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Old 08-06-2008, 10:17 AM   #1
mark1154
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Default Unsavory Car Dealers

Here's a little scenario about one of the Toyota Dealers in Maryland. We were very excited about purchasing a Prius. We were told that a good strategy would be to put deposits down at several dealerships and take the first Prius that came in. The waiting time in the Baltimore area was supposed to be 6-8 weeks or longer. We put (2) $500 deposits down at 2 dealerships and called several others to notify them we were serious buyers. While we waited patiently we got a call from one salesman who said he was getting a new Prius in in a few days and he could direct it right to us. This was only a week or so wait time. I told him we were interested but before we finished the conversation I asked him what the bottom-line price was. He gave me a price that was more than $2000 above the MSRP and told me his dealership was doing this because this was a "Premium" car. I asked him if this car was meant for someone else and was he willing to sell it to us for $2K more than MSRP. He hesitated and said that we seemed very anxious to buy a Prius and this is how he could make that happen.

I told him to get lost and wrote a letter to the dealership's new car manager about this rather questionable practice. A few days later I got a call from this same salesman who said that he thought he could do better on the price of the car. I told him I wouldn't buy a car from him if he quoted me a price under MSRP!!

Are they all like this? The dealership we finally got the car from used the MSRP sticker price.
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Old 08-06-2008, 10:49 AM   #2
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Default Re: Unsavory Car Dealers

Quote:
Originally Posted by mark1154 View Post
Here's a little scenario about one of the Toyota Dealers in Maryland. We were very excited about purchasing a Prius. We were told that a good strategy would be to put deposits down at several dealerships and take the first Prius that came in. The waiting time in the Baltimore area was supposed to be 6-8 weeks or longer. We put (2) $500 deposits down at 2 dealerships and called several others to notify them we were serious buyers. While we waited patiently we got a call from one salesman who said he was getting a new Prius in in a few days and he could direct it right to us. This was only a week or so wait time. I told him we were interested but before we finished the conversation I asked him what the bottom-line price was. He gave me a price that was more than $2000 above the MSRP and told me his dealership was doing this because this was a "Premium" car. I asked him if this car was meant for someone else and was he willing to sell it to us for $2K more than MSRP. He hesitated and said that we seemed very anxious to buy a Prius and this is how he could make that happen.

I told him to get lost and wrote a letter to the dealership's new car manager about this rather questionable practice. A few days later I got a call from this same salesman who said that he thought he could do better on the price of the car. I told him I wouldn't buy a car from him if he quoted me a price under MSRP!!

Are they all like this? The dealership we finally got the car from used the MSRP sticker price.
Yes a lot of dealerships in the maryland, virginia area are selling the prius about 2000 over msrp. They get away with it because of the demand, heck even used prius's at some dealerships are selling around the msrp of the new ones. If oil ever goes down to a acceptable level and everyone goes back to their old ways of wasting fuel, then the demand for the prius will drop, and with that demand the prices will drop.
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Old 08-06-2008, 11:07 AM   #3
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Default Re: Unsavory Car Dealers

Quote:
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Yes a lot of dealerships in the maryland, virginia area are selling the prius about 2000 over msrp. They get away with it because of the demand, heck even used prius's at some dealerships are selling around the msrp of the new ones. If oil ever goes down to a acceptable level and everyone goes back to their old ways of wasting fuel, then the demand for the prius will drop, and with that demand the prices will drop.
Similar stories in Ga.
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Old 08-06-2008, 11:19 AM   #4
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Default Re: Unsavory Car Dealers

From my experience of buying cars and looking into dealerships, many dealerships like to be really unspecific so you don't know what's coming. I guess I try to avoid this by asking really detailed questions, and if I don't get a specific answer, I will ask again and again until I do get an honest answer, and I always confirm everything (again) with the salesman before making a decision.

For example, a dealership here in Washington told me that they would sell me the Prius at the best price available when I first contacted them. (No mention of how great the price is). I emailed them back asking what the price would be. He told me that he sells the Prius at MSRP. (Still no mention of the price). So I emailed him back once again asking what the MSRP would be for my order, although it is already on Toyota.com. The real truth came out, as he said that his dealership orders all Priuses with all these extra accessories, like 3M rock chip protector and nitrogen in tires (wtf?), etc.

This adds $600 to the MSRP. I didn't want any of these extras and asked if I could just have a normal Prius without additions at MSRP. He said no. I asked again. He said that it was impossible. So yes, it was true that he sells the Prius at MSRP, but he never mentioned the add-on that could not be deleted with the purchase of the vehicle.

As you can see, I had to ask 3 questions before I got an actual honest answer. If he had given me a price at MSRP, I would confirm it again by asking: "no higher or lower, correct?"

