Several Dealerships Accused Of Gouging Prius Prices During Cash For Clunkers Program

While many of the domestic automakers offered steep price cuts on top of "Cash for Clunkers", many buyers chose to purchase vehicles from foreign manufacturers instead.  Leading the pack was Toyota, whose Corolla was the leading vehicle purchased under the program by the first week of August.  Even recently retired Sen. Bill Frist (R-Tenn.) traded in his 1991 Chevrolet Suburban for a brand-new Toyota Prius, joking, "You don't see a lot of Republicans driving a Prius."

Now it appears that a handful of Toyota dealers raised their prices to offset the government rebate and cash in on the high demand for its vehicles.

DailyTech has an exclusive inside look at some Toyota dealers' so-called "market value adjustments" (MVAs) on popular vehicles such as the 2010 third-generation Prius hybrid.  With the typical sticker price of the Prius coming it at around $26,000, many dealers across the country have been charging $3,000 to $10,000 markups, more than offsetting the "Cash for Clunkers" rebate of $3,000 to $4,500 in some cases.

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rigid - 8/27/2009 9:19:45 AM

+1 Boost

Aren't dealers suposed to make as much money as possible on each car? If you are going to get pissed about this then you need to realize these people must not have done any research before purchasing their vehicles. Also if you want to know who is gouging you look at annual profits (note your local dealer does not make much, but Exon and BP post record every year). Car dealers get a lot of greif and they are usually family owned businesses strugeling to get by as consumers have more choices and the manufacturers are trying to make as much profit as possible.

Also just wait till Toyota has to recall all these cars due to brake malfunctions. hahahahahah Toyta quality = BIG JOKE ON CONSUMERS!!!

Agent009 - 8/27/2009 11:48:58 AM

+2 Boost

The best way to address this is to simply walk out of the dealership, you always have that option.

inspirion7 - 8/27/2009 9:49:18 AM

+1 Boost

Human nature. Sad but true.

chris357 - 8/27/2009 11:53:16 AM

+1 Boost

rigid is 1000% right on the money. i think its funny how much time people spend on trying to get the best deal on the car just to save a few hundred but then go and pay 2500 for a couch that cost the store 500.. or a shirt for 75 that cost them 25.. its a joke. even with the dealer hold back MSRP is only around 10% which in all honesty is a pretty fair markup and then consider that storing 400 cars is not like storing 1000 shirts or couches or stereos it takes alot of land and huge property taxes.. you could go on.. and people wonder why we try anything we can to make a profit.

people dont understand that when I sell a 40k car for 100 in profit I as a salesman make 100 mini deal you arent paying to many bills with that..

and lastly people buying 26k cars and trading in their kids clunker to get it are not the exact demographic of who the gov was trying to help out. so if they can afford it and are willing to pay that much for a car then thats their choice .. and dont forget a market adjustment can happen with the demand is so high for somethign that people are WILLING to pay it.

WorldofLuxury - 8/27/2009 2:51:18 PM

+1 Boost

sigh...

If I were the dealer, I'd call those people whiny.
If I were the customer, I'd be pissed. lol

AlleVier - 8/28/2009 2:36:28 AM

+1 Boost

Bad practice? Not for Prius buyers. If they charge 40% over sticker, then Prius owners will feel 140% smug.

freshseth83 - 8/27/2009 7:21:23 PM

+1 Boost

jesus? you referring to obama? don't. He didn't appoint himself that and never said he was a messiah, never said he was a self-proclaimed leader. And Obama didn't do this himself either. Congress apporved it, that's democrats and republicans alike. So before you say 'jesus' moved these sales forward, you should pick up your bible and read that it says the governments are there for their appointed time. You probably didn't know that though did you? But you must think you know something by stating jesus.
huu76's post = ignorant

nguyenvuminh - 8/27/2009 10:16:51 PM

+2 Boost

huu, only 3+ more years of Obama (or as you call him, Jesus) so enjoy.