1. Attachments are working again! Check out this thread for more details and to report any other bugs.

Do they want us to think there is a shortage?

Discussion in 'Gen 2 Prius Main Forum' started by Springtime, Jan 2, 2006.

  1. Springtime

    Springtime Member

    Joined:
    Nov 24, 2005
    158
    4
    0
    Location:
    Eastern PA
    I just picked up my new 2005 Silver pkg#6. The salesperson spent 2 hours going over all the buttons until I was completely comfortable with driving the car home. I am very satisfied in taking the 2005 because I was able to get NAV and get it well below MSRP. The 2006 with NAV was just too far out of my price range.

    One thing I noticed immediately was that this car had 220 miles on it and the inspection sticker was Oct 2005. So, this car has been available for sale for over two months! The car was originally delivered to a dealer in Harrisburg (stated on the window sticker) and was driven 200 miles to dealer X (20 miles from me). Dealer X had told me it was available at $27890 and would not be discounted in 2006. I think they had added the trim guards around the doors and wheels to come up with that price. My local dealer swapped for the car ( accounting for the additional 20 miles) and sold it to me for for just over $26K.

    I don't think there is a shortage of cars on the East coast if this sat on some dealer's lot for two months! Dealers have gotten in the habit of selling these cars at MSRP+ and my local dealer got the sale because he was willing to go below MSRP.

    I think great deals can be had on the left over 2005's if you can get your dealer to realize they will loose the sale if they are not willing to go below MSRP. My dealer was even willing to to cut the price on a 2006 pkg #6 by $350 had I wanted a 2006.

    If you are flexible regarding color I think that there are dealers out there who will sell below MSRP to get your business. We have been brainwashed to think that we are getting a bargin when the dealer is nice enough to sell at MSRP. And some dealers are trying to convince us that there are none out there to be had!

    My dealer has 9 Prius in stock. (Seven 2006 and two 2005.) Three were picked up today. There are several other Toyota dealers within a 30 mile radius of me and according to their online inventory they all have 2005's and 2006's sitting on their lots! It is to the dealer's advantage to let us believe there is a shortage because we don't even attempt to negotiate below MSRP.

    Before you agree on a price let your dealer know you will be shopping other dealers in the area. If they want your business they may be willing to lower their price.

    Springtime
     
  2. Jack 06

    Jack 06 New Member

    Joined:
    Oct 13, 2005
    2,556
    0
    0
    Location:
    Winters, CA: Prius capital of US. 30 miles W of S
    I have a nasty caution flag to throw your way:

    Did you by chance buy a TRAC car? If so, it's not eligible for the tax credit.

    TRAC cars are BOUGHT in the name of some dealers to be used as rentals, demos and sometimes for the personal use of their management staff. That is, they are REGISTERED in the name of the dealer ("put into service" to IRS). Dealers are committed not to sell them for at least 3 months, then may sell them as USED cars.

    I doubt your is a TRAC (Toyota Rental something something) since it has only 220 miles. My first Prius was a TRAC, and they usually accumulate 2K-12K mi. before being sold. But the time frame (Oct.) makes it suspicious.

    Chances are it was simply a non-TRAC demo that wasn't demo'd very much.

    As for your main question, it's speculative. We all have to sit back and watch what happens with dealer inventories the next two months. How many of those Priuses were "reserved"? How many deals fell through? How many were "ordered" by people on multiple lists? We'll see what's left on the lots, say, Feb. 1.
     
  3. galaxee

    galaxee mostly benevolent

    Joined:
    Mar 14, 2005
    9,810
    466
    0
    Location:
    MD
    Vehicle:
    2005 Prius
    still a shortage over here. the only time prii have spent any time sitting on the lot was for the week or so before new year's... people waiting for the 06 credit to take effect.

    with that one exclusion, the rest of the time they hardly have time to get them off the truck and through detail before they're gone!
     
  4. cdavid

    cdavid Member

    Joined:
    Dec 16, 2005
    142
    1
    0
    Location:
    North Carolina
    Will you post some of the dealerships in PA that have the cars. I'd like to check their inventory or call some of them to see if they have a car I'm interested in. I'll have to drive 9 hours north to get it though.
     
  5. Springtime

    Springtime Member

    Joined:
    Nov 24, 2005
    158
    4
    0
    Location:
    Eastern PA
    No, it is definately a new car and is stated as such on the paperwork. The information must be listed on the agreement and the box for new has been checked off. The back of the car title shows where it had been transferred from the Harrisburg PA dealer to Dealer X and then from dealer X to my local dealer. The mileage is correct for the drive from Harrisburg to dealer X and then to my local dealer.

    This car had been sitting on dealer X's lot since early December when I first started looking for a deal on a 2005. They had two and would not consider selling the 2005's below MSRP. I think they may still have the other one sitting on their lot!

    My local dealer still has a 2005 black pkg #4 sitting on his lot that he has had for a month - I will be interested in seeing how many of these cars are still listed on their online inventory in the next few weeks.

