2010's Not Jumping Off the Lots Everywhere

Oh god I could use a ton of those right now. Any of those.

Our sales are probably going to be down about 5% from last month. Of course, I don't have, or only have a few, 2009 Camrys, Rav4s, 4runners, FJs, or Sequioas. Of course that will hurt our sales.

"The rumors of Toyota's demise have been greatly exaggerated"

Just remember, that if the unemployment rate is 8.4%, that means that 91.6% have income. And about half are still paying cash for the cars. Eliminate the people that are underwater as far as bills, and cannot purchase a car right now, that drops it to 75% able. The rest are no doubt watching their pennies. But what is one of the easiest ways to reduce your per mile cost? Reduce your gas consumption. And it just so happens that the prius is the best gas mileage vehicle out there. Guess which one is getting a lot of looks right now. I have 4 couples in my showroom RIGHT NOW either placing orders or are seriously considering the 2010.

 

Being on the front lines you certainly have a good guage as to what people are considering/buying...hope all 4 put an order in for 2010's at your place!

Curious...in terms of sales have you seen any change in used vs. new (regardless of model) since last year? Are you seeing alot more people looking to buy used?

 

The first one in Decatur Alabama was bought Wednesday evening; picked up on Thursday afternoon; and tagged and registered Friday morning. I had to wait in the registration line for 3/4ths of the owner's manual.

Buying now, I was able to get 5.7% interest rate on a 60 month note.

Bob Wilson

 

For me personally, I haven't seen much of a change. Especially in the toyota world due to resale value. As the number of low mileage 08's available goes down, the prices of the remaining ones goes up. Pretty soon, it makes more sense dollar for dollar to go with a new one.

Generally speaking, there has been a slight switch over to used from new though. Primarily in the domestic world though.

 

Local dealers have over estimated the demand. I received an email stating that the list of arriving GIII's were coming in at 2PM and that they expect thirty people to be coming in the door to put money down. If I wanted to get on the list I needed to get there. I told them to call me if anything was left.

They called the next day. I asked what happen to the thirty people rushing the door. "Well the email went out late...". They had several left to choose from. One week later they still have several left to choose from.

 

I don't see how that's possible. When people start seeing that a new one could cost less, then the prices of the used have to adjust or they won't sell.

 

You raise some good points and the sources are really interesting. I think the numbers are easily misinterpreted though.

Prius sales in 09 have been lower than 08 due to two things: lower gas prices and a new model coming out. Now, the new model has just been released and gas prices are inching upwards.

Thus I can easily see Prius sales this year being higher than last or any other year, that's what they seem to be doing in Japan and that country's been very hard hit by the recession.

In Japan the Insight was the first hybrid to ever top the monthly sales chart and that's a big indicator. You mentioned it in your third point about people with mortgages:

Mercedes, Porsche and SUV sales will be hit, but since the Prius is a complementary good, people who need a new car and can't afford a Merc but still want cool features will move towards the Prius.

It's really hard to predict right now, but given Toyota has already scaled back production, Prius waiting lists are not impossible, quite the opposite.

And about dealers still having cars a week after release: That's not that bad. We just have really high expectations. That the dealers on the site are selling so many cars already is a good indicator for sales, which other car is selling so fast before the advertising push begins and reviews from the major press start coming in?

 

status quo = NO!

...and, one thing you may not see as much elsewhere, but here in the Southern CA area, Prius is fast replacing folks' BMWs, Jags, Land Rovers, Mercedes... because they can downsize the budget and lose the expensive car and its lease/loan payments, and, be in a Prius and no one will KNOW they downsized. Why, they just went GREEN!

Dianne

 

Every dealership I have gone to in South Florida (6-7) have cars now, but they are all holding out for a higher fee. We will wait and see.

 

I have had 2 dealers offer me vehicle 500 - 1000 below msrp here in Montana. The only reason I haven't bought is they won't give me much for my 08 trade. It is paid off but I can't stomach losing 8k in one year on a car. So I wait, for gas prices to go up, for toyota to announce incentives or for something else that will narrow the gap.

 

Then they might choke on their carrying fees.

 

Re: status quo = NO!

am i the only person to whom this sounds really strange? somehow I just don't how someone who used to buy cars in the 40-60k range will suddenly get a car that's 25k. just as people who buy million-dollar homes don't go looking for a house that's selling for 400k.

 

Re: status quo = NO!

I'd guess it's the people who were posing, buying cars they financially shouldn't have been buying/leasing to project a certain image so now they can save face by 'posing' as being green. If so, does nothing for Cali's rep as 'fake' but in the end, who cares. They are better off financially and we're better off environmentally. Win win.

 

Re: status quo = NO!

Originally Posted by DianneWhitmire
...and, one thing you may not see as much elsewhere, but here in the Southern CA area, Prius is fast replacing folks' BMWs, Jags, Land Rovers, Mercedes... because they can downsize the budget and lose the expensive car and its lease/loan payments, and, be in a Prius and no one will KNOW they downsized. Why, they just went GREEN!

Dianne

Pretty simple...someone who used to buy 40-60k vehicles doesn't have a job that supports that lifestyle anymore. Big difference between $700 monthly payment and $400 monthly payment.

OR...

Somebody wants to green up their lifestyle!

 

Would you mind telling me which dealer has them now? Mine's coming in next week, but I'd love to see one in advance. Thanks!

 

And I suspect that's why you're getting 500 to 1000 below MSRP. How good a price you're getting is tough to measure when trade-in is involved.

Still, I am very encouraged by the information in this thread. My prediction - that Gen IIIs can be negotiated down to the true dealer cost plus small % profit by this fall - appears to be on track or slightly ahead of schedule.

This poster nails it. There is simply no comparison between summer 08 and summer 09. First, gas prices are nowhere near 08 levels, and are very unlikely to get there. Second, even if gas prices did climb above $3.50 this summer, the economy is not the same.

Last summer, the economy had not yet tanked. More people had the money to rush out and drop $25-30k, and for what? To save a few hundred in gas over the course of a year? The gas savings will not be so enticing this time around with the economy in the toilet.

 

There was a Pkg IV w/o Nav sitting on a lot up in Omaha as well ... Blizzard Pearl w/Dark Gray interior.

 

Fremont Toyota's first 2010. Blue Ribbon looks the same as 09's Spectra Blue Mica. Much nicer in person - junky camera.



Nifty fold of rear headrest



Probably same one as Thurs. night. Awaiting pickup at Piercey Toyota.



btw, common sales bluff over the phone is '2010 not coming for 2 months'.

 

I agree that the economy is killing car sales and a torrent of out of business dealers give away cars is not helping things.

Dealers are trying to unload everything but the Prius and they are not selling. I even looked at Hyndai's Sonata which blew away Toyota's comfort and ride. They are so strapped they are offering $3,000 rebates on their new model with no takers.

Gas prices will continue to go up because the value of our dollar is crashing. As that happens everything we buy will cost more and give the car buyer less cash to buy. Result, less sales of new cars including the Prius.

Toyota is going to have to chop its profit to sell cars, after the Prius new is off the vine. All the commercials in the world, can't make a guy, whose expendable cash just went out the window with the fall in the dollar, buy your car.