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2004-2009 Toyota Prius Prices Paid and Buying Experience

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Comments

  • midnightcowboymidnightcowboy Posts: 1,978
    Fred Haas and Sterling-McCall in Houston
  • What package Prius did you get? Who was your salesperson. I am just starting to do the Prius research so bear with me. I am in Vienna, VA
  • giraldogiraldo Posts: 16
    Does anyone have an estimate of when the tax credit is going to end? I'm saving up money, but i know that 3,000 is going to help a lot. anyways, i'm a college student and do not make a lot of money, do i still get 3,000 from the gov't, or do i only get a prorated amount.
  • JBaumgartJBaumgart Posts: 890
    Assuming you will not be affected by the Alternative Minimum Tax, you will get a tax credit of approximately $3,000 off of your 2006 taxes owed. So you would have to owe at least this amount to get the full credit. The best estimate as to when the full credit will expire for Toyota vehicles is 9/30/06, so you would have to take delivery before then.
  • jrct9454jrct9454 Posts: 2,363
    This is right on: credit should be good for Toyota at least through the 3rd quarter, but it cannot reduce your tax below zero. You have to have a tax liability of at least $3000 for you to reap the full benefit, and it sounds like this isn't going to fit the situation of someone with a limited income. [It's not like some other credits, where the IRS will send you money, even if your tax liability under the law is zero....and you have to take the car credit AFTER all other applicable credits.]
  • cooljwcooljw Posts: 47
    It's good to hear that Prius are going for less than MSRP in certain parts of the country - seems like this has just started happening in the past few months.

    I'm in SoCal, and unfortunately I haven't heard any stories of below-MSRP pricing here. Not sure why Prius demand is still so good here, must be the $3/gallon regular gas.

    Btw, for those of you new to Prius shopping, don't pay more than MSRP! You're a fool if you do.
  • thekingtheking Posts: 107
    Just bought 2006 pack 3 Prius in New Hampshire...I was given Full Kelly Blue Book (excellent condition) for my trade...Car itself was at MSRP with $95 doc fee..and I received a Lojack retrival and alarm for $450.....please comment !!!! :D
  • arissoarisso Posts: 1
    Let me understand your point. You are saying that I can only get a credit of $3150 (for the Prius) if I owe money to the IRS for 2006 ? What happen if I have a tax credit instead (home mortgage for example) ?
  • jrct9454jrct9454 Posts: 2,363
    This is hard to explain in this medium, because people often misuse terms in talking about taxes. Let me try:

    In the end, after ALL of your other deductions and credits, your tax liability must be over $3k for you to enjoy the full benefit of the hybrid car credit. It is the last credit you can apply, and it cannot reduce your taxes below zero - unlike the earned income credit, for example, or other credits that result in you getting money from the IRS even after you owe them nothing.

    To take a personal example, I estimate our 2006 taxes to be about $4500 after all deductions and other credits; thus, in our case, the credit reduces our tax to about $1500. But if our tax had only been, say, $2500, we would have a tax of zero, but it also means we would have "forfeited" part of the credit.

    First calculate your taxes under the current rules, with all deductions and credits - then you get to take the hybrid credit, down to but not below, a zero tax liability.

    And for the record, home mortgage interest is a deduction, not a credit. Deductions reduce your taxable income; credits reduce your tax liability after all your deductions are taken, and your "base tax" is calculated. This is an example of why this is not an easy discussion in this forum.
  • Do you happen to know if the IRS regs restrict the tax credit to one vehicle on a single or joint tax return? Suppose you buy two new Prius(s). Assuming you have a tax liability in excess of $6300, would you receive a $6300
    credit or just a $3150 credit?
  • jrct9454jrct9454 Posts: 2,363
    The draft version of the form shows room for multiple credit claims - as far as I can tell, there are no restrictions on how many credits you can apply, as long as it doesn't reduce your tax below zero, and as long as AMT doesn't apply [another big caveat].

    Form 8910 at the IRS website....noteably without instructions at this point, as they are still working on the details.
  • Can we take this one step further? I think part of the confusion - at least on my part - is the difference between tax liability and, when all is said and done, how much you owe Uncle Sam vs. how much you get back.

    "To take a personal example, I estimate our 2006 taxes to be about $4500 after all deductions and other credits; thus, in our case, the credit reduces our tax to about $1500. But if our tax had only been, say, $2500, we would have a tax of zero, but it also means we would have "forfeited" part of the credit."

