Buy now, or risk it and wait?

If your area has stock; double check the prices with Truecar, Sams Club, Costco, and BJ's to make sure your getting the best deal.

I'm a glass half-full kinda guy, and wouldn't count on that Federal tax credit. Heck, when people ask me how much I paid for my Prime, I only back-off the incentive and $1K I received from green car alliance. My Fed credit should arrive next month - then I'll lower the price I paid for the car - this is reality. Anything else, your lying to yourself - because no one can predict the future.

Now; If you got all your "ducks in a row"; finance cost will probably increase with the Fed tightening monetary policies. MSRP is at least a fair price in today's market; but check my first sentence. I heard last week that used car prices had seemed to peak; so if the dealers are able to restock; I'd expect more discounting; especially when they lose Fed tax Credit. Look at price history of new cars (ie Nissan leaf, Tesla). Remember, this is a depreciating asset, not like a home; which tends to be an appreciating asset.

If your in a Non-CARB state, I'd expect cheap used Prius-es hitting your state, due to CAT thieves and high replacement cost. The car may be repaired for less than 1/3 of the price, with a Non-CARB compliant system.

My crystal ball seems to be running out of juice now; so I hope this helps....

 

You are correct. Tax credit phase out starts on second quarter after hitting 200k EV sales. From tax code - The qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period. Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period.

 

As far as when to buy, I'd wait until the end of this quarter (March 31, 2022) to see where Toyota is on their 200k mark. If they reached it then you have Q2 to still get full $4502 tax credit. As far as pre Summer 2021 discounts off MSRP, Toyota cash back, vehicle availability, etc, I don't see that happening for at best 2-3 years.

 

i would buy now. you'll never likely get a price on your 13 like now.

 

It is not even possible to buy a Prime where I live and there are huge markups.
I would jump on that.

 

I'd say it's a minor miracle that they have some in stock.

 

Would agree with bisco, traded in a 2011 CT with 110k on it for $16k on my PP, 2016 Prius 3 touring with 20k on it for $21k for our Rav4 - used car prices are insane and as with condo's will be the first to drop hard once the shortage eases at all

 

While the full tax credit on PP is likely to be available at least until the end of June purchase, the availability and opportunity to sell your old car may not last long. Timing is everything. It seems all the planets are in line right now for you. Go for it.

 

i have to wonder if the dealer really has/had the car

 

Well, if where you live is like Colorado, finding new hybrids/primes is pretty rare!

I just looked at our largest dealer in Denver and they only have 26 vehicles in the lot and 327 in-transit so folks are just paying holding fees for the ones in transit but that's even hard to do. (I had to do this for my 21 AWD Prius last July...put $1,000 down which they deducted from the MSRP I paid...I haven't seen Colorado Toyota dealers add anything to the MSRPs but had a co-worker who ordered a new Jeep Rubicon and when it came in the stealership tried to add $10,000 in "market adjustment"....crazy.)

Not a single Prius on the lot in Denver so I just checked my dealer in Colorado Springs...he only has one listed and looks like it's in-transit...and only an LE model. Mine seems to have plenty of Highlander Hybrids but close to $60,000...ouch.

Is it just me or are we seeing a LOT more hybrids out on the roads these days? I'm also seeing more Tesla than ever.

 

Congrats on your new car!

 

So if Toyota comes out with a restyled next gen Prime, does the Tax credit begin all over again til 200k vehicles sold?

 

Nope, it's by Manufacturer, not by model.
So, for Toyota, that includes Lexus vehicles.

Thread on the Federal EV Tax Credit likely expiring for Toyota (and Lexus) vehicles:
May have reached 200k | PriusChat

 

Wow. That is surprising.

So Toyota would have to create an entirely new make to get that again. Glad I got mine when I did (2020).

 

No, that won't work. You'll see why when you read the post right above what you wrote.

 

The incentive sunset structure is the same as used for hybrids previously, though that one had a 60k sold limit.

 

Do you know which manufacturers reached the max limit of 60K sold in the previous hybrid incentive tax code? I was not in the market when that law was in effect, I have no idea. But my guess would be only Toyota may have sold enough numbers of cars to reach that limit.

 

Yeah, that incentive also had an end date. It started after I got my 2005 Prius, so details are murky. Toyota hit the limit. Ford was the only other company with a full hybrid out at the time. I don't think the program excluded mild hybrids, so Honda may have been a maybe with Ford.

The program ran at a time when hybrid choices were limited, and didn't run long enough to really help change that. It helped sales of models already, or soon to be, out. It didn't give manufacturers incentive to put out new hybrids. People were asking Toyota for a hybrid Rav4 and minivan back then.