Buying a new Prius

[shifty35]

Alright, I thought I would call upon the collective knowledge around here and hopefully come out with a good view of how to proceed.

I am wanting to purchase a Prius for my wife. I've got around $10k I can put down, and would like the resultant payment to fall below $300 / month if possible. I don't need the car tomorrow, next week, or even next month, so I have plenty of time to order a new one.

Used Prius pricing seems to be all over the map. The option packages on the Prius are honestly pretty worthless to me. I'd like cruise control, so that demands option package #1. I've spoken with dealerships who say #2 and up is all that is normally made, so a #1 will likely take 5-6 months to make. That's fine.

MSRP on a new package #1 is $23,595. I have spoken with one dealership who promises to sell ordered Prius' at MSRP. Used Prius in the 04-05 with 60k mi range still seem to be selling for $18k-$21k depending on options. To me, the strong resale of the car seems to make buying used not as attractive. New, 0 miles, full warranty for only $5k more seems worth it.

I've never bought a new car. What hidden costs and fees do you run into?

Anyone buy a Prius lately and remember all the garbage?

[xcel]

Hi Ben:

___Wait for the Prius-III. Trust me, you will be glad you did.

___If your dealer is promising MSRP, place a few $’s down today and wait for the third gen hopefully in March/ April. Unfortunately, since they are in short supply, you can bet you will not find them in base form. The best thing that could happen is gasoline goes back to $2.00 a gallon and you can pick them up for a few hundred over invoice until the next price spike a few months afterwards.

___Good Luck

___Wayne

[Dan]

I'd take the leap. I'd do it all through the internet using AutoTrader.com or some other like site. The Used Prius market is dicey. With the value on these cars so high, they are getting re-assembled from crash sites and sold as used. Look for a "salvage title" and look for the VIN on all the major body pieces to make sure it hasn't been frankenstiened.

I don't know what the market for New Prius is like right now, but with work and patience you should get what your after. Just do it online through the internet/fleet sales team. Ask for all quotes in writing (email) and avoid telephone quotes. If you buy new, I'd also suggest buying sight-unseen. Just pay the $300 for them to drive it from their showroom to your house. Last car I bought I did over the internet, delivered 350 miles from dealer to my home, and I never once met the sales guy. Just took the keys signed the paper and it was done.

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[shifty35]

Wayne,

It's tempting to wait for a Prius-3, but my expectation is they will not be available until later next year. The dealers say if I order now I will probably get an 09 model, which is still a Prius-2. The Honda hybrid is also tempting (Honda nut!) but the car will mainly be a city-mobile, where the Prius will likely still crush it.

Dan, there is a dealership about an hour away that says they will sell for MSRP on arrival. $500 deposit when ordering. When you order, you go on the waiting list. If a Prius comes in and nobody else on the list wants it, you get first shot at it. Everything seems kosher to me.

I'm more interested in knowing how to negotiate out of fees and bogus stuff they may try to throw in.

[Dan]

Originally Posted by shifty35

I'm more interested in knowing how to negotiate out of fees and bogus stuff they may try to throw in.

Unfortunately the only real negotiating chip you have is "I'll close today". I would put yourself on the list for "any" vehicle (color=any, options=any). Problem with those lists is that they don't build to order. They get the cars and then see if there is anyone on the list that happened to pick that square. I'd get on a list, but I'd also ask what days of the week they get inventory. Then just cold-call them on those days and say "You got a Prius I could buy over the phone this evening?". I'd position your down payment so you could move it quickly. If they have one coming off the truck that day, you could buy it on the spot before they went through the process of calling everyone on the list. If they have a buyer on the phone, it saves them a few hours of calling list members.

I'm pretty sure that most dealers will sell a car on the spot even if there is a wait on it. Just easier for them to move it today, then to pull a buyer in for tomorrow. This is effectively exactly how we got or MMH. We waited on a list for 4 months, then got feed up and spent 3 days calling dealers. On day 3 a guy in San Antonio closed the deal over the phone a few hours after we called. The drove the car the next day and the bank took care of the rest.

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[lightfoot]

A whole truckload of white Prii whizzed by me in the 40mph zone yesterday.

[JimboK]

Originally Posted by shifty35

I'm more interested in knowing how to negotiate out of fees and bogus stuff they may try to throw in.

Tell them you want the bottom line price in writing with all fees and taxes. Then look it over carefully before committing.

You can expect a dealer prep or processing fee of some sort (maybe with some different name) and state-mandated tax and titling fees. Comparison shop ahead of time with several dealers to get a handle on what the prevailing fee amounts are in your area. It doesn't have to be a Toyota dealer; dealer fees are not make-specific.

Be on the lookout for overpriced dealer add-ons like undercoating, pinstriping, or fabric protection. They are mostly dealer profit.

At closing, the finance or business manager will likely try to push things like an extended warranty and prepaid maintenance (more dealer profit). The latter is totally unnecessary -- Prius maintenance is simple and much of it can be DIY jobs. The extended warranty, if you even want it, can be bought much cheaper and any time before expiration of the 3-year/36 month factory warranty. The dealer probably will have it priced near $2K, but there's a fellow named Troy who sells the Toyota (not some third party) extended warranty on PriusChat for less than $1K.

Try to have financing arranged ahead of time. I had been pre-approved for a credit union loan before going to the dealer. Turns out, the dealer offered a financing package through Wachovia for a quarter percent lower interest rate, but that won't always be the case. If the dealer knows you're credit-worthy from the start and that they can move the car now, as Dan suggests, you may get more concessions from them.

If you're thinking about trading in your old car, expect to get hosed on that; the dealer won't offer you something they can't make a profit on. You're better off selling it outright.

Good luck!

[msirach]

If you order, specify that you: DO NOT WANT ANY DEALER ADDED OPTIONS! Some will say, "I thought you needed the special coating, etc for ONLY $999!" You have 2 efficient autos and if I didn't have to have one, I would wait until March or April.

[shifty35]

Baby is coming in March at the latest. We may be able to deal with getting a car seat in and out of an Echo, but my wife has a neck injury from an accident a couple years back that makes it difficult for her to load / unload the backseat by herself, so getting something a little more spacious and accessible before the baby comes may be necessary.

Waiting for a 2010 model is tempting, but they go into production in April. That probably means they will reach dealerships next summer, and who knows how long the waiting lists will become at that point.

Anyone have a Prius-II around Nashville that we can test drive? I promise I won't ruin your tank.

[shifty35]

I actually got to drive a Prius yesterday for the first time. Great experience! The car is so ridiculously easy to crank some FE out of in the city compared to the Insight. Just 1 mi after jumping in it I was already over 70 mpg avg.

We decided buying new isn't the best fit for our budget / needs, so we're looking used. This particular Prius is an '04 model, 66k mi, Seaside Blue. It's probably a pkg #2 by my estimation. The tires are toast too. They are asking $18,800 but I have a feeling that's at least $1k more than I want to pay. At least I can always walk, no hurry to buy.

Will be negotiating this afternoon, wish me luck!