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Toyota Bumps Up Price of 2007 Prius, Adds New Touring Model

6 August 2006

Toyota Motor is raising the US price of the Prius by 2.1% ($450) for the 2007 model, bringing the starting price to $22,175. Full tax credit will be available for purchases completed through September 2006. The approved tax credit amount for Prius Hybrid is $3,150.

Toyota is also adding a new Prius model: the Touring Edition. With a base price of $23,700, the Touring Edition offers enhancements such as 16-inch alloy wheels, a larger rear spoiler, High Intensity Discharge (HID) headlamps and foglamps, and a tuned suspension to enhance handling.

Prius prices can rise to more than $31,000 with options such as leather seats, a voice-activated navigation system and a rear-backup camera.

Although Toyota also increased the price of the 2007 Camry $250 (1.2%), Camry Hybrid pricing remains unchanged at a base MSRP of $25,900.

August 6, 2006 in Hybrids | Permalink | Comments (38) | TrackBack (0)

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They are trying to shift some of the market to those who usually buy Camrys. That way, they will exploit the massive marketshare the Camry has. The new package for Prius is to lure those with more refined tastes, and higher profits to boot.

it`s like with the lexus ls 400 in the 80`s, it sold perfectly and every year they just raised the price for it and it just sold better

This also narrows the gap between the Civic Hybrid and the Prius from a handling standpoint. Anyone who has been able to drive both realizes that the Prius gets somewhat better mileage, but the Civic is much more fun to drive. The Civic Hybrid was the "driver's" car, and the Prius was the "thinking person's" vehicle. Now, you can have your cake and eat it too.

Gas prices cannot get high enough to justify spending $31,000 on a tarted up Corolla.

Sure they can ... just wait a few years (if that) and the temperatures are already high enough right now.

to be honest, this is rather depressing. it's cool to see a new package with a better suspension and wheels (it's about damn time you know), but there's absolutely no justification for raising the starting price. i don't see how this "narrows" the gap between the prius and the HCH – if anything, it does the exact opposite. the civic is now significantly cheaper.

if the next model is going to be a plugin, what's that going to cost? $25k starting price?

hey remember the days when the starting price for the prius was actually under 20k? yeah. me too.

wait till Bush bombs iran how high will gas prices be then, thats if there is any gas at the pumps

They are raising the price by 2.1%. Isn't that less than the current CPI? If you want to be depressed, look at how much health insurance goes up every year. And it looks like we could be in a world of hurt this year as far as drowth, global warming and food prices.

And did I mention gasoline?

After all is said and done, only raising the price by 2.1% seems like a good deal.

lensovet: In 5 years there have increased the prices about 10% for the base and the touring costs about 20% more than that first model.

The original didn't get the tax credit. And I hazard a guess that Toyota may have made some small improvements along the way.

Of course Ford, GM, Chrysler and about 20 other makers haven't increased their price for their desirable hybrid sedans - those model names escape me.

I see the hybrid bashers are still flogging their foolish talking points. Must be frustrating seeing a technology they hate do so well.

Good to see the Prius just keeps getting better. Can't wait for the next gen model and its even higher mileage.

"wait till Bush bombs iran how high will gas prices be then, thats if there is any gas at the pumps"

I'll still be driveing my ethanol car, I grow my own fuel.

the original – at least the 2003 one – most definitely DID get the tax credit. my parents claimed it.
as for comparisons to the CPI, et al – how much has the price of a corolla gone up? how about the civic (not hybrid, plain old gas).
i dunno much about hybrid bashers, but i do know this: the 2003 -> 2004 price jump was nil, and that was two different generations of the same model. here, we're still with the same 3-year-old generation, and the price just goes up for no reason.
at all.

It's expected that prices go up, the cost of resources, labour, etc, all go up for Toyota. They have to recoup that to turn a profit and keep making these cars. Doesn't mean we have to like it, but that's life.

Unless you really grow and distill your own fuel, the impact is still there. Crude oil up, everything else up.

Crude oil up, people use more corn to make ethanol, ethanol demand up, price up, live stock feed up, your chicken and beef up too, transportation up, your everything else up.

And that makes that we are all in the same boat.

I dunno much about hybrid bashers, but i do know this: the 2003 -> 2004 price jump was nil, and that was two different generations of the same model. here, we're still with the same 3-year-old generation, and the price just goes up for no reason.
at all.

Adjusted for inflation, the price for the MY2007 model is only $245 more than when the MY2004 model was released.

But there is a reason for this price increase. Some of you don't like the increase - that is your feeling. It hardly supports "there is no reason".

The likely reason is that Toyota wants more money and thinks they can get it - companies often act upon such thoughts.

My home taxes, water fees, trash fees, taxes on internet access and electicity and car registration go up faster than inflation. And each of those costs is set by government.

My home owners association is a private corporation. It handles landscaping and parks, the fees usually go down each year.

K:

Good points.

Our property, water, garbage and school taxes have almost doubled in the last 5 years. The cost of electricity has gone up 15+% in the last 3 years. The price of natural gas and gasoline have more than doubled in the same period and much more is coming.

