Toyota Prius Prime Hits $50,000 Due to Dealer Markups

Crazy dealership markups have long been a pain point in the United States, especially for limited or special-edition cars. Yet, it’s quite a surprise to see this trend affecting the Toyota Prius Prime, a mainstream nameplate.

A Reddit user, GalacticKitty, shared their experience of being asked to pay around $49,000 for a 2024 Prius Prime XSE Premium. Before adding fees for destinations, trims, and packages, the car was valued at about $40,000.

The user’s breakdown of the dealership’s computation revealed $3,166 in port and dealer packaging fees and $1,100 for handling and delivery. Notably, a $5,000 markup, labeled as “market adjustment,” was added to the price.

According to Markups.org, other states have seen dealers request up to $7,500 above the MSRP. Given these figures, car shoppers might consider looking at other brands.

For instance, the Tesla Model 3, which has seen a recent price drop, is available for less than the Prius Prime XSE — and that’s before factoring in the $7,500 federal tax credit for EVs.

While comparing the hybrid Prius Prime to the all-electric Tesla Model 3 might seem like comparing apples to oranges, transitioning from a PHEV like the Prius Prime to an EV isn’t far-fetched. It’s also worth noting that a PHEV with a 44-mile electric range and EPA evaluation should not be pricier than a comparable BEV, especially from a premium brand.

The Prius Prime is available in SE and XSE variants, with base prices of $32,675 and $35,930, respectively. Despite the high markups, options like approaching dealerships further afield for a lower price or waiting for market adjustments might be worth considering. However, it seems dealership markups aren’t going away anytime soon.

Some brands, such as Tesla, use a direct-to-consumer model, effectively eliminating dealer markups.