Trying Not to Lust After the Prime

Toyota with deep pocket is known to throw away money for cars they need to sell one reason or another. They are regional, so you have to keep eye on deals in other regions. You can look at other regions deal simply putting zip code for the region at Toyota Offers, Inventory, and Dealerships - Special Offers | BuyAToyota.com I am currently looking for a deal on Rav4 Hybrid.

 

That's exactly what I did....went up to Washington DC to Jim Coleman Toyota after negotiating the deal beforehand. I was upside down on my trade by about $4000--but made it up with $3000 off the Prime sticker, a $3000 Toyota rebate, and the federal tax credit of $4500. I'm now way right side up, and much happier as my work commute is 26 miles round trip!

 

I live near Greensboro, NC, and I drove my trade to Jim Coleman Toyota in Bethesda Maryland. This was after several text messages, phone calls and emails. I sent them all the info about my trade including the sticker, my payoff and about 6 pictures. Once we agreed on the out the door price, I drove up there (about 400 miles one way), did the deal, and drove back home in one day.

 

I had an Audi S4–and it wasn’t easy to say goodbye. But I do enjoy the many extra Benjamins I have left over each and every month!

 

Drop those in an R8 piggybank and it's a lot easier. Last gens are like 60k now (and still dropping).

 

If by "something" you mean a $5,000 factory incentive that's not going to happen. There's a reason why everyone is recommending that someone in Idaho purchase a Prime on the east coast and it's not because we are geographically challenged. There is a unique CARB situation that Toyota apparently is in in that part of the country. That's the only explanation we have for the massive factory incentives that continue to be seen only on the east coast. If it's too much trouble for you to purchase a car from the east coast to save $5,000, your next best bet is Oregon, a CARB state, which has a $2,000 factory incentive. The incentive is good through June 4th, it might be renewed no guarantee but Toyota has kept renewing the incentives each month, probably your main deadline now is however long the 2017 models remain available

 

Ahh - the MLCM approval.

 

You guys are on a different wavelength. I pay cash and hold on to them for a decade.

 

Actually it's crazy to buy a new car, financially speaking. It has been proven time and again that on average buying a used car makes more sense financially, even when you factor in repair costs and possible undisclosed damage, and even if you keep the car long term. And if you are buying relatively late model you shouldn't have any concerns about getting stuck on the side of the road with a broken down car.

But those who can afford it like to buy new, even though it isn't exactly the best thing to do financially even for a long term car. But they like to buy new anyway because they enjoy it. However "affording it" is a debatable term. Technically if you can't pay cash then you can't afford it, and financing just adds to the losses that you incur when buying a new car. Thus another reason to buy a used car that you can afford to pay cash for.

And really you aren't saving money buying a Prius, so in a financial sense it is crazy to spend so much money when for most people the gas savings won't offset the price difference for a comparable non-hybrid car.

But not everything in life is about doing exactly always what is the most idealistic financially. If we did we would never go to the movies and only watch them at home. Then again, are movies and TV really necessary? The library has books for free. And who needs to go to a ballgame when you can listen to it on the radio (a radio is a necessity for safety reasons)

So we look for balance. Maybe we don't have to see the IMAX version of the latest movie and can settle for a regular screening, maybe even a matinee. And maybe hold off on the soda and popcorn! Then again, if you really enjoy IMAX then it's worth it, even though others will call you crazy for spending the extra money.

Think it all through, think about what you want, analyze the cost, and when all is said and done, let your wife decide!

 

I agree with much of what you said. However, you are leaving out one important variable: Risk. It is much more risky to buy a used car. Regardless of what you are told, in most states the law protects the used car dealer—so you buy “as is” regardless of what you are told, promises, etc. The used car is on that lot for a reason. Could be flooded, wrecked and painted (not always required to be reported—depending on the severity in most states), or worse. So buying new is almost always less risky. Also, you don’t get the $4500 tax credit at the federal level unless you buy new, so that cures $4500 of the depreciation difference right there. I also got around $3000 of the sticker, and a $3000 Toyota rebate. So that’s $10,500 off the sticker. In this case, foolish to buy used over new IMO.

 

@Since2002 , you're making a lot of sense. Regarding specifically:

Maybe I'm late to the parade, but it occurred to me this morning, that maybe an auto manufacturer's bleeding-edge hybrid vehicles serve, at least in part, to satisfy the legislated requirement for some average mpg across their product lines, ie: the hybrids can do the heavy lifting, and the rest of their vehicles can just mail-it-in?

 

Yes you are at more risk of having a problem with a used car, and perhaps a slight risk of major unrecoverable losses, but that has been factored into all of the studies that I have ever seen. On average the financial risk of having a problem with a used car is more than offset by the huge difference in what you pay for a new car, not only in sales price but in taxes, registration and insurance. So in reality your long term finances are more at "risk" buying new than old.

However peace of mind has value and yes people feel more secure in a new car than used, and are willing to pay more for it, and that's fine. However cars are built so well nowadays that unless you really got unlucky with say a flood damaged car then the risks of major problem with a recent model used car are pretty low. Others just enjoy a new car much more than a used car. So it's a luxury, which is fine, just something to keep in mind when budgeting.

EDIT - Oh yeah the rebate and incentives. The tax incentives are an anomaly in this equation. Yes for a Prime they certainly can make buying new a better financial decision, but probably only marginally when you factor everything else in. For someone on the east coast however the factory incentive I would think for sure tips the financial equation towards buying new. But again this is an extreme anomaly, thus the reason Bisco suggested it for the OP to consider.