Prius Prime LE

The current auto sales climate has resulted in most 2022 Prius Primes being sold with dealer mark ups above MSRP. On rare occasions the past two months have I read of 2022 PP sales at MSRP after a significant amount of time communicating with dozens upon dozens of dealers.

 

Welcome to PC. You came to the right place to educate yourself about Prius.

Just editorial. The 2022 Prius Prime LE base starting MSRP is $28220, not $27220 as you stated. But you will not find a new 2022 Prius Prime LE sold in the US with this price as the final total MSRP. The $28220 price does not include a destination charge of $1025. The lowest possible MSRP for a car in the US is thus $29245. But almost all cars sold at US dealers include added installation of some options, such as floor mats, cargo mats, edge guards, etc, raising the MRSP. Those dealer-added options are included in the MSRP of the window sticker.

From the Zip code, you indicated in your profile, you seem to live in CA. Assuming that is true, then there is a $1500 Toyota rebate currently on PP subject to change after 2/28. This is cashback which would reduce your total payment but is applied after tax. So, the lowest possible sales price you can get on PP without any further discount would be $29245 + sales tax - $1500. But there are a few other fees and taxes added to this number for buying a car, including but not limited to documentation fee, registration fee, etc.

As for the dealer markup, it is not illegal. After all, MSRP stands for "manufacturers' suggested retail price". Simple supply and demand control the pricing of the auto market, and dealers responsible for selling the vehicle control the final say on the price of the car they are selling. From what I have read, the markup is rampant in CA and larger cities, but I have not seen this practice in my area dealership. The mark-up can be labeled on the sales slip as "market adjustment" as a form of premium. Or little better, they may tack on a bunch of high-profit margin dealer-installed options onto the car. Even if you are factory ordering a car, as long as you are using a dealer service to order it, I doubt you will get any better price than a car that they already have in inventory. Also, a larger downpayment is not likely to affect the interest rate. Yes, you will have less amount to finance so your total interest payment will be less, but the interest rate is tied to your credit history and rating than anything else.

With a shortage of supply and high demand, it is not the best time to buy a car, especially if this is the first time. Good luck.

 

can you hold off purchasing a car for awhile?