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Does Toyota lose money with each Prime sale?

Discussion in 'Prime Main Forum (2017-2022)' started by PT Guy, Dec 4, 2016.

  1. bisco

    bisco cookie crumbler

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    agreed, but i trust dianne, she's a straight shooter.
     
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  2. benagi

    benagi Active Member

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    Bisco, have you dealt with Dianne before? Just curious because I’m getting ready to buy a car from her.
     
  3. bisco

    bisco cookie crumbler

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    not in regards to purchasing a vehicle. we have conversed by private message, and she has a long history with satisfied priuschatters, all recorded in threads here.
     
  4. Mark57

    Mark57 2021 Tesla Model 3 LR AWD

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    The OKC dealer told me about the $250 profit. I didn't believe it. Do you guys actually think $250 margin IS correct????

    That can't be right?
     
  5. bisco

    bisco cookie crumbler

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    i only heard 'thin' from dianne, and i believe her. how they can knock off thousands up here, i still don't understand. maybe a back door deal with toyota?
     
  6. idleuser

    idleuser Member

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    If we calculate the cost of the premium features such as the carbon fiber hatch and battery pack.

    140 dollars/ KWH 140x8.8 = 1232
    Carbon Fiber Hatch= When asked, it was said the cost of the carbon fiber was so expensive, the president of Toyota wouldn't dare to utters the words.

    PANEL SUB-ASSEMBLY, BACK DOOR - 3609
    GLASS, BACK DOOR - 720
    BATTERY ASSEMBLY - 2750 MSRP BEFORE CORE CHARGE

    Judging by the cost of the parts, the car is indeed a lot more expensive to manufacture. Toyota is clearly doing this for ZEV credits.
     
  7. Tideland Prius

    Tideland Prius Moderator of the North
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    I have no idea. Like I said, that's base Yaris territory (which is why dealers would rather sell you a RAV4 or better yet a Sequoia - dealer margins on those are much larger).

    Toyota definitely wants to sell these to get credits and a competitive price vs. the Volt is needed. If the tax credits do expire, Toyota will really have a large price difference and it makes the upsell to the Volt much harder to a regular folk who just wants a PHEV. While the Mirai will get them more credits per vehicle, the Prime will probably get them more absolute credits just by sheer volume so from that perspective, it makes sense.

    (Probably why TCI limited sales to QC first - to ensure demands are met to get ZEV credits..... QC just adopted very similar standards to CA in terms of ZEV credits)
     
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  8. bisco

    bisco cookie crumbler

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    i don't think you can base the cost of the car on what they charge for parts. also, is the prime battery really only $2,750.?
     
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  9. Trollbait

    Trollbait It's a D&D thing

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    Toyota is knocking thousands off, and they are paying for it through avoided CAFE and ZEV fines.

    If we are talking the CARB ZEV program, a manufacturer needs to meet two targets. The first is the familar ZEV credits that can be traded or sold. PHEVs no longer earn any of these. The second is to have a percentage of their sales in CARB states be a zero emission vehicle. These can be PHEVs and hybrids, but have included ICE cars than ran on CNG or had a PZEV rating.

    Even with a reduced price, the Volt will cost more than the Prime, but the number of PHEVs with a battery about the size of the Prime's, and thus close in price, is increasing.
     
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  10. Jawsch

    Jawsch Member

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    I can guarantee you, they make quite a nice profit having "accidentally" seen the dealer cost of a Prime Advanced :p You'd be surprised how cheap it is to build a vehicle in Japan vs. the United States
     
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  11. bwilson4web

    bwilson4web BMW i3 and Model 3

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    Replacement parts can (and should) have a higher profit margin than the actual cost. For example, shipping and handling of parts is much less efficient than shipping a whole car if nothing else than the packaging and handling.

    If you really want to know, contact Munro. Bring a big checkbook.

    Bob Wilson
     
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  12. pilotgrrl

    pilotgrrl Senior Member

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    Wonder why the carbon fiber hatch is so expensive? Toyota's heritage is in weaving, and they even built special looms to weave carbon fiber parts for the Lexus LFa.

    Posted via the PriusChat mobile app.
     
  13. Tideland Prius

    Tideland Prius Moderator of the North
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    Low volume is my guess.
     
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  14. Trollbait

    Trollbait It's a D&D thing

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    They also traded BMW for their knowledge of mass producing carbon fiber parts in exchange for fuel cell tech.
     
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  15. bisco

    bisco cookie crumbler

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    i would like to know how much a replacement heat pump costs.
     
  16. TDR Marine Engineer

    TDR Marine Engineer Junior Member

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    Here is some real data. I don’t trust Bloomberg because the numbers seem far from reality.

    “While each ZEV credit should theoretically be worth about $5,000 (the fine for non-compliance), their market value is typically far less. For instance, over the first half of the year Tesla sold around $100 million in ZEV credits. If we assume that the company sold about 16k cars in states that offer ZEV credits over the period (about one third of the company’s 47k cars delivered), revenue from ZEV credits per vehicle sold stood at about $6,250. Assuming 4 credits per Tesla, this would amount to under $1,600 per credit. Moreover, with electric vehicles gaining traction, there is a possibility that the number of credits available in the market will start to outstrip the number of credits required by manufacturers, causing prices to decline. Tesla’s own mass-market Model 3 could itself boost the supply of ZEV credits, with the company targeting a run-rate of 500k vehicles next year.”

    As taken directly from a Forbes article labeled “
    Tesla's Lucrative ZEV Credits May Not Be Sustainable”
     
  17. bisco

    bisco cookie crumbler

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    12/04/16 :)
     
  18. Munpot42

    Munpot42 Senior Member

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    GM may lose money on their Bolts, but boy do they make up for it with their Tahoes and Escalades.
     
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  19. bisco

    bisco cookie crumbler

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    you never know if gm is losing money until they ask uncle for some, or file bankruptcy.
     
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  20. pilotgrrl

    pilotgrrl Senior Member

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    Seems like every cop shop in the US drives Tahoes anymore.

    Posted via the PriusChat mobile app.