2004 Prius pricing vs future hybrid pricing.

[Eug]

Yes of course, the Prius is good advertising and I'm ignoring that for the time being, because I'm just saying that whatever the reasoning, it seems we may be getting a better deal than future hybrid purchasers.

As for profit, I have no idea what Toyota makes on their vehicles before it hits the dealer, but my dealer did say that for their own profit for a Corolla, they have something like $1700 to play with in terms of pricing and something like $3500 to play with for a 4Runner.

I'm not sure what "to play with" means, but it does suggest to me you can tack several hundred $ more onto those numbers for their true profit on their cars sold at retail. And if they're making as much on a Prius 2004 as they are on a Corolla, that would mean that Toyota is selling the base model Prius 2004 to the dealer for something like $18500 or less.

[sibtrag]

I know nothing about Toyota's economics.

But, it is one thing to say that you are making money on each car you sell (I.E. more revenue than costs of production), another to say that you are paying for the marketing & other fixed costs, and still another to make enough to return a profit on the large research & development expense up front.

I would take Toyota's profit claims to be just addressing the first of the list.

Of course, the CAFE standards do alter the picture a little bit, as each Prius sold allows the sale of more gas guzzlers on which there may be more profit.

[Frank Hudon]

Toyota makes a lot more electric forklifts than Prius's and a lot of the technology has been paid for by the FL side of the bussiness, more than a lot of people realize. On the FL side we've had A/C trucks for several years now and electric steering and stuff, so the developement costs are spread over a very big and diverse company.

[Danny]

Just a note to those who have been using the "Subject" line above when replying to a post - it will no longer show up as a part of your message, so please type everything in the body.

For new posts topics, obviously, use a subject.

[Frank Hudon]

Thanks Danny Just noticed that.

[tag]

Originally posted by Eug
...Whaddya think? Are we getting a super-deal with our 2004 Priuses?

Personally, I think it's a lot of car for the money. On the other hand, I believe a lot depends upon what happens in the future. As an example, I thought I got a great deal on my Navigator with a fairly hefty discount off MSRP plus 0% financing for 36 months. Now, not quite three years later, I think I got rather badly hosed considering the resale value of the thing (which I'll be dumping for an 04 Prius).

So, I'll have to reserve judgment about the 04 Prius being a "super-deal" until such time as I'm ready to sell or trade the car. If it turns out my $26k 04 Silver BC is worth, say, 10 grand with 36k miles in 2007, I won't be able to look back and say the deal was all that great.