Gen III - 2010 Prius II - Too Good to be True?

I have been shopping for a Prius II (2008-2010) New or Used that is priced reasonably (somewhere below invoice -taking account dealer incentives, etc...).

The best quote for a brand new Prius II in my area is $20,980 before taxes and all the other fees. This is very reasonable in my opinion when I compare to what others seem to be paying.

Here is my dilemma: I am also considering getting a used Prius as I have a budget that I want to stay within. I have opened my search Nationwide as I am willing to have the right car shipped.

Yesterday I got a call from a non-Toyota dealership letting me know that they had received a 2010 Prius II (Blue) as a trade-in with only 3300 miles on it. Their asking price was $20,900 and would be sold As-Is with the original manufacturer's warranty still in place. I visited the dealership and drove the car, inspected the bolts in all the doors, hood trunk, and those that I could see to make sure there weren't any hidden accident repairs that weren't disclosed (my brother works for a dealership and suggested this). So all in all except for the Toyota Certified Warranty it appears the car is in great condition. After a brief negotiation and the dealer saying he wouldn't go below $19,500 because he'd rather wholesale at that point, they said they would let the car go for $18,000.

I am planning on going back this morning and buying this car. Is there something I missed and is the $18,000 too good to be true? Another Toyota dealer that I had been in talks with said it was too good to be true and that surely there was something wrong with this car.

Please advise. I don't want to miss out on an opportunity or get taken by the same.

 

I did run a Carfax and also ran a NCIB Vin Check. These both came back clean. I do realize that there are accidents that can be repaired and not reported, which is why I did the whole body inspection (to the best of my ability) bit.

I found out from the dealer that this car was traded in for a Camaro and that the original owners had purchased it in Nov. '09. According to the dealer, the owners are from an area of town that is well-to-do which is one of the reasons trading in a new Prius for a new Camaro was no-big-deal, and low mileage is due to having bought the car later in the year and driving it approx. 1k miles a month (not unreasonable).

Should I be concerned about not getting the Certified Warranty that you would get from the Toyota dealership? I imagine I could buy this after market? Of course, the used one will carry the original warranty - I'm just looking to see if I need or should get the extended one that would equal the 7yr/100k coverage.

Thank you for your input.

 

The email and quote that I received from the dealer at the $20,980 takes into account current incentives for the customer and dealer and was a "this weekend" price. I recognized that this was a good deal that may not be around long, but the $18k on the used one is very tempting.

 

The name of the website is:National Insurance Crime Bureau Site. I would include the URL, but am being prevented from doing so at this time.