    I think there is definately less demand and more supply in the PA area.

    Springtime
     
  6. Jack 06

    Jack 06 New Member

    Joined:
    Oct 13, 2005
    2,556
    0
    0
    Location:
    Winters, CA: Prius capital of US. 30 miles W of S
    Glad to hear that. Now here's another curveball:

    I learned the hard way about alleged "inventories" of Priuses shown on dealers' individual websites. In at least some regions, you'll see almost identical inventories
    listed a several dealers. Turns out that's because those dealers are drawing from a "pool" of cars, some---or all--or which may not even be on their lot!

    I saw this practice particularly in Texas.
     
  7. haynesj

    haynesj New Member

    Joined:
    Dec 1, 2005
    3
    0
    0

    Lancaster toyota / East Petersburg Pa. Has two 2005's and seven 2006's as of this morning my salesman is Eric Riley.
     
  8. tessar

    tessar Member

    Joined:
    Sep 27, 2005
    103
    1
    0
    Location:
    Silicon Vallley, CA
    Vehicle:
    2006 Prius
    I picked up my 2006 on Dec. 4 after a ten-week wait (12 weeks was the estimate in late Sept.). The direct sales manager said that the waiting list had grown to 20-24 weeks. That sounds like a shortage to me.

    Price is determined by supply and demand. It's one of the first things you learn in a college course in Economics. MSRP is only a retail price suggested by the manufacturer. A dealer can sell for anything above the internal cost (and sometimes for less given the right circumstances; see below).

    As for buying a car at the end of the model year, you should pay much less than the price at the beginning of a model year. Basically, you incur a whole year's depreciation as soon as you drive off the lot. My wife and I bought a 2003 BMW 325i at the end of 2003 for $2000 below dealer invoice (due to dealer incentives from the manufacturer). You can't do that well with a Prius, but your price should be substantially lower than the going price earlier in the model year.
     
  9. jacaufie

    jacaufie New Member

    Joined:
    Dec 27, 2005
    104
    1
    0
    Location:
    Hillsboro, Oregon
    Vehicle:
    2006 Prius
    The dealer who just sold me 2006 Prius said that the average time for a Prius to remain on a dealers lot is 20 hours.

    My car came in the afternoon of 12/30, I heard about it from an Edmunds.com query the morning of 12/31 and contracted to buy it at 11:30AM. The other car that arrived in the same shipment was gone by then, too (an inter-dealer trade, he said).

    Sounds like tight supply to me.
     
  10. Springtime

    Springtime Member

    Joined:
    Nov 24, 2005
    158
    4
    0
    Location:
    Eastern PA
    David,

    Do a search on the following dealers ( all located in Eastern PA) Diehl Toyota in York PA, Conicelli Toyota in both Conshohocken and Springfield, New Holland Toyota and Del Toyota in Thorndale.

    Del Toyota is where I got my car. He actually swapped with a dealer who I knew had the car I wanted but would not go below MSRP for an 05. Del sold me the car and at a substantial discount off of MSRP.

    There are several other dealers in the area that do not have their inventory on line, but, a dealer like Del will check out all these dealers as well and if they can find the car you want they will swap for it. So even if a dealer does not have the exact car you want listed online - he may still be able to get one for you.

    PA dealers seem to have some left over 05's (mostly pkg #4 and #6) as well as lots of 06's in Pkg #2 and #6 and a few in #7 and #8.

    Hope that helps.

    Springtime
     
  11. DaveinOlyWA

    DaveinOlyWA 3rd Time was Solariffic!!

    Joined:
    Apr 13, 2004
    15,140
    611
    0
    Location:
    South Puget Sound, WA
    Vehicle:
    2013 Nissan LEAF
    Model:
    Persona
    oops
     
  12. Marlin

    Marlin New Member

    Joined:
    Jun 20, 2005
    1,407
    10
    0
    Location:
    Bucks County, PA
    Vehicle:
    2005 Prius
    While Harrisburg is the state capital, it's not exactly a huge population center. Certainly not if you compare it to Philly or Pittsburg. It would not surprise me that there would be many Priuses sititng on dealer lots in more rural areas where the demand is not high.
     
  13. justincmd

    justincmd New Member

    Joined:
    Oct 22, 2005
    3
    0
    0
    I would have to agree with the starter of this post that in the south east there are lots of Prii to be had. I posted a comment on here about 2 months ago on how I was so excited to buy a Prius, but when I got to the dealer the salesmen would not negotiate with me and told me if I did not want to pay $2500 over sticker that I should just leave. I am very disappointed with the dealerships and their price gouging. The same dealership that I went to 2 months ago to buy a Prius has 8 of them sitting on the lot now and had 5 sitting there when I went to buy mine. There is a strong demand in some regions of the country - I will agree to that, but here in the south east the "good ole boys" like their trucks and moms like their suburbans. I was ready to buy 2 months ago, but the salesmen turned me away. Well long story short I went to a Mazda dealership and bought an RX8 for invoice and got $2500 off in incentives. I LOVE MY RX8! I wanted a unique car and when Gene Reed Toyota said no and they would not even work with me, I went with Mazda and the RX8 (it is also very unique). I will never pay over MSRP (it is supposed to be the highest dollar amount you should have to pay for a vehicle), no matter if it is hot or not.

