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Gouging

Discussion in 'Gen 2 Prius Main Forum' started by mcfly2, Jul 15, 2008.

  1. mcfly2

    mcfly2 New Member

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    I've been surprised that some people are so outraged when dealers and others attempt to sell a Prius for more than MSRP, or whatever price they think a certain Prius is worth. To me the car is worth what people are willing to pay regardless of the arbitrary MSRP that is attached by the manufacturer. Not that I would even consider calling this 'price gouging', but here's a good article that explains the benefits:

    There’s Some Good in Gouging GM980124.html
     
  2. sorka

    sorka Active Member

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    I think what people are more upset by are the bait and switch tactics where a dealer will quote one price, but add $3K of additional fees. Like paint protection, customer service fee, destination charge already on top of the destination charge that is included in the MSRP. People are being told one thing over the phone only to find they're being asked to pay way more than was agreed upon.

    I agree that dealers should be able to get whatever the can as long as they're not lying or tricking people into paying more.

    If most sat down and did the math, they'd find that the Prius, even at $5 gallon gas is not as economical as functionally equivalent non hybrid vehicles. At $10 gallon gas, that starts to flip around real fast, but we're not there yet.
     
  3. destro23

    destro23 New Member

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    Or you can do what i did... buy a new civic and wait for the '11 Prius in late '10.. the bait and switch... and the constant emails says WE HAVE A PRIUS.. first one here gets it!!! and refusing to give a price..

    so a brand new $17,500 civic that gets 39-41 mpg on highway (32 combined for me) is better then a 2008 with 19k miles that is $28,000, yes i said 28,000 double cheeseburgers for a used one.

    the extra $10,000 is not worth it a few more thousand and that's almost a deposit on a small investment house/condo.

    I will still look to get an '11... i like the prius, and what it's about.
     
  4. fcc

    fcc New Member

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    I am surprised that people simply do not call around and simply ask the dealer if they
    sell the prius at MSRP and have no hidden fees.

    If they say yes, put a down payment and simply wait!
     
  5. bigrichard

    bigrichard New Member

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    It is obvious you have always dealt with "honest" dealers. There is a dealer, not Toyota but one of the top 3, close to me that has a used base 2007 Prius, asking price is $33,988. This dealer can keep the Prius until it rots as far as I am concerned. If they will rape you like this, would you ever have any trust in them?
     
  6. mcfly2

    mcfly2 New Member

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    So what is so dishonest about this? Is the dealer forcing anyone to pay that price?
     
  7. la cucaracha

    la cucaracha New Member

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    Don't buy it if you think it is too expensive. I will sell my 08 package 5 leather touring edition in show room condition with 2500 miles to anyone wanting to pay me 5K over the 30K I paid for it. I won't feel a bit guilty. You can pick it up today! I bought a house from a guy and gave him a couple of hundred thousand more than he paid for it. Did he feel guilty? I was glad to get it and happy to give him the money! The hype of the price of goods has nothing to do with a willing seller and buyer.
     
  8. bigrichard

    bigrichard New Member

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    Obviously not, they have had it for 2 weeks and dropped it to $29.900 today. The dealer just doesn't have a good reputation either. I guess you don't understand. After 36 years of buying cars, I understand. I have never bought from them but know people who have.
     
  9. mcfly2

    mcfly2 New Member

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    No, you don't understand. I'm asking what is dishonest about advertising a price that YOU think is too high? How are they 'raping' anyone by advertising a price that YOU think is too high? Maybe there are other details about this particular dealer that you're not providing that would show them as dishonest. But the facts you've presented do not show that this dealer is 'dishonest' or 'raping' anybody.
     
  10. bigrichard

    bigrichard New Member

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    Ok, since you are the kind who has to have facts here is one from within the past 2 months on the same dealer. They had another used car for sale, a Corvette. It was used also with low mileage. I know someone who was interested in it and looked at it with him. They assured us the car had a clean carfaxe and was perfect, never any damage to this car. I asked about all the overspray and the paint in the fender wells where it wasn't taped up properly? They knew of no damage that car had ever been in and assured us it hadn't. 3 days after pointing this out to them, the car was 7 miles away on one of the buy here pay here type of lots. Sound like the kind of "honest guys" you like to buy from. I can go on and on.

