Priuses going for $5k above MSRP in the DC area

Somebody that really needs/wants/can afford a new Prius?

 

So I was looking for a RAV4 Prime in the Dallas area. First one I went to had already sold it but didn't remove it from their website. 2nd one had a $10k market adjustment plus $2k dealer crap that didn't include $600 in nitrogen for tires. And the 3rd dealer said they only sell them for $20k over sticker. I wished them luck.

 

Plus $4K, here.

 

I suspect most new cars are selling over MSRP.
Supply is short and demand is up.

 

Everything is going for $5k above sticker these days

 

I am in DC metropolitan area. I sold my green Prius with 174k for $3800 at private KBB value back in September 2020. My red Prius with 164k miles is now at $5230 KBB.

The reason that used car prices are up, as everyone knows by now, is chip shortage, new car shortage, new car increased prices and decision by many to keep a year or two longer their used car reducing the market supply putting pressure on prices. I am sure by 2024 used car prices will drop fast to normal ranges including inflation of course.

 

I am in New England and have been looking for a Prius - I called at least 15 dealers and found only 1-2 cars actually on lots. Some incoming but not many actually - one person told me New England is only getting 22 Prius in this next boat that is supposedly getting to us on Jan 5. I found one that is already in US and in transit to dealer this week / but I had to pay $3k over MSRP. I gotta say I felt lucky to even find one that wasn’t already spoken for.

 

"Too much money following too few goods" The very definition of inflation. In the case of new autos, inventory is down due to the chip shortage. That drives the market to used cars, creating the current 30% bubble in used car prices. It's just not the time to be buying any vehicle. Some predict a correction in the used car market this year as chip supply eases. You won't want to be holding a financed used car when the 30% correction occurs.

 

I guess I won't be doing car shopping anytime soon. I am glad I bought my 2021 PP back in July with ~$8000 off MSRP (+$4500 tax credit). Was thinking of swapping 2021 PP to 2022 PP one more time, but not not with markup and only a $1500 rebate.

 

The Federal credit is still $4,502.

 

That is if the new BBB law does not override the current IRA code for the tax year 2022. No one knows what happens until the new IRA code gets approved, or we know for sure that it does don't get approved.

 

BBB didn't pass, and is politically dead. They may try to piecemeal it, but the way the rebates were structured for electric cars with the bonus for union campaign donors was one of the major reasons the whole bill died. I doubt it will pass when considered separately, at least in the current form.

 

Maybe... but who knows what happens. It's politics, anything can happen. Besides, even with a $4502 tax credit still available for 2022, I will not touch a PP with a small $1500 manufacture rebate (and a dealer markup). For the last three PPs I purchased, I paid $6K-$8K below MSRP. That is the price range I will pay for the car.

 

If you have a relatively new vehicle to trade and can get a couple of thousand more for it than it would have gotten a year ago, then if you can bargain the dealer down form $5,000 over msrp to half that, then you have a relatively fair deal. Sell your trade privately and you might be ahead.

A friend tried to buy a Rav4 Hybrid that was listed at $5,000 over. They were willing to drop to $2,500 over

Since Tesla sells directly to the public, are they asking for an upcharge?

 

Yeah, right now, if I sell my 6 mo old 2021 PP to Carvana, I would make ~$6000 profit. But, I would be paying capital gain tax on that profit. And if I don't trade in for that price to the dealer where I purchase a new car, then I would be paying a full sales tax on a new car purchase. Put a price of the car plus all fees, tax, markup and subtract them from a total of the car sold, any new incentives, and tax credit, I think I can still be ahead, but not much for all that hassle to get 2022 PP.

I may consider doing it for a totally different car, either a MachE or Rav4Prime but that will cost substantially more upfront payment (~$20K).

 

I hear you. Both PPs I have purchased so far were in the ~$23k range before tax and registration.

 

I walked around a suburban Chicago showroom while my PP was getting its first oil change. Big showroom, few cars, all with "market adjustments". ~12k on two 4 Runners (plus maybe 5k of dealer "add ons"), 6k on 2 versa hybrids, and 8k on 2 4 Runner hybrids. That was it stock wise. Very few used cars in the parking lot as well. Glad I bought my PP last May.

 

I only paid ~$18K after tax credit for both 2017 PP Premium and 2020 PP LE. For my current 2021 PP Ltd, after the tax return, the cost is ~$22.5K before tax and reg. I have been using the same ~$20K initial capital for the purchase of all those three cars. (However, for my current PP Ltd, instead of paying cash, I decided to keep the loan at 1.24% APR and put the ~$20K in my investment account earning ~10% return.

The purchase of MachE or Rav4Prime will cost me an additional new infusion of ~$20K capital... That is a lot of money for a daily driver that is not getting many miles nowadays. I am seriously thinking about swapping PP to Leaf at ~$20K after a $7500 tax credit, as you did at one point.

 

Yeah. I wasn't counting the state, federal, and utility incentives. That was the sales contract price.

As far as dealer stock, I was walking past a local Toyota dealer just the other day and from all appearances they did not have a single new van or truck or Prius. They had a couple of Camrys and the rest of the lot was vacant other than some used cars.