Is MSRP still a good deal?

I think the market is softening. Large volume dealers are starting to come down on the price. Just come armed with facts (e.g., posts on this site) and information about the local market (e.g. watch the dealers inventory on their websites) and you can come in below MSRP.

For example, there are 3 loaded cars on an Buford, GA Toyota dealers lot that have been there for many weeks. They are waiting for some sucker to come in and pay $2K over MSRP, but I bet if I wanted exactly those options and colors, I could get them well below MSRP this afternoon. The cars have been sitting there, and the dealer needs to move them before getting many more in.

In my on-line and in-person foray into this market, I walked away from lots of folks trying to sell me this car. A little walking away and silence on your part is going to save you some dollars.

 

I just purchased a car in Souther California for $800 off MSRP. It is a package 6, no other extra's except mats, no trade-in, no dealer financing. After the initial order, it only took one week to receive. Other dealers that I'd contacted before I found this one wanted over MSRP or were at MSRP. However, a few days after I'd obtained my car, a few of the other dealers called, finally willing to negotiate.

My dealer was very easy to work with. Didnt feed me any of the lines about how "hot" the car is, how other dealers charge thousands over MSRP, how dealers willing to negotiate below MSRP are just scamming me. My advice is to find a dealer you feel comfortable with. My husband has changed his mind about car salespersons and car buying after this experience.

 

I confess I reluctantly (but imo, strategically) accepted to pay MSRP - 2 weeks ago - without much challenge.

I wanted (and waited 2 months for) an exact pkg model (#4), in super white, and fresh off the boat (not driven/swapped in from 3 towns over or with 40 miles worth of previous test-drives, etc.) I also gave specific requirements for the leather install ordered, and to have my wheels changed out with 17" by the dealership as *courtesy*.

I also wanted to communicate, in dollars too, that I wanted to start a hopefully long and mutual dealer-customer relationship which I respected and would reward in kind.

In retrospect, I could have should have called the 2 other area dealerships and played them all off for my ordered car and maybe saved 300 bucks or so.

But then maybe I'm satisfied thus far with the service and relationship too?

Of course, if the car was/is sitting on the lot requiring a weekly wash et al, by all means exercise your leverage.

 

FYI, I just filled out the Buyer's Offer Spreadsheet over on carbuyingtips.com for my new prius coming in next week. I used data on list / invoice prices from Intellichoice.com.

According to the spreadsheet, even with my $500 below MSRP, I am paying about a 8% premium (about $2200) over what I probably could have negotiated the car for in a more even market.

Now, I did load the car up with some of the more profitable options (package 6, leather, dvd), so my premium of 8% is on the high side.

According the the spreadsheet, someone buying just a Prius and Package #4, and paying MSRP is going to be paying about 6% premium (about $1250) over what they would spend in a more even market (assuming they are good negotiator).

Note: edited to correct some of the % figures.

 

I paid MSRP less than a month ago, but I did hear (although not personally find...) deals around $1K off, just not within 100 miles of the Bay Area.
To save money, buy the warranty and service contract through a Prius forum Web site ...
I did get some accessories at "cost" (whatever that means) and some add-ons thrown in, all up saving maybe $250 ...

 

HYACK, you have excellent taste in cars and colors. We paid MSRP with all-weather floormats thrown in. We're very satisfied. Frankly I think the Prius is underpriced. This is not a "cookie-cutter" car. There's a reason why the EU selected the Prius "car of the year" for '05. As Motor Trend said last year: "There's the Prius; and then there's every other car". We'll watch for your postings.

 

At this time I think MSRP is the right price. While some parts of the country, mainly states close to the POI have some surplus. Many places, including South Dakota, still have waiting lists of 2-5 months. So until more areas have no or very little waiting times, I think MSRP is about the right price.

 

Hello from New Hampshire! Well, I like to think that I did my homework prior to purchasing my car (6/8/05).

That said I was certain, based upon everything I had read online, in print, and had heard from other buyers and yes, the salespeople that MSRP about what I should expect to pay. Directed, personal inquiries to 14 dealerships in New England yielded plenty of offers to reserve a prius at MSRP for delivery 30-60 days from reservation. No one wanted over MSRP, and only my local dealer offered a token $500 under MSRP.

