Consumer Car Buying Advice Blog

Toyota announced pricing today on the 2010 Prius that is scheduled to be in dealer showrooms sometime in May.

Timing is everything

2010 Toyota Prius

Here at Auto Credit Express, we’re amazed at what a difference eight months can make. Back in July of 2008 when gas prices peaked at over $4.00 a gallon, Toyota dealers couldn’t get enough Prius sedans to satisfy customer orders. Since then, of course, gasoline prices have fallen to about $2.00 a gallon and the industry, as a whole, has seen sales fall by as much as 40% or more. Prius sales were off 48% in November, 2008, year over year, and the brand hasn’t fared much better in 2009.

2010 Honda Insight

In addition to a challenging selling environment in general, the brand also faces increased competition from the new Honda Insight – a vehicle smaller and less fuel-efficient (according to EPA data) than the Prius, but priced $2,200 less than the Toyota. Looking at this scenario, what could Toyota possibly do to maintain supremacy in the hybrid wars?

It’s the price, stupid

In Japan, Toyota will be selling the current generation Prius at a discount alongside the new model. This probably makes sense in their home market, especially considering both are built there and Toyota does not have to incur transportation costs to float the old model across the Pacific.

Here in the U.S., the company has chosen to price the entry model more aggressively. Although the current entry-level model carries the same base price, $22,000 (not including freight) as the 2009 version, the level of standard equipment has been increased. In addition to a new, larger gasoline engine (1.8 liters versus 1.5) and higher combined horsepower (134 versus 110), buyers will also find the base model has been upgraded with an upgraded audio package, standard smart key system, cruise control, stability control and heated outside mirrors – a package that would’ve added an additional $1,000 to the sticker price to a 1999 model.

2010 Prius Engine (note exhaust heat exchange system)

2010 Prius buyers will also be the beneficiaries of improved fuel economy (51/48/50 versus 48/45/47 for the previous generation) as well as an engine now bereft of drive belts. Toyota engineers have also found a way to route the heat from the engine’s exhaust to more quickly warm up the engine coolant to speed up the interaction of the hybrid system.

To top it all off, Toyota has also announced that a new entry-level Prius, dubbed the Prius I, will be offered at a later date and, with less standard equipment, will be priced at just $21,000.

2010 Pricing

Here is the announced pricing information:

Standard Equipment MSRP

Prius I To be released at a later date $21,000

Prius II — 1.8-liter Atkinson cycle engine $22,000
– P195/65 R15 all-season tires with alloy
wheels & covers
– Smart Key (driver’s door) and Push Button
start
– EV, Eco, and Power modes
– Multi-Informational Display with energy
monitor and fuel consumption history
– AM/FM/MP3 CD player with six speakers and
satellite radio capability and auxiliary
audio jack
– Cruise control
– STAR Safety System and active front headrest
– Seven airbags including driver knee airbag
– Four-wheel disc brakes
– Tilt/telescopic steering wheel with audio and
HVAC
Controls with Touch Tracer Display
– Six-way adjustable driver seat
– Auto up/down on all windows
– Color-keyed foldable power heated side
mirrors

Prius III In addition to Prius II features: $23,000
– JBL AM/FM/MP3 six-disc CD changer with eight
speakers
– Integrated satellite radio capability
– Hands-free phone capability via
Bluetooth((R)) wireless technology

Prius IV In addition to Prius III features: $25,800
– Three-door Smart Key system
– Leather-trimmed interior
– Heated front seats with driver lumbar support
– Driver and front passenger water repellant
windows
– Plasmacluster(TM) ionizer
– Auto dimming mirror with HomeLink(R)

Prius V In addition to Prius IV features: $27,270
– 17-inch alloy wheels and P215/45 R17 tires
– LED headlamps with auto leveling and washers
– Integrated fog lamps

Optional Equipment MSRP Prius II Prius III Prius IV Prius V

Navigation Package $1,800 NA Available Available Available
Voice-activated
touch-screen
DVD navigation system
With JBL AM/FM/MP3
four-disc CD changer,
eight speakers,
integrated satellite
radio capability, XM
NavTraffic capability,
hands-free phone
capability and music
streaming via Bluetooth
wireless technology
and integrated backup
camera

Solar Roof Package $3,600 NA Available Available NA
Includes Navigation
Package equipment
plus power tilt/slide
moonroof with Solar
Powered Ventilation
System and Remote Air
Conditioning System

Advanced Technology
Package $4,500 NA NA NA Available
Includes Navigation
Package equipment plus
Dynamic Radar Cruise
Control (DRCC),
Pre-Collision System
(PCS), Lane Keep Assist
(LKA), Intelligent
Parking Assist(IPA)

The Bottom Line

Toyota has made some very aggressive pricing decisions on the new Prius which should make it very competitive with the new Honda Insight. With this new Prius ready to go on sale in May, we expect that Toyota dealers will be pricing current models at deep discounts in order to move them off their lots. If you’ve been waiting on the sidelines to see a drop in Prius pricing, now would seem to be a great time to make your move.

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