    Another instance a few years ago I stopped in personally to have some service work. While I was there a hole mysteriously appeared on my heater hoses and they had to then be replaced before I left? A mysterious hole in the heater hoses? My word against their's.

    Can you see where I am coming from yet? A car that sells new for $24k roughly and they want right at $34k for it used? Hello McFly, do you see it yet?
     
  11. Somechic

    Somechic Member

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    I'm not trying to pick a fight, but I have one question: Why have you continued to go back to this dealer after the first instance with the Corvette? Fool me once, shame on you. Fool me twice....
     
  12. bigrichard

    bigrichard New Member

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    I haven't been back. They have the Prius advertised online. I wouldn't buy it from them if it was $20k. I just mentioned this as for anyone who would think about spending this kind of money on a car. Just be sure and check out some of these dealers before paying the penalty. This dealer is NOT a Toyota dealer and I have NEVER bought anything from them. I tried 30 years ago but never could. I did have the, what was suppose to be minor, thing fixed some years ago and it turned into major I felt like. Funny thing about that heater hose having a hole, it was right on top and squirting out on the fenderwell with a nice puncture in it.
     
  13. la cucaracha

    la cucaracha New Member

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    Nothing at all. Who knows what the dealer may have paid or how he traded for the car? And it doesn't matter what he paid for it or how much he asks for it. I don't get how the price of something is offensive either. If a vehicle is priced over market it usually wont sell. If a particular retailer continually prices goods over market they will definitely slow down their traffic. Personally I think a barrel of oil is too high but it is priced at market rate and those that want some of it have to pay market price. I try to buy as little as possible thanks to the Prius. In the Toyota line dealers are charging more than MSRP for the Prius because the market allows it and they are pretty much taking a licking on some of the other models and selling them WAY under MSRP. Can't blame them for trying to make up for it on models that are in demand. My 2 cents.
     
  14. mcfly2

    mcfly2 New Member

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    Um, yeah, I'm the 'kind that has to have facts', and proud of it. I guess that means you're the kind that believes everything you read and hear without facts.

    My point is that it's not dishonest to attempt to sell something for a price that some people may consider too high. Did you even read the article in my original post?? How about you comment on the article rather than posting inane rants about this particular dealer.
     
  15. la cucaracha

    la cucaracha New Member

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    So they are a note lot dealer. Note dealers are a niche market for those that can't get a loan anywhere else, so they price to cover the risk. Why would anyone even stop at a place like this for any reason whatsoever unless they are a pitiful credit risk? You are probably correct that honesty is not a car dealers first policy. Lawyers are car salesmen before they can be lawyers. :)
     
  16. bigrichard

    bigrichard New Member

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    I will, he who has the most money gets to ride and have light while the ones who don't just get left out. I know, it is the American way. I am just in the small group who likes to see things done right instead of greed taking over.
     
  17. mcfly2

    mcfly2 New Member

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    I think the point of the article is that this 'greed' as you call it is what drives competition and eventually balances the market. Without it, there'd be no incentive to enter the market to sell the scarce item, and they'd remain scarce.

    In other words, the fact that car dealers and others can sell the Prius for much higher than the suggested retail price is driving Toyota and other manufactures to build more hybrids, which will balance the market.
     
  18. bigrichard

    bigrichard New Member

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    EXACTLY. That is where the car ended up. The car was located at one of the "Big Three" first. After pointing out it had been wrecked it appears they wholesaled it off.
     
  19. bigrichard

    bigrichard New Member

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    I totally agree with you there. I just don't intend to spend roughly $10k over what a car is worth to obtain one. I am like another has posted in another thread, if nobody pays these prices they will have to come down. If I was making a million a year it might be somewhat different but I am just your average person :)
     
  20. mcfly2

    mcfly2 New Member

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    Well, the car is worth whatever the market is willing to pay. The stingier you are, the longer you'll have to wait is all. Either way the price will come down as the market balances.

    Does anyone have any first-hand knowledge of someone actually paying 5-10K over MSRP? And I don't mean some car dealer telling you this, since they have an incentive to make you think the cars are selling for higher than they actually are.