Why has my 2010 Prius IV suddenly plummeted in re-sale value?

One idea to maximize the sale of your Prius is to wait until the price of gas goes up again. You never know when it will spike back over $4/gallon. I find every time we cross that threshold, people start rethinking what they're driving and go for higher mpg's. I have 2010 IV base package bought 1 year and still love driving it. So much that I now have 21k miles, but I plan on keeping for at least several years or more. One note about KBB; it's not realiable and most dealers don't use it. There are websites like truecar, edmunds and others that can help you establish a realistic value for your car.

 

Nationally, the average gas price is down about $0.55 since the recent peak of six months ago.

I would also note the way these more efficient non-hybrids are being advertised, by EPA Highway mileage alone. And more ads are 'forgetting' to mention that this is Highway only, i.e. underhandedly implying that it is the Combined mileage.

Because many consumers don't notice, this subterfuge works to the disadvantage of hybrids.

As for your other complaints, I can't relate to them because I'm taller than you, keep cars until they have essentially no trade in value, don't hear the AC compressor at all, and blame last winter's road difficulty entirely on the aging OEM tires. Their winter grip deteriorated enormously between the first and second years.

 

You seem to under the impression that KBB valuations, dealer quotes, dealer offers have any relationship to each other, or to what you can actually sell your car for (to say nothing of what it is 'worth'). Why? Why would you think that a car should depreciate at a predictable rate? It dropped from $30,000 to $23,000 when you drove it off the lot, why not complain about that? Do you expect Oil to rise in price at a predictable rate? Do you agonize when it doesn't? I suspect a Prius is not unusual in this respect (you are just paying more attention to it), you are welcome to compare it, for example, to asking price of a Volt.

 

I noticed a drastic drop at kbb recently too. I also noticed they don't take into account all the high end options in IVs and Vs. Try edmonds.com, where they give you a much better selection of options to check the box for. Gave me a much better value for my V with AT, at what I consider to be much closer to market.

That said, the supplies of Prii at dealers have increased greatly since last spring's earthquake, and the 2012s are almost out.

 

Didn't read all posts, but resale value right now on 10's / 11's is likely a little depressed because it is end of model year clearance. II and III's are discounted almost $3k. They would heavily discount a IV now too.

It will iron out in a few months when the 11's are mostly gone and the 12's are in. But, the values will be a little less because the 12's have the mid-cycle updates.

 

My Prius "trade-in" was my 1996 BMW 328i, with 170,000 miles and completely beat to death. I sold it to a co- worker for $1,500, but I first took it to a mechanic to smog & repair it. He came with me to pick up the car. The bill was $1,800. He paid the bill and took the car

Fifteen years, that's about right. But I hope to trade in 2010 Barcelona Red for a Plug-in this Spring.

 

As the 2011 model year end prices are heavily discounted, so the used car prices go down. It's just market conditons, moreso (sp?) due to the 2012 mid-cycle refresh.

Toyota Sunnyvale is discounting 2011 Prius' almost $3k. That's why your resale values have gone down. They should seem better in a few months.

 

not too long ago, my daughters 04 w/90,000 mi. was worth $11,000. now about $7,000. just market conditions i guess.

 

This thread also goes to show you that buying the 'upscale' models such as the IV and V are a really bad investment. Not that ANY car is a good investment, but most dealers basically discount most of the added $10K in 'upgraded equipment'. I bought my 10 II as a leftover for about $21K after about a $2K dealer discount and $1500 rebate in Jan 2011. So at that rate. it's lost about $3K in a year. Buying top of the line models is always painful in terms of depreciation. Especially since it's the same car with some really expensive bells and whistles. Most people in the OP's position would be upside down in terms of balance owed vs trade in value.

Another thing to consider is that no dealer will give you a REAL number on your trade if you just go in and ask. You have to be serious and be ready to REALLY trade it in to get the REAL value. Any dealer anywhere is going to grossly lowball you if you just go in and ask what it's worth. I wouldn't even waste your time until you're really ready to do a deal. Then YOU can play hardball and just walk out if they bust your hump with some ridiculous lowball number.

Looking online and jerking a dealer around with no intention of doing anything will get you nowhere and get you the numbers you've been hearing.

Your description of your car's snow performance is grossly exaggerated as well. The Prius has pretty much the same ground clearance as every other subcompact or compact car. With 4 snow tires your car will go almost anywhere that an SUV will go. I get a lot of snow here in PA as well, and have driven my Prius in 6-8 inches of snow without a problem. To say that the Prius scrapes tiny snow debris in the road is simply not true. If you're trying to drive your Prius with all season tires that have 21K miles on them ... or even 12K miles on them ... you're gonna have trouble. I have a Mazda Protege, a Toyota Corolla and have owned Honda accords and civics, and the Prius is at least as good (or as bad) as all of them have been in the snow. Get yourself 4 quality snows and very little will stop your car.

Unless you REALLY hate your car ... I'd keep it ... equip it properly for the snow seasons, and enjoy the fuel savings that you're getting. Next time ... buy a II and a Garmin and some Clazzios and you won't take such a big bath on depreciation as well. Save yourself about $9K.