I was all set to do the deal, and took a last ditch look at a dealer in Gorham, NH...way up there...and found the car I had spec'd on the lot. I bought it (no trade) for well under $1000 off MSRP.

I think the devil is in the details though...the car was a pkg. #6, and the dealership is smack in the heart of 4WD Truck territory...so the demand wasn't there. The Prius was a novelity that they were having trouble moving (my opinion) and hence they treated it like a "normal" sale. ...my 2 cents worth.... Eric.

 

Supply and Demand. Yes the supply has increased but not enough to flood the market to affect the dealers. Also they charge what the market will support. When people get tired of paying MSRP and the car sits on the lot for 6 months they will drop prices to move it. They are not worried about it until it goes over a year then they have to pay taxes on it.

 

And don't forget the pure profit some dealerships tack on as "documentation fees." In the SE, Toyota dealerships typically tack on $399 to $599 for 0 value in return. Your looking at another 2% profit with this alone if you don't get them to take it off or offer you an offset credit...<div class='quotetop'>QUOTE(jandmayra\";p=\"102901)</div>

 

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I've bought 5 new cars and never once paid a "dealer handling fee" or "doc fee" or whatever they call the fee that's pre-printed on the form.

I get to the agreed upon price and then get the dealer to drop the fee. If they don't, I walk. In some cases, I've agreed to an accounting trick where they will further offset my agreed-upon price by the fee and then add it back in on the purchase order, but the net is the same.

Yes, the dealer does some paperwork for the sale, but nothing unique - it's all part of the cost of doing business, like the electric bill and advertising. When pushed, I've always said that I'll be glad to pay the fee if they will pay a portion of my costs to operate the car. Funny how not one dealer has ever agreed to that deal.

Is the Prius still a good deal at M.S.R.P.? I think so, and with oil around $60 a barrel and gas expected to rise to $2.60+ on average later this summer, some of what may seem to be an excess supply now will dry up.

Given that the federal deduction is scheduled to get cut next year and the 2006 MY cars coming out very late this year, 2005 sales should still be strong enough where dealers aren't going to see Prius cars sit for very long.

 

I took delivery of Silver with BC package #6 in May 2005. It had 2 miles on odometer. I have put 3,550 miles on it already and get smiley and so tickled when I fill up and get change back from $20 bill.

I checked out 6 Dealers in SF Bay area. Found 3 dealers wanting MSRP, 1 dealer with 2 cars in Stock for immediate delivery, willing to go $250 under MSRP and another 2 dealers offering $700-750 below with 1 month wait. I ordered Silver with #6 and it was delivered in exactly 28 days.

In all cases I met with each dealers Fleet or Internet Manager.

Happy Shopping, 1oakprius

 

Check your local state laws for what they limit "documentation fees" to. iirc, they're limited to $9 here in CA.

 

In regards to the subject matter at hand, it's really relative to your area and how many cars allocated. On some of our cars, the lightly equipped ones, I still get MSRP but when there is an overabundance of the package 6 cars (BC) then I can discount off the MSRP with greater ease. The more cars and on-ground stock, the better off YOU are. :>

Dianne
http://carsontoyota.com/html/special.html

Southern CA

 

I just closed on a black '05 pkg 6, leather, mats, muds, cargo net for $750 over dealers invoice. Yes I had him fax me the invoice. That said, SET charges exhuberant fees in the invoice. Oh well, I think I got a good deal.

I forgot to add the car was on the lot and it was the last day of June. Supposedly no one wanted a high ticket Prius so I got a decent discount. I also bought a fully loaded Sienna from them in Dec '04.

 

I read where many are paying MSRP but this evening I turned down MSRP minus $!,300 on a 2005 Super White with Option 6 and floor/cargo mats. I hate it when they told me one thing on the phone and then the price when up when I got to the dealer. So, I walked out and said that I wasn't happy and would let them know. Now, I'm in control, I hope!

Hope I'm not crossing any lines as this is my first post but MSRP is $26,766 and they originally gave me a price of $27,074 with tax/license. I'll have to see what they'll say tomorrow or later. How does one find an Invoice cost?