    Gene Reed Toyota - http://www.genereedtoyota.com/New-Inventory.aspx
    North Charleston, SC - Rude salesmen, I guess they were just doing their job?

    Congratulations if you got one for less than MSRP; you are a very privileged few. If you are looking for a unique car check out the RX8 - Yea I know it is a 1.3L gas guzzler, but I have had alot more fun in it than I would have ever had in a prius ;)

    - Justin
     
  14. frederic Berger

    frederic Berger New Member

    Joined:
    Jan 2, 2006
    6
    0
    0
    Location:
    Northern Virginia, USA
    Maybe I was just lucky, but I selected mine one day and had it the next day!
    Here's how I got my 2006 Red Barcelona this week:

    1. Logged into Costco.com on Monday 1/2/2006. Selected the Prius
    2. Got an e-mail from Costco with confirmation number, salesman name and dealership
    3. Drove to dealership (5 minutes), asked for my Costco price ($500 below MSRP)
    4. Picked a car, made a downpayment to reserve it.
    5. On Tuesday the dealership called and said they had found an identical car locally so the deal could be closed during Toyota fiscal 05. By the end of the day the car was mine.

    So I did not have to wait more than a day, got $500 off MSRP and exactly the car I wanted with package #6 and red exterior.

    I love this car :D
     
  15. cooljw

    cooljw Member

    Joined:
    Nov 26, 2005
    183
    46
    0
    Location:
    San Diego, CA
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Advanced
    Yes it is in a dealer's nature to make us think there is scarcity of Prius supply. Based on my recent observations, I think the supply-demand equation is quickly levelling out, and soon Prius will be selling below MSRP like other cars.

    I'm in San Diego, some dealerships are still running a waiting list here, while others are not. To me that's the first signal that supply is catching up to demand. Also, my local dealer had 2005s going at $2k below MSRP in November, and had a few unsold 2006s on the lot just before Christmas.

    I have also seen tons of Prius on the roads here lately. Excess demand for Prius is not infinite, eventually it will be met. I'm sure the new Civic Hybrid has also detracted some demand from the Prius.
     
  16. DaveinOlyWA

    DaveinOlyWA 3rd Time was Solariffic!!

    Joined:
    Apr 13, 2004
    15,140
    611
    0
    Location:
    South Puget Sound, WA
    Vehicle:
    2013 Nissan LEAF
    Model:
    Persona
    now that the tax credit is in full swing, i think you will be wrong. besides, right now, only a few selected areas of the country has anything remotely resembling a semi-adequate supply.
     
  17. TidelandTravis

    TidelandTravis New Member

    Joined:
    Nov 16, 2005
    58
    0
    0
    Location:
    Los Angeles, CA (Thousand Oaks)
    My dealer (Thousand Oaks Toyota, Nirmal was my salesperson and he's great) tried to charge $3000 over msrp.. I basically told them to "make love to themselves" in short order and offered to pay "manufacturer MSRP". I wrote the check for that amount and drove home. Frankly, I feel that they put the mark-up on the car because there are enough a**holes out there who will pay it.
     
  18. Jack 06

    Jack 06 New Member

    Joined:
    Oct 13, 2005
    2,556
    0
    0
    Location:
    Winters, CA: Prius capital of US. 30 miles W of S
    Unbelievable, frederic. Congratulations!

    That's the best single Prius buying experience (because of walking into the Costco discount as well as getting exactly what you want instantly) I've heard in five years of hearing these stories. :)
     
  19. flynz4

    flynz4 Member

    Joined:
    Dec 17, 2005
    329
    13
    0
    Location:
    Portland, OR
    Vehicle:
    2015 Prius v wagon
    Model:
    Five
    I do not think there is a significant shortage of Prii. They are not in abundance either... but there are plenty around. I suspect that demand still somewhat attenuated because of the slightly limited supply... so even as production numbers increase... that there will still not be a lot on the lots. However, I think that you can get pretty much anything you want in a couple of weeks... at least here in the PNW.

    I bought one off the lot on 12/15/05 ('06, Drifwood, pkg 8) as a gift to my daughter. I had the car home that night. The next day I called and told them that I wanted a 2nd for myself... but that I wanted to wait until Jan... and that I was only interested in a Silver pkg 8. It arrived yesterday 1/9/06. Three weeks for my first (and only) choice request.

    I was travelling out at the Oregon coast... and I stopped in at a Dealer who had 2 in stock ready to sell... and offered to get me anything that I wanted by exchanging with other dealers in "a couple of days". I don't know for sure if he could really deliver... but I would not be surprised.

    In any case... I agree with the original poster that supply is not as constrained as we are led to believe.

    /Jim