In search of...(shoot a hole in my logic and/or help me decide)

I'm currently driving ~ 24,000/year due to my work commute. I have a six year old Explorer and I'd like to try to keep it for at least 5 or 6 more years, so I've been thinking about getting a used Prius (2010 or newer) and hoping to pay less than $20k. Now, my one other requirement (besides the MPG with the Prius) is for adaptive cruise control. I have it in the Explorer and can't stand driving without it. In a 2010-2015 Prius, that would mean a Five with ATP (which seem hard to find) or a 2015/16/17 Three or Four with ATP or one of the Touring models.

Now, there's a dealership about an hour away from me with a 2016 Four Touring with a little over 2400 miles. Apparently, the dealership has been using it as a rental (per the sales person), so they're selling it as a CPO. Now, they're asking $25,750 for the car, which I understand is a good deal for a new Prius, but this is now a used Prius that the dealership has gotten the benefit of use out of for most of the last year (they've had it since about last August). I know cars aren't, generally, priced like the way I'm thinking, but I'm reluctant to take on the considerable first year depreciation (~$9700 per Edmunds) when they got the use of the most of the first year. In my mind, a more reasonable price is closer to $23K, but the dealer apparently won't budge on the price, so I'm going to walk away from that - I'd be willing to step up to $23K for this car (and can finance much more), but considering my original budget/thinking is $20k or less, and I feel I'd take a pretty good hit in value in a few months if I spend close to $26k, it's just not worth it to me. Not to mention It would be a significant increase over any saving I would get from the MPG. Am I out of my mind? Go ahead, be honest - I can take it.

In the meantime, though, there is now a 2013 Five with ATP that just showed up at another dealer, also about an hour away from me. This one has about 24,000 miles (single owner, personal lease, and looks like it was serviced regularly at a Toyota dealership in another state and then sold at auction). It's currently listed at $19,900, but I think, based on research, that $18,500 is closer to where it should be. I would need to drive it but is $18,500 a reasonable offer for this and/or a better deal than the Four Touring, above?

Appreciate any of your thoughts on this...

J

 

Thanks for those. So, just a quick update since I looked this morning. The dealership that wouldn't budge on the price on the 2016 Prius Four Touring dropped the price today a whopping $500.... Since they're obviously willing to move on the price, I'm going to go directly to the manager and offer $22,600, which I think is a fair price - it's dealer cost (about 28.000) less the depreciation to date (about $6k) plus 3% (so they can make some money back after the depreciation). I'll see what they say (I'm not hopeful).

In the meantime, I am awaiting the other dealer's best price for the 2013 Five with ATP...

 

2013 Five with ATP it is. Got it for $18,900 which seemed like a good deal ($1k less than the listed price). I'm happy with that deal with only 23,000 miles. Also, I asked for the latest map version, but they countered with installation of remote start (I rarely use the in car nav, anyway, so another win).