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true, but these online numbers are all over the place. and who can really judge the condition of the car objectively? you really have to be able to put a cost on everything that needs fixing before it can be resold.

 

The above highlighted statements are simply not true .... very small bits of ice and snow ????? C'mon .... What tires are you using for winter ?

Almost everybody here has a Prius and most have driven it in the snow ... so we KNOW that your above statements ARE NOT TRUE (or are innocently exaggerated).

If what you're saying above is not exaggerated ... I would take your car to the dealer, because something is wrong with it, and it's under warranty.

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The prices tanking also mean that they (dealers & factory) are more willing to negotiate! I just purchased a 2011 model five (can't say V anymore, because of the "Prius V") for essentially a $3900 discount.

BTW to the OP: NY is a big state. Winter conditions are quite a bit different in Syracuse or Buffalo than on Long Island. Why not include your area in your profile? Just saying NY (or PA for that matter) doesn't tell us much.

 

For me at least ... I'm in northeastern PA ... in the Pocono mountains ... I know snow ... and with 4 General Alpine Arctics ... the wheels very rarely even spin ... unless I TRY to make them spin ...

I had the Prius out the other day on the 18K mile OEM Yokos in about 6 inches of snow and had no issues whatsoever (I don't put the snows on until the last minute).

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So why doesn't your profile location say "PA - Pocono Mtn area"? That helps folks better understand your posts.

 

Fixed it !

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I wouldn't have bought a II. $1000 is a nominal price to get handsfree bluetooth integrated into the steering wheel, plus an audio amp under the passenger's seat, and 2 more speakers all of which should be better quality. You'll never find a stereo shop to put in anything worth a darn for under $1k. Bluetooth handsfree phone is very important to me.

Apparently the JBL is getting yanked in 2012 from anything but the Four and Five with a $$$ package.

 

I put in a top line Pioneer bluetooth unit, a 100 watt per channel amp under the passenger seat, and replaced all four crap factory speakers for a little over $400, and I guarantee it sounds better and has more punch than the factory jbl system. Sound deadened the doors when I had it apart as well for another $30. No need for a stereo shop ... I did it all myself in about 2 hours. Used the other $600 to buy snows and wheels and a bunch of accessories !!!

I couldn't live with the absolutely horrendous factory stereo. Toyota should be ashamed of the factory stereo AND the JBL supposed 'upgrade'. I don't think I;ve ever heard more anemic sound systems ... not even in GM's.

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I forgot to mention the DYI option. Well done. I think the JBL goes off fairly well for a factory system, well, with a good sound source.

 

By the way ... congratulations on your new III !!

I do kinda miss the steering wheel controls of the stereo.

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Back to the OP's stated price concerns...

1) The used car market went bezerk earlier this year, and then the earthquake & tsunami made everything worse. High gas prices, combines with a lack of used vehicles (thanks to cash for clunkers), and then a lack of Japanese vehicles made everything insane. Many auto websites chronicled this - TTAC did a particularly good job.

2) Hybrid prices VERY closely follow gas prices. A local dealer recently offered $18.5k for my car, but said he'd give me $20k for it if gas broke the $3.50 barrier. When gas spikes again, you'll see values go up - the Prius market is by far the most sensitive to gas prices.

3) New cars depreciate rapidly, especially w/ trade-in values. Right now is the worst possible time to attempt to trade a Prius, for many reasons:

A) All dealers are sitting on lots full of 2011s, since Toyota has been scrambling to make up for lost sales earlier this year. When you saw $26k offered, that's because dealers couldn't get new Prii from Toyota, so they HAD to find used ones, in order to sell anything.

B) Because dealers have so many 2011s on lots right now, they're offering great deals on them - and the Prius isn't traditionally known to sell well under sticker, but they are right now.

C) The 2012 model is new and updated, and will be here very soon. Savvy buyers know this, and won't buy a 2011 unless it's at a big discount. A used 2010 will have to be a MASSIVE deal to get them interested.

D) Well optioned cars ALWAYS depreciate faster and harder straight out of the gate. The trade-in value of a "new" Prius only gains about $500 from the $2k+ Nav Package, and then another $6 for the extra $2k Solar package.) Where a car might depreciate 25% in its first year, options often depreciate about 75%. This is because new buyers demand the "perfect" car - and pay for options. Used buyers often want that "car" but are far more willing to take what they can find within that model.

E) On top of that, new cars depreciate rapidly. All the jokes about losing thousands of dollars the moment you drive off the lot are true. This gets worse with each mile and month added, especially as you approach age/mileage thresholds. Break 30k miles, and you value will take a considerable hit, since buyers see the magic warranty disappearing. Dealers know this, and only want perfect new-ish cars that they can sell certified-used. The others go to auctions which don't net them much, if any, money at all.

The end result is this: It's a great time to buy a 2011 car (use truecar or Zag to save some money up front), but a bad time to trade in a 2010. Shop around and get offers from dealers, then stick your car on craigslist for a fair price. (Generally the mid-point between the Edmunds TMV and your dealer offers.) It'll sell quickly.

PS - Forget the KBB - it's little better than asking a toddler what a car might be worth. KBB still insists a friend's 5-year old Scion is worth $12,000...