After I registered online for a purchase order and was instructed to finalize the order at a Toyota dealer, I was asked by Toyota of Palo Alto to place a $500 deposit on the lock-in price which included a $2000 markup on top of the MSRP. Did anyone else run into this markup? I went in with a blank check for the deposit but after hearing about the $2000, became disillusioned. Priusman, what is Toyota's position on dealers charging a premium like this?

My understanding is that the final price is still negotiated between the dealer and the buyer, just like the good old days :-) What's unique about the first batch of Prius is the ordering process, not the pricing. As the production ramps up, even the ordering process may go back to "normal".<br><br>FWIW, my dealer charges $40 "documentation fees" above MSRP, tax and registration. I guess it costs them $40 to write up the sales receipt :-) It's still a markup, but I didn't bother to argue.

I got the same markup at same place. I think that price is their starting point for negotiation. What do you think? Have you ordered yet.<br>Pestocat

I've heard that the cars cost close to $40K to build, but how much is the invoice cost to the dealer?

According to <a href=http://www.cars.com target=new>http://www.cars.com</a> the invoice price is $18534 with a destination cost of $455.<br>Pestocat

No, I didn't order mine. The $2000 markup drove me over the edge to holding off on buying.<br><br> Technological, no one can argue about how advanced the Prius is, but the styling, especially the front end is not to my taste. I admit, that somewhat of a trivial reason, but so other reasons I decide to hold off ordering a Prius is 1) no US car magazine has yet done a road test to verify the miles per gallon on the highway, which may or may not be significantly different from a non-hybrid. And 2), I prefer the GPS and cruise control options which are not yet available on this initial batch to the US. The Japanese version definitely do offer the GPS option (I have the Japanese brochure).

Thanks for the info.<br><br>So the stories from ealier about dealers trying to "help offset the $40k cost" by charging over MSRP is completely bogus. It's not like they're passing the extra money back to Toyota Corporate.<br><br>Personally, the idea of paying MSRP for a car is spooky, and I'd only consider it because of the new technology involved and the realization that it's a significant saving over the actual production cost. Paying over MSRP is against my religion :-) <br><br>If the market's that crazy, I'll keep my Corolla a bit longer.

Found a better price at Toyota 101 in San Carlos. Their price is $20K. No destination and no dealer markup.<br>Pestocat

I test drove the car and was impressed. But if Toyota thinks that a lot of folks will pay more than MSRP for a car they forgot to put Cruise control and the GPS system on, then they are mistaken. I'll just hold onto my Celica for a couple more years until we see the reliability stats, new options and colors (cannot believe they don't offer black!). It's a neat car, but from Toyota's standpoint, they have to convince North American drivers that this is a viable car. I don't believe letting the dealers gouge the public will accomplish this, especially if (heaven forbid) something turn out to be less than perfect for all these "early adapters" who are buying (though I wish them absolutely the best!!!!)

Don't accept the markup, tell them you offer $20K and that's it.<br>Pestocat