 off of MSRP. I paid right at invoice, free mats and soundproofing, no gimmic from Toyota needed. The tax credit was higher then too. Do they still have the 0% for two years? If not, last month was much better than the current "Eco-nomic incentive".

04-10-2007, 05:00 PM	#9
zqfmbg Senior Member Join Date: Oct 2005 Posts: 139 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Who said dealers can't charge what they want to charge? I bought my package 5 at $25,300 2 months ago. Two other dealers would not go below $25,800. Are the other two scum-sucking thieves just because of that? What about everyone who was charging MSRP last year? For that matter, I saw an invoice at a restaurant supply store stating that the plates that they were charging $8.40 for cost them $3. Do they deserve to be labelled as rip-off artists for this? Some buyers (who I do not think deserve to be called "dumb") don't like haggling or bargaining. They'll save some cash. Others do like haggling, and anyone who has experience in bargaining knows you leave yourself some room in the beginning. (Yes, I have complained about Toyota Sunnyvale doing this sort of thing in their ads, but seeing someone else say the same thing made me realize how absurd it is.)

04-10-2007, 05:24 PM	#10
brick Senior Member Join Date: Dec 2006 Location: Columbia, SC Posts: 698 My Car: 2007 Prius Package: #2 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Just part of the game. All the better if the asking price is lowered by $2,000 because that just means that you should start bargaining that much farther below invoice. I bought mine in December and paid about a grand below the asking price at the time (so MSRP minus about a grand, wich is something like a grand above invoice on a Package 2) because that's how much I had decided I was going to pay for that car. A better negotiator probably could have gone in and had it for another $500 off. Or had I been willing to wait another couple of months I might have even had it for below invoice. Point is, the numbers are meaningless. Play it right and you can have the car for the lowest possible number that the dealer is truly willing to let it go for. Go through the internet managers, haggle for three hours...whatever. Just don't get mad at the incentives because they work in your favor. You can use the shrinking tax credit to drive down the numbers, too. Find a dealer with 20 of them on the lot and have at it.