GM's New Lure

Well, perhaps not anyone on this board. But, consider the following:

Edmunds (excluding Mfr's destination charge):

National Base MSRP: $21,725
Invoice: $20,006
TMV® (What Others Are Paying): $23,896



CarsDirect:

MSRP: $22,305
Invoice: $20,921
Target Price: $24,805

 

Who do you think is paying for than MSRP for used prius? Are there some, sure, but do you think the average 2-2500 over MSRP? I would say the data is flawed. I know on buy bids that say a 2004 Prius has dropped $1500 - 2000 since dec 1st.

 

What secondary market are you talking about ?

Geographic scope ?
Numbers of cars ?

 

I am talking about purchase bids on Toyota Priuses in the Midwest. Early Sept, within reason, you could almost name your price and now there is quite frankly alot of hesitation about even getting a bid.

 

I know that's what you would say. :lol:

 

Wow!.. if your really a dealer I would think your in better touch with all this than I?

But I will just give you my opinion. It may be worth nothing!....

I think resale will be back on par as soon as the credit runs out.

The only reason sales went crazy whereas people were paying "more" than msrp and even paying more for used prius's than they originally cost was because of lack of supply to meet the demand. Plus the fact that gas went to over 3.00/gal.

Toyota is cranking more and more cars out now and will continue. Theoretically if they ever catch up with demand, they will cool down to some degree. But Malorn, I'm not sure they will be able to keep up with demand for quite a while yet?

This is a snowball rolling downhill!... the more they make, the more are on the roads and the more people find out about them and are bedazzled by thier charm and reputation so as that "they too" want one!

For all I know, it will get worse!... there will always be a flux back and forth.
But this time next year.... the prius could be even harder to get to meet the demand?... If gas goes back up "and it will" it could be worse next year than it was this year!

The thing that really helped aggrivate things this time was the tax credit... and everybody wanted to wait till after 06.... Now that 06 is finally here with the 3150.00 tax credit, the 05 is the last think people are thinking about?.. But thats temporary!

The other vendors have till 2010 to deplete their tax credit and it looks like Toyota will hit their 60K mark before the end of the year?..

How can you say the poteintial buyer pool is shallow?.... there are tons of buyers and growing every moment? The only reason the used market has backed of is because of the tax credit for the new ones. Once that is gone, we will again be back on even ground.

 

Is this dealer to dealer trading ?

How many used cars are up for bidding on any given day on average ?

It seems somewhat obvious that when a new car was months away, used cars would command an outrageous premium. Now that a customer *only* waits a few weeks, the speculation has died down.

I think a more useful metric to gauge supply/demand is dealer new car pricing. I have heard a couple of stories of people getting ~ $500 off msrp since January, but msrp remains very very typical, despite close to $1,000 in price increases since the car's introduction TWO years ago.

That must be unprecedented for a mass produced car.

 

These are dealer to wholesaler or another dealer bids. I am just reporting what is going on in the wholesale market which is usually a reflection of the retail market.

You are right about the values in late summer and early fall, I have never seen a model spike the way the prius did. The sudden slump in prices may be in part a reaction to that unusual bump.