Low Gas Prices, Troubled Economy Slow Toyota Prius Sales
In an inventory search on Cars.com, we found 1,241 for sale within 500 miles of Chicago. That compares to just three Toyota Camry Hybrids in the same area and 124 Ford Escape Hybrids.
Now, our inventory only searches what’s advertised, but it’s still one indication of changing tastes. Last month, Toyota sold 8,660 Prius models, down from 16,737 in November 2007 and its lowest monthly sales figure in years. However, this summer’s highest total was also lower than last November, at 14,785 sales in July. That was during the height of the gas crisis, when Toyota didn’t have the capacity to build enough to meet demand.
Toyota sold 2,174 Camry Hybrids last month, but given inventory it looks like demand is higher for them despite smaller sales numbers. The only two Toyota models to see an uptick last month were the Sequoia and Lexus LX 570, which are two gigantic SUVs.
What does this mean? Does it say gas prices have turned buyers off the most well-known hybrid on the market? Are hybrid buyers more likely to wait out bad economic times to buy a new car than other shoppers? Or does it say that building hybrids doesn’t mean people will pick them over standard gas-powered vehicles that cost less?
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Is this an indication also of the lack of tax rebate for purchasing this vehicle.
Are people buying the Camry and Escape because they still get the tax rebate?
Please note that there is a new Prius that is coming, so that may be part of the explanation of lower sales.
Bernard,
Since the general population hasn't seen nor know about the new prius and it won't be out for months, I don't think that is a major factor here. It would definitely be a factor for those "in the know" or good researchers and I agree would account for some waiting/loss of sales. But not enough to negate a near 50% drop in sales.
I am considering a Prius but want to see what the new Honda Insight will be all about. I'm also aware that there's a new Prius around the corner. Lastly, though I want to drive a hybrid it does NOT mean that I want to go without a moonroof. I have heard rumors that there will be one on the new Prius AND it will contain solar panels to harness sunlight power as well. Any info on this? What about the Insight? Do you think it will have a sunroof option?
The sales are down because guys like me. I would never pay all those dealer's markups that they want you to pay for Prius. Economically it is not making sence. I will never save on gas enough to pay for Prius the price of the Highlander. I would rather get Highlander, better yet -Sienna with all the comfort and enjoy the ride, instead of thinking, "where am I going to sit my mother-in-law?".
Tony,
I don't think you're seeing any dealer markups of anything right now.
Now word on moonroofs etc until detroit in January when both will debut.
Dave, I just checked carsdirect.com
Often they are pretty good indicator of what price to expect in the dealer.
Prius Base
MSRP Price: $24,095
Invoice Price:$22,696
Target Price: $25,095
Of course, they expect to make $500 (I calculated that this is what they get by using numbers from them and from dealer directly on other models). So the dealer price on Prius would be $25,595 = $500 over MSRP.
May be I am in the sky. But I don't thing that even now dealers would give up Priuses under MSRP. They may be don't have long lines for this car at this time but, clearly, this money maker for them. Why would they sell them under MSRP?
Correction:
"So the dealer price on Prius would be $25,595 = $500 over MSRP."
should read:
So the dealer price on Prius would be $24,595 = $500 over MSRP.
Dave,
you guys, are PROs. Why don't you try to go to the dealer and negotiate one Prius. Then report to us how it went.
I looked at one local dealer's web site. They have 12 Priuses (unlike 2 or 3 few months ago) but all of them 28-29K.
To me, a 28K Prius better have wheels made of gold. I better pay $5000 extra to the oil company and drive comfy car then suffer inside Prius for the same extra $$$
The Prius is old, and the economy is bad, of course its sales are down. It still sells way more than the Camry or Escape hybrid. When the new one arrives, the waiting lists will continue.
Tony,
There are many reasons we couldn't do that. #1 being it would be unethical.
There are other metrics out there about how much over MSRP people are paying which I believe is what tony is pointing to above, although I'm not sure if its taking into account destination charges etc which would be over $500.
Our local inventory in Chicago is significant for the Prius. I would guess they would not be charging any markup.
According to Toyota's own site, you can equip a Prius north of $29K. So the fact you see those prices doesn't mean they're overcharging.
I have looked at 2 Prius, and neither were priced above MSRP. The dealer appeared like he might even come down some.
"According to Toyota's own site, you can equip a Prius north of $29K. So the fact you see those prices doesn't mean they're overcharging. "
On this instance I didn't mean overcharging. I just mean that NO WAY for 29K Prius in my garage. I would get 22K Accord or even Camry if I was going for sedan. I would get 18K Sonata rather then 29K Prius. But best-Sienna.
Even at 4 bucks a gallon, it takes an awful lot of driving to make up the cost difference between Prius and a Corolla, or other efficient car, in gas savings.
I'm guessing that a lot of the Prius sales during the gas price spike were to people dumping very inefficient SUVs, etc and who cold afford the cost of the Prius.
Today, with tight credit, worried consumers, and lower gas prices, people may not perceive any real advantage in spending much more for a Prius than they would for a compact or midsize sedan.
it isn't just about the money. think carbon footprint and how GM must get a prius of their own.
Carbon footprint? How green is the process of making/recycling the batteries that the Prius uses?
Looking at the November sales 2007 vs 2008 from "Green Car Congress," we find:
% change Make Type
33.0% Chrysler Aspen
31.0% GM Malibu
4.7% Nissan Murano
-8.3% Toyota Prius
-12.8% Toyota Corolla
-18.6% Ford F150
-23.5% Ford trucks
-30.7% Honda cars
-31.5% Ford cars
-32.3% Toyota cars
-32.9% Honda trucks
-36.5% All cars
-36.9% All trucks
-37.3% Nissan cars
-37.4% Toyota trucks
-39.0% GM trucks
-42.0% Chrysler trucks
-44.0% GM cars
-49.0% Nissan trucks
-59.0% Chrysler cars
-67.8% Honda HCH
Two of three sales increasing vehicles affordable by the most well to do. The Malibu is the only middle scale vehicle.
Of the sales declining, the Prius is sinking slower than the honorable competition and even the less expensive Corolla. The Honda Civic hybrid appears to be in deep trouble but Honda has announced a new hybrid follow-on and that may cannibalize HCH sales. We'll see.
Bob Wilson
its the economy. i know a few people who are in the market for a car... had financing lined up from 2 or 3 different sources last spring, couldnt decide on what to get. actually bought a mini-van then backed out.
(they both make good money, rent and only have a middle of the road car payment in the $300 range) but now cant get a loan.
In November, I wanted to buy a Prius, but the dealers were on their high horse and would only knock off $300 off of MSRP. They thought they were doing you a favor by giving you that much off. I ended up with a Camry LE for almost $4500 below MSRP. There was no way I was going to recoup the difference until about 6-7 years from now... and who knows what will happen with the battery when the warranty ends... There was a story that most priuses are locked up on a lot in Long Beach CA. Toyota is trying to artificially create higher prices for the Prius. Too bad.. they should wake up and look at the market conditions...