Hybrid Madness: Used Toyota Prius Averaging Higher Transaction Prices than New Models

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Seyth Miersma on Thu, 07/31/2008 - 09:14
Filed Under: Greenformance, Fuel Types, Hybrid
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These are booming times for small car makers and sky-high fuel prices are causing some pretty interesting situations for the sale of high mpg vehicles.

Toyota can’t make copies of its Prius hybrid fast enough for the swelling demand, that’s bad news for Joe Consumer who’s just trying to cut down on his commuting costs every week, but great news for the dealers who are handing out the keys. J.D. Power has calculated that so far this summer (through the first three weeks of July) the average new Prius has spent only five days on dealer lots, while used 2007 model cars last only a bit longer at 20 days.

That super-quick turnaround time is impressive, but what’s even more startling is the premium at which buyers are willing to purchase used Prius. The average new 2008 MY Prius is selling for an average of $26,672, while used 2008 models with less than 10,000 miles on the odometer are selling for nearly $1300 more, averaging a sale price of $27,945. Even 2007 cars, with on average more than 22,000 miles racked up, are commanding $26,396 – just $276 from the new cars’ average.

Power’s data for June and the first three weeks of July backs up anecdotal information claiming that some Toyota dealers were offering to buy back used Prius at sticker price.

With Toyota recently enacting plans to ramp up production of the hybrid, and with a new model on the way , this boom time for dealers isn’t likely to keep up indefinitely. But we’d guess that most Toyota salesmen are looking forward to a flush summer.

+ J.D. Power

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Anonymous

Ok, here's a scenario for you. Instead of paying 26,000 for a prius, why not buy a $20,000 car and use leftover 6,000 for fill-ups. At $4/ gallon that is approximately 125-150 fill-ups, which would last the excessive driver 2.5 - 3 years. See my point? I don't see the point of a prius, unless you are trying to simply do your part for the environment.

Thu, 07/31/2008 - 18:53
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Mena

People are being really reactionary right now. There's not much thought going on, IMO. If you are really trying to save money because of high gas prices, buying another new car to replace your previous new/newer car (that you just took a bit negative equity hit on by trading it in before it's paid off) is NOT saving you money.

Here's the deal. You calculate how much money you spend a month in car payments, gas, maintenance, and insurance. Find another car with better gas mileage. Add up the monthly cost in car payment, gas, maintenace, and insurance for that car. If all of that is at least $100 LESS (preferably $200 or more) than the amount of gas you spend on your current car, then you'll be saving money by getting another more fuel efficient car. If not, then stick it out till your car is paid off then buy another car.

Why $100? Because anything less than that can be cut from other parts of your budget. Coffee, movies, dinners out, cancelling some of the more expensive DirecTV packages, etc.

Fri, 08/01/2008 - 11:40
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Keith

Good reporting. It's just amazing how irrational the market can be for hybrid vehicles. People aren't buying with their brains. There are so many good values out there in fuel efficient used cars that you could purchase for a lot less. Check out my website usedcars.about.com for more information.

Fri, 08/01/2008 - 10:47
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Anonymous

Hm... would rather Buy a Hummer or a Range Rover. At least they are more environmentally friendly than a Prius.

Plus Hybrids don't save you money at the pump. To actually see savings, it takes 5 or more years, depending what hybrid you bought.

Fri, 08/01/2008 - 20:01
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Anonymous

"Buy a Hummer or a Range Rover. ...they are more environmentally friendly than a Prius.
Plus Hybrids don't save you money at the pump"

That's just sad. Really. And I bet you'll vote, too.

Sun, 08/03/2008 - 16:47
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Len

One factor in the high resale value of the Prius in California ( which accounts for a very high percentage of Prius sales in the US) is the commuters sticker which allows driver-only occuppied cars to use the carpool lanes during commute hours. That sticker which expires in 2011, is now longer being issued.

Fri, 08/01/2008 - 21:58
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jms

I can't afford to buy a Prius now. If I could, it would be for the reason that I want to reduce the amount of American money that gets sent to countries like Iran, Saudi Arabia and Venezuela.

Fri, 08/01/2008 - 23:23
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c in california

Saving is worth it if you drive a lot.
Wife drives 100mi a day (25k+/yr). Our BMW=5 gal; Prius=2gal. Savings = 3gal = $12/day. That is about $3000/year savings. (and ... very little depreciation!).
If we drove less or had a alternate car that got better mpg, it might not have made sense to buy new, but it was an easy choice.

Mon, 08/04/2008 - 11:06
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steev

I have a 2005 Toyota Prius and it is my second hybrid car. The first was also a hybrid, a 2002 Prius. These cars are exceptionally great to drive. I've had absolutely no problems with either of the cars. Prius drivers know we don't have to charge the batteries but people who don't drive these cars seem not to know this. Also, these cars have plenty of power and speed. I could easily exceed the speed limit here in Central NY State if I wanted to and found myself once going 80mph when I passed cars. I was surprised when I saw how fast I was going because I didn't feel I was that fast.
As far as mileage, in winter here in upstate NY, it gets quite cold and I find I obtain about 40 mph during very cold weather. In summer, I get easily over 50mph, as much as 53mph. I will never buy anything but a hybrid as long as I am driving.
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We had mentioned this before, when the original technology suggestion was vague, but it seems hybrids are definitely on Max Mosley's mind. And they are about to be on the minds of the fans of the sport. According to a survey that FIA conducted, fans want more overtaking in Formula 1. FIA president, Max Mosley, sent a letter to F1 teams to prepare them for the upcoming technology discussion, including the
possibility of hybrid technology entering the mix.
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