Filed under: Car Buying, Green, Toyota
Toyota to offer more incentives to Prius shoppers
After offering relatively mild deal-sweeteners (cash, financing and lease) to Prius dealers and buyers, Toyota saw sales of the hybrid shoot up 74%. So for April, Toyota will offer Prius purchasers package upgrades such as stability control, upgraded audio systems and a backup camera. Depending on what package is chosen, the deal could be worth up to $2,000.
As we reported in February, Toyota's goal is to sell 150,000 Priuses in 2007, which is 44,000 more than in 2006. If they're already offering as much as $2,000 in upgrades in March, we wonder what to expect by November.
[Source: Automotive News (Sub. Req.)]
Reader Comments (Page 1 of 2)
Elliott 9:15AM (4/05/2007)
"we wonder what to expect by November."
It might go back to having no incentives if any of the following happen and gas prices soar again:
1. A hurricane, or the threat of one shuts down offshore platforms.
2. Someone sneezes in the wrong part of the Middle East and an international war is started.
3. Everyone in China and India decides to go for a joy ride on the same day.
4. Congress raises or removes the limit on the number of people who can qualify for the tax incentive.
I'd love to have some insider info on cost vs revenue for the Prius. I think it is only profitable if you assume that a higher margin vehicle can not be produced at the same plant in its place.
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Mike 9:26AM (4/05/2007)
wait, Isn't this the tactic used with the tundra that fanboys claim is because the segment is used to it?
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Ron 9:33AM (4/05/2007)
I think they should put smaller wheels on this car. The 12-inchers that are on there now look way too big.
Seriously, the wheels are w-way too small on this car.
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felipe 9:33AM (4/05/2007)
still a dung beetle.
saw one the other day, modded w/new rims, painted calibers, lowered, all jazzy and i thought.....
ooooh a shiney dung beetle.
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Michael Karesh 9:39AM (4/05/2007)
Does anyone have the details for these incentives? Sounds like it could be the most complicated incentive scheme I've come across. I'll head over to priuschat.com, and see if anyone knows anything there...
The tax credit for a Toyota / Lexus hybrid did just fall to 1/4 the original amount. So that could well be part of it.
http://www.truedelta.com/models/Prius.php
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Michael Karesh 9:44AM (4/05/2007)
Here's the Toyota release, with the amount by package:
http://pressroom.toyota.com/Releases/View?id=TYT2007040454724
Factory-installed Options
New MSRP
Discount
Package #1 (HE)
Package Discontinued, Limited Supply Available
-----
Package #2 (HG)
$575
$600
Package #3 (HI)
$2,105
$600
Package #4 (HK)
$2,580
$800
Package #5 (NL)
$3,280
$2,000
Package #6 (NW)
$4,550
$2,000
Touring Edition
Factory-installed Options
New MSRP
Discount
Package #5 (NM)
$2,905
$1,750
Package #6 (NR)
$4,175
$1,750
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EnviroBob 9:49AM (4/05/2007)
Without the huge tax credit there is little incentive, other than $2000, for people to purchase. Consumers bought into the hype, expected to get 60MPG, are actually getting mid 40's and now realized that the additional cost to purchase a hybrid is not offset by the fuel savings as they had thought. It comes down to how much is the warm fuzzy feeling of being 'green' worth to the consumer.
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roadside observer 9:56AM (4/05/2007)
But ... but ... but ... I thought that Toyotas sold themselves WITHOUT incentives! I thought that Toyota was above the dirty little incentives game played by the domestics! Isn't that what the Toyotaphiles have told us for so long???
Oh, well, I guess the Toyotaphiles were wrong.
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Bob 10:21AM (4/05/2007)
Rebates on Toyota's is a gift from the oh mighty Toyota Corp. Ford/GM/Nissan/Chrysler/Mitsubishi/Mazda/Hyundia/Jeep/Honda/Kia/Volvo/Subaru/VW/Suzuki/Lincoln..etc. It's because they have to many in stock or they build inferior products? Or we are all told this by the media!!!!!!!!!!!!
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guido 10:48AM (4/05/2007)
Just a guess, but I think they fear the diesel competition and therefore try to bring as many hybrids to the market as possible, so they have a jump start. Just look to Europe. I can't wait to get those diesel engines here too.
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Shawn 10:48AM (4/05/2007)
Rebates is a gift from Toyota is like Iran releasing the hostages as a gift to the British.
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Michael Karesh 10:52AM (4/05/2007)
No one ever told people a Prius would get 60 mpg except the EPA. Were there ever even Toyota ads that emphasized the EPA numbers?
