I have signed a contract for a used certified Prius, 08, with 55k miles for $17,695. My credit union came up with an NADA value of 16,950 and said that's the max loan they can give me. The dealership says that they are paying above book and selling above book because Prius' are so hot right now, but the sales manager wouldn't show me what he paid for this one. My question is, is it common these days for Prius' to sell above book value? If they' won't budge on price, is this a reasonable price? Thanks David
I signed the contract with the full intention to purchase until the bank said that they can't finance more than it's worth according to NADA. I'm currently trying to decide between 3 options. 1. Pay the difference out of pocket 2. Try to cancel the contract 3. Try to continue negotiations despite already signing contract.
Come to think of it, the contract may be contingent on financing so you may be able to cancel without hassle, or use the max finance amount as leverage to drop the car price $1000.
I bought my 2007 Prius 2 weeks ago. It was sold new in September of 2007. It had 71,000 miles on it. Not sure what package level but it has JBL, backup camera, auto dim mirror with garage door opener, fog lights, SKS, not sure what else... It is a certified vehicle so I got Toyota 2.9% financing for 60 months with no money down. It was listed on the dealer's website for $13,900 and I got it for $13,000 plus tax and tags. So not all dealers are selling above book. I think I did ok with the price. You signed a contract to buy but they are usually dependent upon approval of financing. If financing is not approved then the car isn't yours.
I would think that NADA (or Kelly Blue Book) would take into account how "hot" a particular model is in a given region. If that is the case, then the dealer is overcharging. They may be convinced they can sell the car at that price, in which case they really won't budge. Or they may have smelled your love of this car and decided they can play hardball and you'll buy. Or if the contract is not contingent on your getting financing, then they have no reason to lower the price once you have obligated yourself to buy. My advice, walk away if the contract allows you to back out when financing has been denied. Once you tell them flat out, "No" and walk out the door, you'll find out. Either they'll let you go, or they'll phone you later and agree to the NADA figure. OTOH, maybe if the car is in really excellent condition it's worth what they're asking. But used car dealers are not always the most trustworthy folks. They may be overpricing a defective car in order to create the impression that it must be in great condition to merit such a price.
When I looked a Prius's i n my area recently at dealerships they were priced usually between $500 and $2,000 below the KBB price... and here they still sell very fast... a good one is gone in a few days. I would say go find another dealer...
Just another example of why and how the "book" values of cars are really irrelevant, though typically it is the other way around with the dealer explaining why your trade is not worth what the book says. If a certain car is hot it very well might not be reflected in a book value as book looks at historical data. Reading the other posts I think that you really only have 2 options - you already signed a contract and agreed to a price. I can not imagine that the seller will lower the price at this point. So you can either pay what you agreed to, or look to see if there is a way to get out of the contract. You did not state it but it is typical to leave a deposit when you sign the contract for a car - did you do this? If so and you walk away you will likely lose the deposit but also keep in mind that the dealer can sue you for the difference between what you agreed to pay and what the car actually sold and other out of pocket costs - chances are they would not, but they could. So walking away is not something I'd recommend. If you choose to try and get out of the contract realize that there is no right of rescission in Mass (at least that was the case when I lived there) so you are starting at a disadvantage and the dealer will likely step in to finance you (at a higher rate) if you claim financing issues. I'd likely go to the manager and in the calmest and most respectful way possible tell him that you are feeling burned and misled and that you would like to back out of the sale - I'd throw in the fact that if the car is so very hot then it should be a quick sell for them. I'd push all sorts of customer satisfaction buttons and see if they will let you out. Best of luck.
Prius' on the west coast tend to be higher than anywhere else, given what I've seen people have been paying for them. The price of a Prius goes down the closer you are to Motor City. My Prius private party was $15,500, I got it for $10,000 in Detroit!!
I am not sure what kind of "contract" you signed but stop signing anything until you both agree on a final price. As someone else asked, did you actually put any money down on that "contract"? If so , stop doing that. Quite possibly the "contract" that you signed is just some dealer B.S. designed to make you think that you are "locked in" when in fact you are not. Did they remove that VIN number from all their adverts? No? Then there is no contract (most likely) Most likely you are not really locked into anything. Unless the dealer is holding (really really holding and not showing or advertising) a specific make model and VIN number for you then there (probably) is no real contract regardless of what you signed. If you put no money down then walk away - in fact run away because your dealer is using sucker tactics on you. 1. No, do not buy a Prius over, and especially this much over blue book ) or NADA or whatever) 2. 17.5K for an '05 with 55K is about 3-5K too high. Don't do it. Run away. If you did put a something small down like a hundred or two - just lose the cash and run away from this "deal" Consider it an object lesson. Get on the internet and research other dealers within a 5 or 6 hour car ride from you (more if you;re ambitious). Use autotrader and cars.com to find private sellers. Consider CarMax (higher price but no dealer B.S and a 30 day no questions asked warranty on everything). You will find a much better price. Make sure you carfax/autochek anything you like before you spend/waste your time going to see it. And once again, stop signing stuff at dealers before everything (including financing) is set in stone.
If you have Credit Union financing why in hell are you buying from a dealer? The only car I would buy from a dealer is a brand new one. I hate dealers. There "certified" program is a joke. Most of the time they don't even change the oil. If it starts its certified. It's all a hustle. I checked eBay for Boston Mass Area and all I got were dealers at above book value so there getting good money up there for a Prius. But I would still look in the newspapers and Auto Trader and ebay with a zip code search and Craigs List. Here's a nice one in Arlington. Offer $13500: http://boston.craigslist.org/gbs/cto/2957544883.html
I either read it somewhere or seen it on tv, just can remember which. Full service dealerships profit rankings 1.Service department: made up 50 some percent of their profit revenue 2. Used Car sales made up around 30-40% of their revenue. 3. And believe it or not, NEW car sales was their lowest profit margins after prep etc. You are getting screwed, tell them where to go and walk out...
Picked up the car yesterday, got another $600 off the price after I signed the purchase agreement and the title. Pretty happy with this dealer, they had no obligation to budge on price after I'd already signed the paperwork. Toyota was actually able to give me an even better rate on the financing and I didn't have to pay above book for the car. Diane in Reno, Yes I signed a contract after agreeing on a price and securing my financing, and yes, the car was removed from their online listings within 48 hours and was never shown to another customer, it was not even parked on the sales lot but around back with the service cars to go in for certification. I just decided to push a little more on price with the ammo I got at the Credit Union. I paid significantly below KBB even though it was right at NADA value. I don't have time to drive to see a car 2 hours away let alone 5 or 6. The Certified program is very detailed and I like the warranty and lower finance rates that come along with it. It's not just "If it starts, it's certified". I was just looking for some feedback, and was surprised at the condescending tone that some are taking here. It's really too bad.
Congrats on your purchase! Sounds like your dealer was nice and kept it hidden so you could pick it up!!
Glad it worked out for you! I have an '08, I will be keeping for at least 4 more years, then we will see! Welcome to the group, read up, post up! :welcome:
