how much profit does a dealer make on genIII

Discussion in 'Gen 3 Prius Main Forum' started by syncmaster, Aug 19, 2009.

  1. syncmaster

    syncmaster Member

    Joined:
    May 30, 2005
    229
    12
    0
    Vehicle:
    2010 Prius
    Model:
    III
    I am wondering how much a dealer makes on a GEN III prius when he sells it at MSRP.

    I am sure the larger the package the more profit.

    Does anyone know?
     
  2. SCJoe

    SCJoe New Member

    Joined:
    Aug 15, 2009
    62
    14
    0
    Location:
    Sioux City, IA
    Vehicle:
    2010 Prius
    Model:
    III
    For a model 3 base, I *think* the invoice is $22,411 and the MSRP is $23,750. If that's true, then $1339, or just under 6% of invoice.
     
  3. 32kcolors

    32kcolors Senior Member

    Joined:
    Jul 14, 2009
    5,683
    952
    124
    Location:
    Redondo Beach, CA
    Vehicle:
    2010 Prius
    Model:
    V
    Total MSRP less total invoice plus dealer holdback (2% of the base MRSP).

    P.S. You can find the invoice prices on www.edmunds.com
     
  4. syncmaster

    syncmaster Member

    Joined:
    May 30, 2005
    229
    12
    0
    Vehicle:
    2010 Prius
    Model:
    III
    OK, thanks for the info.

    I wanted to know because I did a "cash for clunkers" deal
    a 95 previa 140k miles for a genIII pkg3

    And the dealer has called me 3 times to come down and fill out paper work so he can get his $4500.00 from the government.
    He seems very nervous about the delay in payment.
    they keep kicking back the paper work for little things.

    I can see from what you are saying that not only is this 4500 his profit he is also in the hole for the prius that I now have.

    I see why he is sweating it.
     
  5. Matt Herring

    Matt Herring New Member

    Joined:
    Apr 28, 2009
    421
    51
    6
    Location:
    North Andover, MA
    Vehicle:
    2010 Prius
    Model:
    II
    Welcome to the world of government run privately owned business. Hence the reason over 200 NY state dealers dropped out of the CFC program today...most have received only 5-10% of their CFC rebates from the government. In a business like auto sales I don't blame them...good reason to be worried about getting their money from the government.
     
  6. nineinchnail1024

    nineinchnail1024 New Member

    Joined:
    May 4, 2009
    280
    40
    0
    Location:
    New Orleans
    Vehicle:
    2010 Prius
    Model:
    III
    I was told by a fairly reliable source that profit can range from a few hundred dollars on a package II up to a few thousand for a package V with the works. I was also told that one the package I comes out, profit will be measly, possibly less than $200.
     
  7. stream

    stream Senior Member

    Joined:
    May 12, 2008
    2,977
    451
    14
    Location:
    Long Island, NY
    Vehicle:
    2010 Prius
    Model:
    V
    If talking about profit @ MSRP, your source saying a few hundred dollars for a Prius II isn't very reliable. ;)
    Edmunds.com - 2010 Toyota Prius Car Pricing Guide
     
  8. urlyadoptr

    urlyadoptr New Member

    Joined:
    Aug 9, 2009
    69
    5
    0
    Location:
    Plymouth, MA
    Vehicle:
    2010 Prius
    Model:
    III
    Why didn't the dealer have you do all the necessary paperwork before you took delivery of the new car? Once you sign over the title for your clunker and you take delivery, they can submit for reimbursement. It seems like everyone is blaming the government for mismanaging this program. In my experience, the dealers share at least part of the blame for not submitting the paperwork correctly in the first place (yes, the I's need to be dotted and the T's need to be crossed). Every time one submittal gets kicked back because it's wrong, it puts them that much further behind. And what about NADA? They lobbied for months to push C4C through; one would think they would have made sure their member dealers would be better prepared for it.
     
  9. radioprius1

    radioprius1 Climate Conspirisist

    Joined:
    Aug 13, 2009
    1,355
    155
    0
    Location:
    Iceland
    Vehicle:
    2010 Prius
    Model:
    II
    How much profit does the dealer make on the packages that come with whatever model you've decided to get? For instance, the owners reward package, the $600 thing with floormats and invisible film. Did the dealer pay $600 for that or do they make money on that too?
     
  10. wvgasguy

    wvgasguy New Member

    Joined:
    May 6, 2009
    1,255
    185
    0
    Location:
    a
    Vehicle:
    2010 Prius
    Model:
    V
    Don't confuse the $4500 as part of his profit. That's simply the government paying for part of the car instead of you. It's not "profit" per say.

    The Prius II was priced to compete with the Insight as Toyota simply cut the MSRP without lowering the Invoice an equal amount. The dealers don't make near as much on a II as they do a V and it's not just because the V is loaded. I can see why some dealers (regions) were not interested in the base models being available with the SR options. The profit would be only in the options rather than the car.

    For the OP's question this is looking at MSRP only. The "add on" options from the dealership or port are typically marked up pretty high. Not necessarily the mats and tangeable items you buy, but the protectants (paint, fabric) and misc warranties some offer (tires, road hazzards, etc) as well as extended warranties are large profit items, thus they push them. The maintenance plans in some cases seem like a break even item to those that purchase it, but the they get their money upfront and then if you don't follow through with all the purchased services they pocket the money for nothing. Sorta like getting a $100 gift card and only using $90. When you don't use that last $10, someone gets to pocket it.
     
  11. wvgasguy

    wvgasguy New Member

    Joined:
    May 6, 2009
    1,255
    185
    0
    Location:
    a
    Vehicle:
    2010 Prius
    Model:
    V
    They make lots of money on that stuff. Edmunds doesn't have prices for those items and it probably varies in regions depending on their supplier. You might ask why pay them $400 for tint if you can get it done for $250. Some like the convenience that comes with having it in your cost to finance. Also it whould be something then that has dealership backing on the warranty. The question then is it worth it?
     
  12. SilverPriusIII

    SilverPriusIII New Member

    Joined:
    Aug 17, 2009
    39
    0
    0
    Location:
    Bay Area, Ca
    Vehicle:
    2010 Prius
    Model:
    III
    Wow, if $4500 is the dealer's profit, then you must have paid about $2000 over MSRP. $4500 is what the government give you, it is your money from the C4C. In addition, don't forgot to account for the value of your Clunker.
     
  13. 32kcolors

    32kcolors Senior Member

    Joined:
    Jul 14, 2009
    5,683
    952
    124
    Location:
    Redondo Beach, CA
    Vehicle:
    2010 Prius
    Model:
    V
    It's only scrape value (around $100), as the dealer is required to render the engine useless.
     
  14. SilverPriusIII

    SilverPriusIII New Member

    Joined:
    Aug 17, 2009
    39
    0
    0
    Location:
    Bay Area, Ca
    Vehicle:
    2010 Prius
    Model:
    III
    Without C4C, the Previa van probably worth about $1000. Of course with C4C, it is only scrape value but in real life, you are getting $4500 - $1000 = $3500 from the government.
     
  15. jwarrenjg

    jwarrenjg New Member

    Joined:
    Jul 15, 2009
    27
    0
    0
    Location:
    los angeles
    Vehicle:
    2010 Prius
    Model:
    IV
    6% off msrp
    8% off finance
    plus more rip off more to come on maintenance
     
  16. werewolf34

    werewolf34 New Member

    Joined:
    Jul 15, 2009
    28
    0
    0
    Location:
    Angels
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    Sources of profit
    1) Car itself = Selling price - invoice, holdback, sales volume bonus targets
    2) Financing
    3) Warranties / add-ons
    4) 'Dealer fees'
     
  17. Philosophe

    Philosophe 2010 Prius owner

    Joined:
    Jun 2, 2009
    437
    72
    1
    Location:
    Montréal, Québec (Canada)
    Vehicle:
    2010 Prius
    Model:
    N/A
    See this very up front post by DianneWhitmire. This should answer your question.

    Dianne is a Fleet Sales Director for a dealer.
     
  18. pfreeus

    pfreeus New Member

    Joined:
    Aug 8, 2009
    62
    19
    0
    Location:
    CA, USA
    Vehicle:
    2010 Prius
    Model:
    III
    If one goes to www.truecar.com, they show $22,005 as the Actual Dealer Cost, $22,465 as Factory Invoice and $23,750 as Sticker Price.
     
Loading...