Why are Advertised Used Prius Prices Almost the Same as New?

[joe1347]

Surprisingly - or maybe not so surprisingly - there seems to be very few used Prius's for sale. A quick check of local dealer inventories (Maryland) turned up quite a few new Prius's available for sale at almost the same advertised price as most used 2005/2006 similarly optioned Prius's. Granted, dealers certainly will overcharge for a used car given the chance, but I'm amazed at the dearth of used Prius's on the market. I'm guessing with gas prices going up, few Prius owners are interested or willing to part with their cars and with the next gen Prius almost two years away, Prius trade-ins are also rare.

It certainly seems like buying new actually makes more sense than buying used in this case?

[qbee42]

<div class='quotetop'>QUOTE(joe1347 @ Jun 25 2007, 10:32 PM) [snapback]468009[/snapback]</div>

It certainly seems like buying new actually makes more sense than buying used in this case?
[/b]

Bingo! You've figured it out.

Tom

[daniel]

For the first couple of years, demand for Priuses far exceeded supply, and a few people were willing to pay large mark-ups over MSRP. With demand so high and supply so low, used Priuses could demand new-car prices. I imagine that set a kind of mentality, that Priuses were worth as much used as new, and owners, accustomed to that odd imbalance in the market, learned to believe that their cars did not depreciate. Thus the asking prices remained high.

There are so few used ones on the market, I am sure, because the Prius is such an excellent car (regardless of gas prices) that very few people are inclined to part with them. However, the abundance of new Priuses nowadays, means that nobody is likely to actually get those higher asking prices. A dealer with one used Prius on the lot might keep his asking price high, because he can afford to let it sit. But a private seller who really needs to sell will have to come down. Asking price is, after all, just that: what someone is asking.

I imagine everything will change when the next gen comes out. Enough people will upgrade that there will be more used '04-'08's on the market and prices will drop. But it remains an excellent car, so will likely hold its price well. Just not so near new-car levels.

[feivel]

Well, here's my story - Beltway Toyota - put one on their lot advertised at 13,475 - A certified 2005 in great condition, smart key and dimming mirrors, less than 2 years old, with 80k miles on it. I've been driving it for about 1500 miles so far, and love it. Got a warranty on it too. I bought it the day I found it online (hopped a train from Philly to DC, and drove back that night). As I see it, I've got 7 grand in my pocket that I wouldn't have if it'd bought new. Now, we'll see if I can get it to 200k miles.

My suggestion is to put a search on autotrader.com so it emails you as soon as something comes up that matches your requirements. Make the search picky enough that it only has one or two results - and when one DOES pop up, it's yours!

[tymothys]

I also just purchased a used 2003 Prius. What made mine so attractive, as it turned out was that my little beauty (and it is, it really is) was sitting on a chrysler lot...now how many people coming to buy a V6 or some such thing are looking for a cute little hybrid? Not many. So they had it for a bit, actually had on the window that it was worth 20,000, just a tad over kbb. They listed it, initially at kbb which was 17, then down to 15, then negotiated to 14. With 75,000 (with the gps i learned where the previous owner lived, so was definitely hwy miles-would have been fun to go their house..."hi, i just bought your old car!" I'm certain they had a brand new one sitting in their garage.), it will be great for some time and essentially saved me about 10grand or so...as a grad student that makes a huge difference.
Plus, i like the 2003 model better, the hatch is much more attractive.

[orracle]

<div class='quotetop'>QUOTE(Tymothys @ Jun 26 2007, 01:58 AM) [snapback]468149[/snapback]</div>

I also just purchased a used 2003 Prius. What made mine so attractive, as it turned out was that my little beauty (and it is, it really is) was sitting on a chrysler lot...now how many people coming to buy a V6 or some such thing are looking for a cute little hybrid? Not many. So they had it for a bit, actually had on the window that it was worth 20,000, just a tad over kbb. They listed it, initially at kbb which was 17, then down to 15, then negotiated to 14. With 75,000 (with the gps i learned where the previous owner lived, so was definitely hwy miles-would have been fun to go their house..."hi, i just bought your old car!" I'm certain they had a brand new one sitting in their garage.), it will be great for some time and essentially saved me about 10grand or so...as a grad student that makes a huge difference.
Plus, i like the 2003 model better, the hatch is much more attractive.
[/b]

I bought a used 2005 at a Pontiac dealer. The best used prices I saw were always at non Toyota dealers.

[ohershey]

I know that her in CA you can actually pay MORE for a used Prius. If it has the HOV lane stickers, which are currently no longer being issued, it will demand a premium.

[acdii]

There is an 05 on a Ford lot in Crystal Lake, it has an unusual deep burgundy metallic paint on it that catches my eye every time I pass it. It is the only one I have seen in that color.

[jhinton]

Back when we were looking in Nov 06 the supply of Prii was just starting to catch up with demand. The local Toyota dealer had 6 Prii, 4 new, 2 used. One used was a 2005 w/ 30K miles and the other was a 2001 w/ 75k miles. He wanted $24K for the 2005 and $18K for the 2001. Now the same dealer had a new 2007 for $100 more than the used 2005 AND you got the tax credit. So the new Prius was less than the used Prius! I asked them about this and the answer was the the used one was "certified" and came with a warranty to 150K miles on the hybrid features instead of the normal 100K. I said, "It"s a Toyota, it shouldn't break, your warranty is useless" He wasn't willing to budge at all so I left. The 2001 was still their when I moved in May.

I bought mine from a used car dealer down the road that specializes in high-end cars. He had it advertised at $24K like the dealer but when asked had a flat, no-haggle price of 20K for the same car, 2005 w/ 30K miles. I figured about $4K to 5K off new was about as good as I was going to get.