I received the following email from my local Toyota dealer. What are your thoughts on the pricing? Unethical sales practice or just the free market at work? Personally, I don't think I will do business with them in the future."Prius in Stock, Prius Available Today Saturday, July 26, 2008 1:01 AM July 26, 2008 XXXXXXX Toyota of XXXXXXXXX Dear Tim, I have Great News! I have a 2008 Certified Preowned Prius in stock. This Prius is available today! It is a Silver Metallic with gray interior and option package #2. This Prius will not last through the weekend do not hesitate. This is not a joke. This is a certified preowned 2008 Toyota Prius with only 18,000 miles on it. This Prius is only $29,991. Currently the waiting list on new Prius's is 5 months or longer. Package # 2 Includes: cruise control, heated outside mirrors, 15-in. 6-spoke alloy wheels with trim rings, tonneau cover, seatback pockets, AM/FM CD with six speakers, auxiliary audio jack and MP3/WMA playback capability, Smart Key System, backup camera and Vehicle Stability Control (VSC)" FWIW, I bought a new 2008 Prius Touring, Package #6 for $29,300 out the door (including tax, tag, title) in April...
Free market economy. It's not unethical...if you think the price is unfair you shouldn't buy. If everyone thinks the price is unfair and don't buy then the dealer will be forced to lower the price.
Sales of any item that is non-emergency in nature (i.e. bottled water after a hurricane) are not unethical, you have the no pressure, free market choice.
Gosh, My 08 has 5,500 miles on it. If someone offered me 30 grand I guess I would be of low moral character. As the song goes,go on take the money and run.
I don't see anything 'unethical' in the ad. All the selling info is already upfront, so it's a buyer's choice. The dealer will be unethical if they agree to sell you a car at a price, and then turn to the next 'high' bidder without telling your car is gone.
It's border line. If the dealer was simply informing you that he had such vehicle and the price was x, then it wouldn't be unethical. But in this case, the dealer, through comments like "great news", "won't last through the weekend", "only x number of miles", are comments designed to try and sell on a deal that is a complete rip off. The comments are designed to convince you that this is the deal of the century but it isn't. Since you are an educated consumer and can shop around and do your own research and arrive at your own conclusions, the dealer isn't doing anything illegal, but the message is misleading and if someone simply takes them at their word, which is dishonest, then it's unethical. Gas prices have dropped 70 cents in the last weeks and dealer after dealer, even in this forum, are now saying they have excess inventory at MSRP. If gasoline keeps dropping in the short term, you will most likely be able to get a new one for less than MSRP without even trying hard. Even through the past few months, you could get one for MSRP or a little less if you were willing to wait a month or two.
This isn't much different than the dealers in our area. As far as I know they aren't sending out mailings or putting adds in the paper, but they are putting the used cars on the lot for $29K+. It's like everything else we buy -- if you think the price is too high for the product you go somewhere else and try to find it.
Randy -- You really get my point. Unethical was probably not the term that I should have used. Because of the outrageous price and the way the email was worded to sound like such a good deal, I will not do business with this salesman in the future. His sales pitch and offer was not in the best interest of his current or future clientele. Ultimately, he and the dealership will suffer from his actions...
You know you could just click it into the trash bin and not pay attention. He is trying to be informative and proactive in getting new sales. If the price is an affront to your sensibilities then ignore and go to another dealer, but unethical I think not. Buy low sell high is the true capitalists method.
MSRP....suggested retail price.....if someone will pay more, they did not take the suggestion. While it is not unethical, if does piss me off as the dealers around here are doing the same thing. I am all for free market and get what you can. Buy it and pay for the damn thing in pennies........1,2,3,4..........
OK, here is a confession from another idiot who needed it now. Duh! Here is a Sacramento tale of being taken to the cleaners. They are located on Auburn Blvd if that matters to some of you. After the $500 for permission to see one in 3 to 6 months, and even asking if they had any used ones in stock, was taken out to their lot and shown a 2007, with 16k miles, with zilch for add-ons, ugly black. Was told I could have it for $30,000. I left with tears running down my face. They knew I had the hots for one and I was talking cash, (even dumber yet). I get a call from them after a month wait and they have a gold one with Pkg#6 just in and wanted to know if I was interested. To end this sad tale, I paid $33,500 out the door in cash (please note that vaseline would have been extra). Did I mention that this was at a dealer here in Sacramento, California on Auburn Blvd, near Fulton Ave??? Oh!!! OK... I really like the car, but they will never get my business again. Did I mention that this was in the North Sacramento area? ;>)
This would be really funny if it weren't happening all around us and no one seems to think its crazy.