    So your tax liability is $4500, the tax credit lowers that liability to $1500 ... and at that point, you factor in what you have paid in taxes over the year, right? If your tax liability without the Prius tax credit was $4500, and you had $4000 withheld during the year for federal taxes, then without the Prius tax credit you would have to pay Uncle Sam $500 ($4500-$4000=$500). But with the tax credit, the calculation is $4500-$3000=$1500 ; $4000-$1500= a tax refund of $2500.

    Is that right? It's not a matter of the bottom line - what you owe or what you get back - it's that your total tax liability, before you factor in what you have already paid in taxes, must be equal to or greater than the Prius tax credit to get the full amount of that tax credit ... right?
  • JBaumgartJBaumgart Posts: 890
    Although I cannot say with 100% certainty, I've got to believe that what you say is correct, i.e., someone would not be penalized simply because they had more money withheld throughout the year. The two keys are your eligibility (that you are not affected by the AMT) and your tax liability. Your eligilbility and the amount of your credit are not dependent on how much was withheld vs. how much in addtional taxes you would otherwise owe.
  • Thanks for the heads up. Why do you suppose Form 8910 still has a CY2005 header at the same time that it indicates the form is only applicable for vehicles placed in service after 2005? I also wonder about the langage: vehicle placed in service after 2005 since arguably you could purchase the vehicle in CY2005 but not register it/place in service until 2006.
  • I'm not too knowledgeable on tax matters and on th $3000.00 Prius tax credit i've received conflicting answers. Hopefully someone can provide the correct answer.

    One source stated that if my income were $50,000 I would deduct the tax credit and my gross income would be $47,000. My total tax liability plus any further tax deductions(not credits)would be based upon the lower figure.

    Another source said that if my total tax liability was $10,000(based upon $50,0000) applying the credit would reduce that to $7000. I'd like to think this is correct.

    Thanks for your help.
  • dude16dude16 Posts: 3
    anyone bought a prius in Canada
  • jrct9454jrct9454 Posts: 2,363
    ...I'm going to try one more time, then I'm done.

    -Your tax liability is the total tax as calculated on the form 1040. It is irrelevant for this discussion whether you had $1 in withholding or $1 million. Your withholding, or estimated tax payments, if you're smart, should approximately equal your TAX LIABILITY in any given year...otherwise, you're making the govt an interest-free loan. Lots of people do, which is why refunds are so high, but this is why the discussion gets complicated. When I say "tax liability" I mean your net level of taxation for any given year...NOT how much you owe as a result of underpayment, or how much they owe you on account of overpayment.

    -In the example I used, and cited by Cybernut, his logic is correct.

    Gross income minus deductions equals adjusted gross income. AGI is then used to calculate your TAX. Then CREDITS are subjected from the tax to give your NET TAX LIABILITY. [How much you have already paid in withholding or estimated tax payments then equals a refund or amount owed.] The hybrid credit is taken as the last credit to calculate your net tax....but cannot reduce your net tax below zero. And if you're subject to the AMT, you can lose the value of certain deductions and credits, including this one.

    If you have fully funded your tax liability through withholding or estimated payments, and if the credit applies, then yes, your refund would increase by the $3000 of the credit.

    -As for the form, the one online now is indeed for the 2005 tax year; there will be a new one for the 2006 tax year, which hasn't been posted yet. I was merely trying to address the question of multiple credits - the current form seems to allow for multiple deductions under the old law, and I know of nothing in the new law that prohibits multiple credits, as long as your tax liability doesn't go below zero. We shall see when the final version for 2006 is drafted.

    It's simple. DEDUCTIONS reduce your income that is used to calculate your tax. CREDITS are applied after you've calculated your TAX, giving your net TAX LIABILITY. How much you owe or get back is based on how much you paid during the year. Some people like big refunds; I'm not one of them, and try to arrange our payments and liability to match within $50 in any given year....but that point is not really relevant to the discussion.

    -Gross Income: $60,000
    -Standard Deduction [or itemized, whatever]: -$10,300 for joint filing
    -Personal Exemptions: -$3,300 x2 for a childless couple = -$6,600
    -Other Allowable Deductions: IRAs? Whatever? -$5,000

    -AGI= $60000-10300-6600-5000= $38100
    -Tax for a joint return = $4960 [Gross liability before credits]
    -Hybid Credit = -$3000
    -Net Tax Liability = $4960-3000 = $1960 (The hybrid credit CANNOT reduce this number below zero.)

