Blizzard White Prius IV with Nav 7,500 miles. Was at a car lot over the weekend and requested a trade in quote for my Prius and they came back at $19,500 which is also what KBB says. Considering I paid $28+ that is a big drop in one year. Hopefully it will even out during the second year a bit, almost one third in a year is a bit steep in my view. I had thought Toyota held its value better than this but maybe it is just a first year thing?
Well you are still in the same year model of the car, its totally normal. They are offering you this price to sell it probably 21 500 - 22 000. No matter the brand of the car, the first year you are always loosing a lot!
For grins, try mapping KBB for an equivalent, new car, say an upscale GM/Ford/Chryslter product and then ask for the same car with 7,500 miles and 1 year. Map it out and we'll all gain a clue. Bob Wilson
Just tired KBB with a 2010 TSX which we paid $32k for and KBB gave $27k so it shows much less of a depreciation hit for the Acura. I used the trade in value as Good. The Acura seems a little high in valuation to me and the Toyota low after one year I would not have thought there was that much difference in brands. Toyota 31% Acura 13%
That's your trade in, or wholesale value to a dealership. It's always going to be lower than the retail (KBB - $24.9K), or private party value (KBB- $22.8K). Keep in mind the dealer has to make a profit, so his wholesale price is well below what it's actually worth. He will give you ~ $19.5K and then turn around and market it for ~ $24.9K, and depending upon inventory, may sell it at that price, or maybe as low as $23K. That's how the game is played. FYI - Most cars depreciate in "trade-in" value about 50%-60% in the first year.
Just wait till gas prices spike again, that $19K will jump to about $24K! It's all about supply and demand... last month you ccould purchase a new IV w/Nav for under $25K, now it's closer to $26K! I guarrantee the prices will sky-rocket if gas tops $3.00 a gallon (Reference: Atlanta area where gas is currently under $2.50 a gal)!
The war against Toyota by Secretary TheHood, David Strickland, Ralph Nader, Consumer Reports, Congressmen Towns and Stupak, the Toyota Action Committee, and the national media has had an impact on resale value. It really just puts us where (as noted above) where everyone else is. I think over the next few years, that will change.
That seems a bit harsh but assuming that you paid $28k a year back probably these are $26-27k (?) now, new because Toyota is giving them away with tons of incentives. So in that case the dealer could probably only get $22-23k for it anyway, so $19,500 trade-in is not terrible. If that's the case, yep, this could not sell for more than the 22-23k range since it is a year old and that explains the trade-in.
Consumer Reports has rated the Prius the top car in terms of depreciation the last few years. Excellent reliability, low repair frequency and high resale value. That is probably still the case, despite all the Toyota bashing that's been going on in the agenda-ridden American media. Added to that is the low demand for hybrids, now that the financial markets have gotten oil futures prices back under control. Just keep in mind that hybrids are cars, and the car market is still a disaster where incentives abound. Long-term, hybrids are still the safest, most conservative "investment" in a car.
We may also being seeing 'ripple' from the "Cash for Clunkers." It may have accelerated Prius sales last year only to soften them later. . . . or at least that is what the skeptics claim. I'm not in that camp. I've seen a trend that started in May of weak, hybrid sales, not just the Prius but from the Dashboard report of all hybrids. I doubt if there is a single cause but an accumulation of effects. Worse, I'm seeing all of the announced vehicles which can sometimes suppress sales (something the Macintosh community saw when new models were announced and it crushed current sales.) So I don't doubt the user's claim but rather would suggest a wider selection should include the Camry hybrid and Camry gasser. Also the Ford Escape although Ford just announced a model change. Perhaps the Honda Civic and Honda Civic hybrid. For good measure, Jetta and Jetta diesel since they want to play in this market. We don't have enough information with only two data points to make anything but perhaps a testable hypothesis. Bob Wilson
That kind of drop is frequently true for loaded out models. Proof that all of the gadgets are an emotional buy and don't add value to a vehicle.
You'll note in my post I said a month ago... The price has risen since then. See the Truecars Price History Reports below. I purchased in July from Team Toyota, Lithia Springs, GA and got my Blizzard Pearl III w/Nav for $22,088. The same dealership wants $23,900 now... You can see the price has drastically increase since the beginning of September! July August September Will be interesting to see if they continue to climb or plateu at this level until the 2011s arrive.
Didn't we see an announcement from Toyota of a Prius price increase, ~$250, about a week ago? Bob Wilson
Also very high margin for the manufacturer. Nav for $2k and it's just a $200 GPS unit plus a few differences in dashboard trim? Big margin
Paul, That's great, but I still don't see any evidence that a new "IV" is, or was being sold for "under $25K". That's what you said. The data you presented goes back more than a month, and the lowest price I see is (from your data) is still over $27K.
Not sure I trust TrueCar.com... checkout the Prius, average 37 days inventory, vis a vis, Ford Escape Hybrid's 6 days.... TrueCar.com Identifies Best Worst Buys Based on Vehicle Inventory Days | TrueCar Blog
Just put in the zip. With Nav on a IV, the average price paid was: $28,214. Dealer cost was: $27,002. Don't see anything close to $22.8K for a IV with Nav (which is what he said). Anything that low I suspect would be a "company/lease" vehicle, with low mileage. I do NOT believe it's new.
OOPS... I was interested only in, and had assumed, a 3rd party, after-market Nav... My bad :embarassed:
