So my wife received a card from our dealer to buy back her 2010 Gen III Prius for 90% of value or roughly $24,500. We were both surprised by the offer. I just bought my P/V/3 a few weeks ago. So I knew Prii hold their value but that kinda blew me away and wondered if anyone else was offered a deal like that? We're toying with the idea of getting a 2012. Then I wondered maybe there's a problem with the 2012 or there's some weird dealer catch. Usually dealer offer's like this never quote a price but this one did. Whaddya think?
I like your clairvoyance. Most likely a dealer come on. We might check it out. If we do, will post results. T
You need to read my post and the letter from Toyota more carefully. Go look at those two words.. "up to" It is literally a trap to get you in and driving a 2012 Prius so they can sell you it. They don't care about buying back your car.
Thanks. Rather than re-read your post was looking for something a bit more substantive. Was curious if there was more to this than dealer come on, perhaps suggesting supply issues since prices of used Prii around here are quite steep. Anyway, your comments noted.
No clairvoyance here. I got a letter from a local dealer about a year ago with the same type of offer. So I called them up and told them to write the check and I will be right over with my title. Their reply was that they would have to inspect the car first for milage, performance, appearance, AND depreciated value before they could make a final offer. Dealer come on, big time. Remember, if it looks too good to be true, it probably isnt true.
Amen! This is useful info, so thanks for taking the time to write. Indeed there is no such thing as a free lunch. I have not seen this sales technique before so perhaps my naiveté is showing. A lot!
Dealers are scumbags. Their goal is to get you in the door and entice you in getting a new car for the same low monthly payments. In reality you will take a $10,000 hit. You will have to pay 100% sales tax on both cars. That alone is about $4,000. You will never get that back.
In the last week I have read about 3 people that have posted comments like this. They want to trade their 1-2 year old car for a 2012. If these people can afford to take a $10,000 to $13,000 loss of money after 1-2 years why are they buying a $25,000 Prius? It is half the value of the car!!! Look at this loss just in sales tax. First Prius $25,000 * 8% sales tax = $2,000 Second Prius $25,000 * 8% sales tax = $2,000 Total in tax loss that you can never get back $4,000 (16% of what the car is worth) As I posted above scumbag dealers will hide all this and keep your payment the same. You will never realize that you are losing all that money.
No, it doesn't really work that way. There is a trade allowance. You pay taxes on the price of your new car minus the trade in allowance. new car = $25k trade allowance = $15k you pay tax on the $10k left over.
Still that is $2,000 in tax on the new car and another $800 on the differnce of the trade allowance. That is a $2,800 lost in taxes alone.
Yes, but I don't think anyone is under the illusion that they don't lose money on taxes. That's pretty well expected. All money paid in tax is "lost". Everyone has to decide how much they want to shell out.
Some are under the illusion that if they go to a dealer and trade a new car in after 2 years they will make out. With loss of tax, deprecation and finance fees you will always lose. Losing $10,000 to $13,000 on a 1-2 year car that cost $25,000 is not good.
Anyone that has the illusion that the car they buy and drive is an investment needs to take a quick course in accounting. They are expenses. How fast/slow you lose value depends on how well you maintain your depreciating asset. With proper care you should get 15 to 20 yrs out of your car. Not sure the Prius is worth it past 10, but I will find out.
This falls under the classification of "DEALER DECEPTIVE SALES PRACTICES." along with the 20% off one.
I'm sure there's some "fine print" in the offer--what was it? I got one from a local dealer saying they'll buy my 2010 Prius for MSRP. That's right, MSRP!!!!!! Oh...wait...the fine print said there would be deductions for a bunch of stuff (including mileage), and the per mile amount (can't remember exact number) basically took the number down to Blue Book. What a joke.
Well, the dealers, while a bit deceptive, are not "scumbags". They can only make money selling and servicing cars. Go there knowing that, and that you will have to pay -at least- fair value. If you are not careful you will end up paying more. The dealer is in business to make money, not to give it away. Now, -some- dealers -ARE- "scumbags". They are the ones who change odometers, do "bait and switch" tricks etc. But you can be sure all dealers, honest and dishonest will do what it takes to get you into the door so they can "persuade" you to buy a new car. Love that MSRP thing. MSRP less depreciation, less mileage, less damage = book value (retail). He can't loose, you can.