I'm not sure on this. What I am sure of is the number of Detroit 3 ads that stressed their cars' equally unrealistic highway fuel economy EPA ratings. "X cars that get over 30 mpg" and the like.
I also remember past ads from Chrysler that put the highway EPA number in large print and the city rating in small print. Same effect.
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sp 11:07AM (4/05/2007)
LOL... you guys realized that Prius doubled its sales in March? Sold more than 19,000
:-)
doing so bad... LOL.
As to the "incentives", they lowered the prices of optional packages... wow. Going down soon :P
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The Other Bob 11:20AM (4/05/2007)
"13. No one ever told people a Prius would get 60 mpg except the EPA. Were there ever even Toyota ads that emphasized the EPA numbers?"
No, but the dealers sell little oval, black and white "60mpg" stickers for the back of the car.
Toyota is a responsible for the 60 mpg lie as the EPA is for creating the opportunity.
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Scott 12:30PM (4/05/2007)
There were most definitely ads here on TV in New England touting the 60mpg number. Over the years I've seen them several times. Toyota, like any other manufacturer, took full advantage of the stupid EPA testing system and used it for advertising purposes. Finally for 2008 things get more realistic. As for the Prius, it really isn't a bad alternative to the common 4-cyl midsize and compact sedans being bought in huge numbers. So many consumers go out and spend >$20K on a 4-cyl Camry or Accord, why not just get a Prius and save more fuel? It will never be a bestseller, though, until it actually makes monetary sense to purchase one over a cheaper, non-hybrid alternative.
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shoe007 1:37PM (4/05/2007)
This "discounting" scheme looks complicated because you are seeing the same release that the dealers received. It is actually an MSRP adjustment. We actually received new labels for all of the Prius's we have. It is pretty straight forward. Toyota seems to do a pretty good job of pricing vehicles where the market will accept it and this is a different market than we had a year ago. Production is up. We actually have them available on the lot now, which hasn't really happened since the car's 2004 redo. They are still selling very well(at least at my dealership), but with the Camry Hybrid now being produced in Kentucky I think that freed up alot of capacity.
The fact remains that if the thought that this car was going to be cheaper to drive and own because of gas mileage it is not true. If you want cheap transportation with a "T" on the front,buy a Yaris. This car is about technology and it is a precursor to the things to come from Toyota.
Also Comment #1 from Elliot hit this one on the head, the second gas hits $3 a gallon(across the country) we will sell out again and the price will creep back up. Make no mistake Toyota is not desperate. They are just doing what they have always done, trying very hard.
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hotcams 1:39PM (4/05/2007)
If the Prius wasn't a hybrid, it would hardly sell and be worth only $15k max. C'mon people, cars in this price range are the Civic, Mazda 3. Without a hybrid feature, the Prius will sell under $15k compared to the competition. It's nuts that folks will shell out almost 12k - 15K extra just to save gas and get ripped off royally the other end. STUPID. Hybrid sales have yet to take off globally even in Japan and Hybrid mania is very much a US phenomenon.
C'mon how long will it take to spend $12k - 15k in gas? Buying a civic manual will be just as cost effective and you save $12 - $15 grand off a Prius.
We are paying handsomely to Toyota to finance their investment in this area. The current biggest automakers in the US, Matchbox and Hotwheels, got screwed real good.
For all the talk about improved fuel economy blahahahahaaha... EPA and NHTC findings show that MPGs have remained steady at around 20mpg for the past 100 yrs.
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Jon 2:17PM (4/05/2007)
You may not like the way the car looks, and you may think everyone who owns it is a smug bastard that drives slow in the left lane -- but it's just blowing smoke to claim that you can get a car comparable to a Prius minus hybrid for 12-15k less. A couple thousand less, yeah.
On the other hand, Intellichoice rated it the top car in 2007 in all these categories: Best Retained Value; Lowest Fuel; Lowest Operating Costs; Lowest Ownership Costs. Consumer Reports finds it unique among hybrids in that the average owner will recoup the added cost of the hybrid system.
Ok, so now we wait for the traditional post about the cost of battery replacement . . .
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hotcams 2:52PM (4/05/2007)
2007 Prius $22,795 (MSRP base)
2007 Prius $28,677 (MSRP loaded)
2007 Civic Manual $14,810 (MSRP)
2007 Altima Hybrid $24,400 (MSRP w Toyota Licensed Synergy Drive)
I have a buddy wait 3 months and finlly acquire a Prius for 31 grand excluding tax title license at the height of the mania and that was a good px.
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synergeist 2:52PM (4/05/2007)
A "car" made for the talent-less Hollyweird crowd and other hippy-dippy leftists. Remember, the stalling out on the freeway is a gas-saving feature, courtesy of the Toyota Service Hugs (not recalls).
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