    (Then, and only then, does the question of how much you've already paid enter the discussion. If you paid $5000 through the year, your refund in this case would be $5000-1960 = $3140.)
  • jrct9454jrct9454 Posts: 2,363
    ...before our host jumps in, and reminds us this discussion is supposed to be about prices paid, I'll mention that we bought our '06 Pkg 1 car in mid-February in the Portland OR area for MSRP. In our case, that was about $23k. Because we can take the full credit, both by timing and our tax situation for this year, our net cost for this car was about $20,000 US. I don't think anything else can touch it at this price for overall utility and economy in one package.
  • peteski1peteski1 Posts: 5
    Just put down a deposit on a #3 with Z1 (mats, cargo mat, first aid kit) and rear bumber applique. Final price is $23,300, almost 1K below invoice with the additions. Just couldn't find a pkg 1, and with these addtions, my price is pretty close to the pkg 1 MSRP, so I'm tickled! Spent a long while negotiating with several dealers in several states in the northeast, some of which are telling me they are going back to MSRP since gas is so high and demand is increasing again. Anyway, thakns to all who've posteed- it really helped me out!
  • cooljwcooljw Posts: 47
    It's great to see Prius going for less than MSRP in the Northeast. Unfortunately here in CA, MSRP is still the standard.

    Are there really that many more enviro-loving drivers here in CA? Is the Prius a very popular car in the Northeast? It seems popular here, but it's not like everyone wants one. I just don't understand the supply-demand gap.
  • gagricegagrice San DiegoPosts: 29,056
    I just don't understand the supply-demand gap.

    I think two things. Biggest is CA offers HOV privilege not offered in most states. Second snow is a problem with the Prius as it is sold. I understand if you put snow tires on they are pretty good in snow. Also, cold temps take a big bite out of the FE.

    PS
    It would pay you to shop online. There are deals and you could have a vacation driving your new Prius from where ever you bought it.
  • We ordered an '06 Prius, package #6, on March 25th and it was delivered on April 12th. Paid $1300 less than MSRP and got Kelly Blue Book for our trade-in, so I was happy with the deal. Miller Toyota, Manassas, Virginia. I checked their online inventory this morning ... not one Prius listed, but I'm sure they'll be getting more in.

    Hybrids (especially the Prius and Honda Civic Hybrid) are extremely popular in Northern Virginia, since they are allowed in the HOV lanes.
  • peteski1peteski1 Posts: 5
    What is offered as far as service agreements for basic maintenance, etc. I'm not planning on an extended warranty or anything rash, but what are people paying for the basic service agreement? Is this something I can get after purchase, when I get the car from PA back home in western MA? Any other agreements, etc that the dealer will try to get me to get when I pick up my new Prius?
  • Where are you located in California?
  • thekingtheking Posts: 107
    Now did you get Kelly excellent or good..there is about a $1200 difference in many late models! Would you be so kind as to tell us about your trade and its mileage!!
  • blkmambablkmamba Posts: 2
    Our Black Prius is supposed to be here tomorrow. We ordered 3 weeks ago. (Philadelphia area) We are buying at 500$ a month. We are trading in and breaking our lease for a 2005 Pathfinder. My husband and I debated over the $500 a month, but we figured we wouldbreak even or save$$$ by the time we added in the cost of gas. We are paying 750$ :cry: a month in just gas (he drives alot with his job) plus 438$ for the lease. Hopefully we will save $$$$$. Tara
  • dzdncnfzddzdncnfzd Posts: 34
    Has anyone purchased a Prius in the Chicago area recently? What are they selling for and how long do they take to come in?
  • hsirvinhsirvin Posts: 2
    Hello peteski1-
    Would you mind telling me which dealership in the Northeast gave you the price under MSRP? I am in Boston & I've found they are sticking to MSRP. One place in Maine said they'd give me $200 below, but that's not worth it for the 2 hours up & 2 hours back. Thanks!
    Holly
  • Been looking at the 06 Prius for a few weeks now, and have my name on a waiting list. Should be 2 weeks or less. My question is, I have been quoted from $2200 to $1699 for the 100,000 mile warranty here in California. What have others paid for the same warranty? Did your dealer negotiate on the price of the warranty?
  • jrct9454jrct9454 Posts: 2,363
    The answer is less than $1000. I cannot give you a direct link to this because of site rules, but if you do an Internet search for the Prius warranty, you will be lead to the source.

    There is a dealer in the Northeast who sells the factory extended warranty for $995. I also believe it is essential to have the extended warranty because of the complexity of this car, but do keep in mind you can acquire it any time before the 3 yr basic warranty expires, and from any authorized dealer in the country. This guy sells them by the boatload, and the dealership makes out on volume.

    Most dealers consider the warranty a serious profit-center item; do not buy until you've done some shopping around.
This discussion has been closed.