After all that work (I contacted several dealerships in my area), I finally found a dealer in Seattle that gave me a great first-impression. I even negotiated them into giving us free tinting. I will definitely recommend this dealership later on on PriusChat if they (actually) deliver me a vehicle and promise their word of honoring me free tinting when it arrives.
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Old 08-06-2008, 11:46 AM   #5
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Default Re: Unsavory Car Dealers

Mark,
Most dealers are doing the add-on trick ($1000 extra mile, floor mats, etc often adding at least $2k). Some in Texas are selling new Prii on their used car lots at higher prices ($2k-$3k higher for basic cars). I get two or three emails a month from a few dealers ready to "move me up" if I move fast (and pay more). In addition to the used car zero mile trick, I see zero mile "lease returns" from the lease places on ebay.

Bottom line, supply and demand rules even at "MSRP" dealers. Last winter you could get a Prius of your choice off the lot with a discount and a federal tax break. Not today.
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Old 08-06-2008, 12:21 PM   #6
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Default Re: Unsavory Car Dealers

Quote:
Originally Posted by mark1154 View Post
I told him I wouldn't buy a car from him if he quoted me a price under MSRP!!.
I don't know, I'd have to consider that. I have high morals but a low income. Hmm
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Old 08-06-2008, 12:30 PM   #7
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Default Re: Unsavory Car Dealers

Quote:
Originally Posted by mark1154 View Post
Here's a little scenario about one of the Toyota Dealers in Maryland. We were very excited about purchasing a Prius. We were told that a good strategy would be to put deposits down at several dealerships and take the first Prius that came in. The waiting time in the Baltimore area was supposed to be 6-8 weeks or longer. We put (2) $500 deposits down at 2 dealerships and called several others to notify them we were serious buyers. While we waited patiently we got a call from one salesman who said he was getting a new Prius in in a few days and he could direct it right to us. This was only a week or so wait time. I told him we were interested but before we finished the conversation I asked him what the bottom-line price was. He gave me a price that was more than $2000 above the MSRP and told me his dealership was doing this because this was a "Premium" car. I asked him if this car was meant for someone else and was he willing to sell it to us for $2K more than MSRP. He hesitated and said that we seemed very anxious to buy a Prius and this is how he could make that happen.

I told him to get lost and wrote a letter to the dealership's new car manager about this rather questionable practice. A few days later I got a call from this same salesman who said that he thought he could do better on the price of the car. I told him I wouldn't buy a car from him if he quoted me a price under MSRP!!

Are they all like this? The dealership we finally got the car from used the MSRP sticker price.

You are not very good at negotiating. Never put any hard earned money down on an open ended deal. An "open ended" deal is one where the terms and conditions are not defined in writing. (Terms and conditions are things like all pricing items and expected delivery, colors, options, etc.)

Furthermore, in your opening line you state "We were very excited about purchasing a Prius." Never get emotionally involved and in a hurry in any business deal, because you will usually lose.

Keith
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Old 08-06-2008, 12:43 PM   #8
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abcdefgary: I agree with everything that you said. However, I would like to point out one thing that you may want to concider as after market. It is my understanding that the paint or painting process on the Prius is greener than on standard vehicles. It is not hard, as chip resistant, and combined with the sloping hood, the Prius is a "rock chip magnet", as I beleive that it was stated in another thread. The 3m protection and/or front hood deflector is highly recommended by many members and can be found in other threads. Both can be a DIY project. Totally agree about the dealer and the Nitrogen BS, but I'm planning to go with both a deflector and the 3M, since Atlanta, due to buget deficits, is not keeping it's interstates clean. It's a problem on regular paint let alone the Prius'. Just though I'd pass it on. Don't want to .
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Old 08-06-2008, 12:48 PM   #9
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Default Re: Unsavory Car Dealers

What's with the obsession with the MSRP? You people act as if it's based on something more than an arbitrary number some suit dreamed up at head office. Sorry, but if you are paying MSRP you're getting ripped off. It's not some magic number!

Get a couple grand below MSRP and you're doing OK.
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Old 08-06-2008, 01:12 PM   #10
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What's with the obsession with the MSRP? You people act as if it's based on something more than an arbitrary number some suit dreamed up at head office. Sorry, but if you are paying MSRP you're getting ripped off. It's not some magic number!

Get a couple grand below MSRP and you're doing OK.
First! You obiously have no idea of the currect Prius market. And if someone wants one and can afford one that's their decision.
Secondly! MSRP is just a reference point, for a certain configuration, that anyone anywhere can look up online, and in conversations or dealings, use it as a reference point, just like you did in your post, in the sentence that I highlighted. Many SUV's and non-hybrid gas guzzlers are going for well under MSRP. That's a reference point good to know if you're in the market for an SUV. You can deal. In the current Prius market, you can feel fairly comfortable, and stop shopping if you can find a deal @ MSRP w/o unwanted dealer add-ons. That's good to know if you're in that market.

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