A 2.5% increase for a Toyota Prius is a lot less and acceptable.

You would have to drive 40k+ miles a year to justify paying the Hybrid premium rather than get a Corolla or regular Civic even with gas at $3.50/gal. Now when the plug-ins come out and your primary fuel is dirt cheap super off peak electricity it starts to look a lot better. Hybrid Technology is still in its early adolescence. I'm taking a wait and see approach. I’m still not convinced that a hybrid can beat a diesel for performance and total environmental lifecycle costs.

Don’t blame Toyota, its not like you can get a Prius for anything near sticker anyway. They are just capturing a bit more of the market price. I know they subsidized the production of the 1st Gen model.

Now if you had a plug in diesel hybrid that would be the bomb! 70mpg+ with a mix of Biodiesel and cheap surplus electricity. If the Middle East continues to burn it will happen sooner rather than later.

You would have to drive 40k+ miles a year to justify paying the Hybrid premium rather than get a Corolla or regular Civic even with gas at $3.50/gal.

Incorrect. I have no idea why people perpetuate such notions, as well as compare a small car with a midsize car. I also don't understand why hybrids somehow have to be economically justified down to the penny, but every other option on a normal car doesn't receive any scrutiny whatsoever. I also don't understand why people think a dollar to Japan is the same as a dollar to Saudi Arabia.

I'm taking a wait and see approach. I’m still not convinced that a hybrid can beat a diesel for performance and total environmental lifecycle costs.

Ah - now I see why. The diesel contingent. People who like breathing soot.

For people who can make rational calculations, ignoring trim differences and the absurdity of comparing a small car (Corolla) to a midsize car (Prius), and also the absurdity of ignoring trim differences, here are the payback periods for the Prius and Civic Hybrid compared to the Corolla and the Civic at $3.50, assuming a 7% sales tax rate:

Prius - 97,760 miles
Civic Hybird - 150,307 miles

Both of those vehicles have longer useful lives than that.

Now, let's calculate payback periods for any other option on vehicles - like air conditioning, mag wheels, leather seats, bigger engines, etc. Oh right - the point isn't being rational but to continue bashing hybrids, even though they're selling like hotcakes.

Toyota is selling every Prius it can make. It raised the price less then inflation. They could add $1000 and still sell every one. At some point the sales would slow and dealers would have to haggle on prices, yet Toyota would make even more money and still sell every Prius they could make. This move would take profit from the dealer and move it to Toyota. I think Toyota is being quite conservative with the price increases.

I'm waiting for the plug-ins, maybe if we get lucky a diesel plug-in! I run a 100% biodiesel Dodge truck for business an Echo (40 MPG) around town. These days with the horrific stories of the Iraq occupation and all the rest going on in the World, I hate putting gasoline in a car no matter how efficient it is. Pray for a diesel/plug-in/hybrid!

Actually, comparing the Corolla to the Prius is very fair - here are the specs -first is Prius second is Corolla. And regular gas is not (yet) $3.50.



Interior
Prius
Corolla


Front Headroom
39.1 in.
39.3 in.


Rear Headroom
37.1 in.
37.1 in.


Front Shoulder Room
55.3 in.
53.1 in.


Rear Shoulder Room
53 in.
53.5 in.


Front Hip Room
51 in.
51.9 in.


Rear Hip Room
51.6 in.
46.2 in.


Front Leg Room
41.9 in.
41.3 in.


Rear Leg Room
38.6 in.
35.4 in.


Maximum Luggage Capacity
16.1 cu.ft.
13.5 cu.ft.


Maximum Seating
5
5





I agree with Joseph Willemsen.
With the cost of energy on the rise, thus affecting every segments of the industry, especially the "just in time" supply delivery strategy that depends on rapid transportation of components on smaller and less fuel-efficient trucks instead by the boatloads or by the train loads to maintain a large inventory like the good old days, I don't see how the price of the Prius can be kept the same. The profit margins on more expensive vehicles like the Camry Hybrid or Lexus is a lot higher than on smaller and less expensive cars like Corolla or Prius, so these can absorb more manufacturing energy cost increase.

EPA Size Classes
http://www.fueleconomy.gov/feg/info.shtml#sizeclasses

Passenger volume (cu ft)
Corolla - 89
Prius - 96 [+7]

Trunk volume (cu ft)
Corolla - 14
Prius - 16 [+2]

Total volume (cu ft)
Corolla - 103 [compact]
Prius - 112 [midsize]

Most of the extra size is in the passenger compartment, specifically the back seating area. Anyone who has spent time in both cars knows this. The Prius has the same leg room as a Mercury Grand Marquis. It's just narrow, like the Corolla - and this is done to improve its drag.

Give it up with these tired objections. They've all been tried many times before and been shot down many times before.

You're still far better off than us here in Europe. The base model without taxes costs € 21.595 here in The Netherlands. In American dollars that's a whopping $ 27.800,-.

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