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http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg Many dealers across the country have been charging $3,000 to $10,000 markups, more than offsetting the "Cash for Clunkers" rebate of $3,000 to $4,500 in some cases. (http://www.dailytech.com/Rogue+Toyota+Dealers+Price+Gouging+on+Scarce+2010+Priuss+Wiping+Out+Clunkers+Savings/article16067.htm)

http://www.cleanmpg.com/photos/data/501/074_2010_Prius.jpgJason Mick - DAILYTECH (http://www.dailytech.com) - August 25,2009

Expected as standard operating procedure --Ed.

Some customers were just breaking even with cash-for-clunkers or even worse

While many of the domestic automakers offered steep price cuts on top of "Cash for Clunkers", many buyers chose to purchase vehicles from foreign manufacturers instead. Leading the pack was Toyota, whose Corolla was the leading vehicle purchased under the program by the first week of August. Even recently retired Sen. Bill Frist (R-Tenn.) traded in his 1991 Chevrolet Suburban for a brand-new Toyota Prius, joking, "You don't see a lot of Republicans driving a Prius."

Now it appears that a handful of Toyota dealers raised their prices to offset the government rebate and cash in on the high demand for its vehicles.

DailyTech has an exclusive inside look at some Toyota dealers' so-called "market value adjustments" (MVAs) on popular vehicles such as the 2010 third-generation Prius hybrid. With the typical sticker price of the Prius coming it at around $26,000, many dealers across the country have been charging $3,000 to $10,000 markups, more than offsetting the "Cash for Clunkers" rebate of $3,000 to $4,500 in some cases.

On an online forum, one customer reports, "We live in Lake Placid Fl. and could not deal with the dealer here. One charge they wanted was a market adjustment for this area of $3999.99 also dealer fees of $695.00."
... http://www.dailytech.com/Rogue+Toyota+Dealers+Price+Gouging+on+Scarce+2010+Priuss+Wiping+Out+Clunkers+Savings/article16067.htm

I'm sorry, but I don't understand people who are willing to actually pay a multi-thousand dollar markup on a car. It's almost as bad as the people who buy FSPs the minute gas prices start to fall because they think "Oh, it's cheap and will be that way forever!" First, do the math. Second, shop somewhere else. Third, try to look a few steps into the future. These cars will not alays be in scarce supply!

Good for the people who didn't bite, at least.

Without that "price gouging" which socialists hate so much, there would be shortages.

Without that "price gouging" which socialists hate so much, there would be shortages.

If that was an attempt at humor it escaped me, and if it was not then I believe it is time for you to reevaluate your world view.

This money was supposed to help the dealers and manufacturers, and it worked, better than expected for some dealers willing to take advantage of buyer needs. It's all good. :eyebrow:

they should put them dealers with jimmy hoffa

When the demand for a product is high and the supply is low the price goes up. It's not "price gouging." Yes Toyota has used some finicky marketing to say the MSRP is $21,000, but some of the same thing takes place with Honda and other manufacturers (though perhaps to a lesser degree). The amount saved on a Prius when trading a car for C4C has not changed, it's just that the initial price of the Prius is higher (MSRP + Huge dealer addon). Buyers who aren't able to look at the price and evaluate their deal before signing the deal for their new car really only have themselves to blame. The article is claiming that people are being ripped off by dealers using the C4C program when in fact they would have been paying 3500-4500 more for the car without trading in a clunker. The MSRP price is just an arbitrary price manufacturers set, and in this case the demand for the Prius has been greater than Toyota expected so naturally the actual price for the car is higher than the original MSRP. Give Toyota a year to increase supply and perhaps another car manufacturer a chance to produce a car which can really compete with the Prius and the price will go down. I view this article as mostly sensationalist.

Absolutely not surprising at all...............

Technically price gouging is illegal. Dealers adding markup when demand and supply are out of whack is capitalism. The difference is sometimes obvious and sometimes not. Certainly, the people who bought a Prius had alternatives and it was not required in anyway for them to buy a new car. That is capitalism.

Now gas prices after a hurricane .... that might be considered gouging since you are taking advantage of people who have no alternative.

The down side for the dealers is now that the cash for clunkers is over they are on the other side of the ball as they say. I've seen it over the years the number of car dealers that were flushed down the toilet by consumers that were taken advantage of.

Even today most of the dealer that are going under are the ones that in most cases were known for screwing their customers over. You can get away with it for a short time but sooner or later the word gets out on you and very few potential customers will ever venture into your show room.

Look around your town and see how many dealers that had poor reputations are still in business 10 years later? You get my point sure they may be making out like a bandits last week but the Cash For Clunkers is now over. How do you pad the MSRP when there isn't an incentive or time limit to do so.