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Charge as much as you can, when you can — that seems to be the mentality at Al Hendrickson Toyota of Coconut Creek, Fla. where the sought-after Toyota Prius C is marked up by a whopping $7,000.
A Twitter user with the handle Miami4me2c posted a picture showing the dealership’s “Market Value Adjustment” which brings the car, which carries a $19,900 base price, to a grand total of $27,834. That’s enough to buy the mid-range Prius hackback, but it doesn’t seem to matter because the Prius C is a hot-selling car.
Much to Toyota’s delight, it sold 1,200 units in the first three days of availability in the U.S., and demand continues to exceed supply. So much so that the automaker is taking steps to ramp up production by shifting resources and dedicating more space in its Kanto factory for the small Prius.
Despite that, dealerships like Al Hendrickson can try to scoop as many ladles of greed gravy as possible until the company manages to address the issue. It’s not uncommon for dealerships to mark high-demand cars up to recoup losses, but this case seems excessive.
We called the dealership looking for an explanation, but they refused to comment on the topic.
GALLERY: 2012 Toyota Prius C
Banned from selling cars after they were caught charging a $25,000 mark up for a used Mazda6, Ken Trung and Mohammed Shaikh could be back working on a car lot as early as next year. The two men weren’t just fired for selling the family sedan for $66,000 at a Orangeville dealer outside Toronto, Canada, Mazda Canada actually revoked the dealer’s license.
Carl Compton, executive director of the industry council, expressed that the regulator would prefer the two salesmen be permanently removed from showroom floors and away from vulnerable consumers. However, the two salesmen and their careers will be given a second chance. Ontario government tribunal chairman Harinder Gahir ruled the two salesmen are not chronic offenders and ordered a one year suspension plus a mandatory college certification course to reflect and familiarize themselves with legal and ethical obligations.
As Trung and Shaikh were fired last year, and face an extra year ban from conducting sales, Carl Compton added a comment, “It will be interesting to see how these guys account for the past two years on their resumes if they try to get back in at the end of their suspensions.”
President of the Automobile Protection Association, George Iny, also agrees with the ruling, noting, “It sends a good message. And if they come back, there should be further terms and conditions.”
[Source: The Star]
In a strong case of “caveat emptor“, a Madeline Leonard, who lives outside of Toronto, Canada brought her car to Orangeville Mazda, a local dealership to have her tires replaced. By the time she had left the dealership, she was on the hook for a grand total of $66,000 CDN, which included the cost of a new car, a 2010 Mazda 6, various dealer accessories (like rust proofing and window etching), taxes and an 8 year loan which added $16,000 to the cost of the car.
After complaining to the Ontario Motor Vehicle Industry Council (OMVIC), the local regulatory body, an investigation took place and found that the vehicle – which was actually a demonstrator with 3,750 miles on the odometer – should have sold for $41,000. The OMVIC has laid charges against Orangeville Mazda, which could face fines of up to $250,000. In addition, two dealership staff, including the salesman who sold Leonard the car, could face jail sentences or six figure fines. Buyer Beware.
[Source: Toronto Star]
Several reports of price gouging on the new 2010 Prius have been reported at Toyota dealerships across the country.
While the $4,500 rebate offered with the (now completed) cash-for-clunkers program made the Prius an attractive buy, many dealerships were apparently engaging in a little creative market value adjustment of their own, to capitalize on the in-demand hybrid.
According to DailyTech, several dealerships have reportedly been asking for thousands more than the sticker price. One Lake Placid, Florida, resident posted on PriusChat that his local Toyota dealer was asking for $4,000 over the sticker price, while a New Jersey resident claimed they were told they’d have to pay $6,500 over MSRP.
Not being the lazy sort, the folks at DailyTech called their local Toyota dealership, Suburban Toyota in Troy, Michigan and were told they’d have to pay $4,000 to $5,000 over MSRP to get into the last Prius that dealer had on its lot. They were even pressured to make a deal quickly before the car was sold to someone else.
DailyTech has since contacted Toyota but has not had a reply.
Currently the Prius is in short supply in the U.S. for two main reason. The first is that overall production has been slowed as a result of Toyota’s battery supplier’s inability to keep up with demand. In addition, the high demand for the car in Japan has Toyota filling orders in its home market first, as the unfavorable exchange rate with the U.S. dollar makes sales in Japan significantly more profitable.