Trade 2010 for 2011 $2000 Out the Door?

My Dealer called me today and asked if I would be interested in a new 2011 for my 2010 and $2000 out the door? I have NEVER had something like this happen to me. I have a white series II 2010 and it will have 12,000 miles on it by the time the 2011 white one gets here (I didn't want the color of the one he was calling about). I will go up one model year and start out with 0 miles for $2000. This sounds like a pretty good deal to me. Am I missing something? Why would they do this? It almost sounds too good to be true. Any thoughts, ideas? Has this happened to anyone else?

Prices for these are screwed right now. But won't you have to pay taxes on this new one? Is your TOTAL COST really only $2000? I am betting extra crap will be rolled in one way or the other. If not, then I'd probably do it. It's basically a wash, he's saying you paid $.15/mile for your 2010. The 2011 is really no better but if you like the car it couldn't hurt.

Why trade in a 2010 for a 2011????? It's the same car with no visible changes. (I'm sure that there are a few manufacturing changes, but nothing visible to the owner.)

If you have $2000 just sitting in your pocket and you need to get rid of it, donate it to your favorite charity or to our poor federal government....

Keith

If you're getting the same car as you have now, only a 2011 vs. 2010, and the total cost (including tax, registration, etc.) is $2,000, I'd say that's a good deal. Down the line when you decide to sell the car, the 1 model year newer car w/ 12K fewer miles should be worth far greater than $2,000 more.

As to why the dealer would do this, they get to sell a new car, and get a used Prius which they can resell for a profit. Apparently used cars, and particularly sought-after ones like a late model year Prius, are becoming a valuable commodity to car dealers, as folks in this difficult economy who can't afford a new car look for used cars.

sounds good to me. especially if you are having all the 2010 prolems that others are having.

This 2011 is radioactive and they need to get it off the lot.

naughty.

It's a dealer scam. Only they win.

Concur.
$2K...plus fees and TTL to reset the odometer to almost zero and bump the model year up by a year?
Sounds expensive...and I have my doubts that the dealer will honor the $2K quote to begin with.
If Priuses are flying out of the dealerships and there's such a huge shortage of these cars....why is your dealer cold calling you to get you to come in and buy a car that's in such high demand????

I smell some un-refrigerated fish...

How aout sales tax on $23k. That can be another $2k.

According to the salesman it's $2,000 OUT THE DOOR. I'm going to see if it's legit. If it is, I'll take it.

$2,000 OTD, if legit
I would take it

At least in Florida, you only pay sales tax on the difference between your trade and the new car. If they're somehow valuing your car close to the 2011 value, there would be almost no tax liability. I just checked the greater Orlando area and found almost no Prii available today. They may be in a situation to sell your car for MSRP of a new car since it's available and you're effectively paying the dealer a market equivalency of $2k on the 2011 so a new buyer can have your 2010 for the 2011 MSRP.

At any rate, it sounds like a good deal to me.

It still doesn't add up.

So what's your plan, you're going to keep doing this every year? Lets say you did and they refresh the model for Gen 4 in 5 years. You'll have paid $10000 + the original cost of your 2010 Gen III and have only 1 new car to show for it, rather than your 2010 and a new car.

Your 2010 Prius w/ all its thousands of miles will still be worth more than $10000 in 5 years. It's a rip off and you dig yourself into a deeper and deeper hole. Just be happy with what you have.

This would only make sense if you were trading an 09 for a 2010. Paying 2000 for the exact same car is idiotic. Even if you came out even when it comes time to sell, you still wasted an entire afternoon at the dealership declining extended warranties. Buy $2000 worth of silver. It's a much better investment strategy.

Commodities are tanking. Prius is a much better investment right now.

The sales tax issue may vary State to State. Here in AZ, the sales tax would only be on the difference between the sales price and the trade. 9% of $2000 would cost $180.

If you like the car and plan on holding onto it for a while I'd strongly consider it as long as the dealer is not playing fast and loose with the details.

As stated in an earlier post this means that your $2000 would work out to about .17 a mile. If you take the government standard mileage rate for 2011 of .51 you have .22 of depreciation alone. Keep in mind that is an average rate and a car typically depreciates more in the first year which would make the number higher and that this number is also an aggregate for all cars out there - it would be applied to a Prius and a Porsche alike which would lower it in the case of a Prius - I'd call it as wash and keep the .22 per mile figure. Add in a few cents for wear and tear items - tires, brakes, various fluid changes (coolant, transaxle, etc) that you have used. So - you would be looking at about .25 a mile "cost" for the miles that you have driven so if you did this you would be coming out ahead a bit - by my back of the envelope calculations about $840.

I understand wanting to do this. In a way, I did this. I could have looked for a 2010, but I chose to go with a 2011, playing more - 2.9% financing in lieu of 0%. The year does affect the trade in value, more if you don't tend to keep a car for a long time. And like the OP said, this would make it possible to get features not purchased the first time. I don't think the OP is planning to do this every year.