The new 2011 NHTSA crash testing program hasn’t been favorable to a number of vehicles. In general, that’s a good thing. Tougher testing not only means more distinction among vehicles, but also gives manufacturers incentive to make cars even safer. In 2010 and earlier, most cars received only 4-star and 5-star ratings. With the new tests, some popular models are getting worse overall results than before, especially in one or more of the five individual crash tests (two frontal impact, three side impact) that go into the overall rating.
We purchased a 2010 Toyota Prius before this crash testing had been completed. While the 2010 Prius was a “Top Safety Pick” according to the IIHS and it also did fairly well in the 2010 NHTSA crash tests, Toyota’s track record so far hadn’t been all that great for the 2011 NHTSA testing. Most notably, the popular Camry and RAV4 received very mediocre “3-star” overall ratings. While the all new Sienna minivan received a “4-star” overall rating, its 3-star rating for the frontal tests (due to only 2-stars for the female passenger dummy test) was not particularly good for a model designed with these new tests in mind.
So, I had valid concerns about how well our new Prius would fare. Happily, my worries were unfounded. It actually did a bit better than before, with a 5-star overall rating. Plus, 5-stars in all five individual crash tests, save the frontal crash female passenger dummy result that was 4-stars. So, thank you, Toyota, and great job with the new Prius!
I was also happy to see that the 2011 Toyota Highlander Hybrid received respectable ratings from both the IIHS (Top Safety Pick) and NHTSA (4-stars overall). This is one model I have considered to replace my Honda minivan. I was basically >< that close to buying one, having talked to a few local dealers recently and also having scheduled an appointment for a test drive this week. Within the past day or two, some local dealers started gouging on certain Toyota models, including the Highlander Hybrid, at least in some colors. Apparently, this may be in response to panic over supply concerns, due to the horrific disasters in Japan. Even though the Highlander Hybrid is made in southern Japan, numerous disruptions in the supply chain have halted production for many auto makers all over the country.
I had decided to shop for a vehicle sooner than I originally intended, hoping the purchase might help the Japanese economy in some small way. I had been checking stock and prices online almost daily over the last couple weeks to find one I wanted. I haven’t noticed any change in supply in the Chicago area, based on inventory searches at the buyatoyota.com website and others like cars.com and edmunds.com. Sadly, my informal survey of local dealers and online price quotes did show that a few dealers with stock raised their their prices significantly this week from invoice or even below invoice. In one extreme case, at the Carmax new Toyota dealer where we bought our Toyota Prius, their “no-haggle” published price is still a little below MSRP, but rose $3000 a couple days ago on the same exact vehicle that I had been watching as it sat on their lot for the last few months. While deals can still be found on light colors, I’m now shopping outside the Chicago area to see if the color I want can still be found around invoice as well.
Of course, these sudden “adjustments” will presumably not be going directly back to Toyota Corporation or Japan. I wasn’t originally looking to buy something until later this year anyway, so in the grand scheme of things, it isn’t an issue for me personally. Of course, when it does get to later this year, who knows, I might not even buy a Toyota. Sure, it may be simple supply and demand economics here in the USA, but it’s still sad to see dealers panic like this out of greed during a crisis of this nature. Even if the supplies do turn out to be significantly reduced for a long period of time, such price gouging may hurt Toyota sales in the process and could make a horrible situation in Japan even worse!
Someday, perhaps I’ll make a great spokesman for whatever new vehicle I end up buying, at least in terms of safety. For now, instead of buying that new car immediately, my wife and I are making a $750 donation to the Japan Earthquake/Tsunami fund through the Red Cross, matched by her employer. If you make a donation, please leave a comment! It may not be much, but I hope in some barely significant way, this makes up for the short-sighted actions of a few local Toyota dealerships. We have relationships with companies such as Toyota, Honda, Nissan and Combi that are based in Japan, and I know they can all use our support right now. We certainly hope the situation doesn’t worsen for residents or companies there.
(For Car-Seat.Org community members, there is also a Haiti earthquake relief fund accepting donations through the end of March and I am matching up to $750)
Thanks to Kolosso Toyota in Appleton, Wisconsin, I am now the owner of a Predawn Gray 2011 Highlander Hyrbid as of earlier this week. I’m glad some dealers are still willing to make good money without gouging. Given the situation with supplies and Chicago area dealers, I believe I got a great deal overall, though perhaps not as good as one I might have gotten if I was ready to buy a few weeks earlier. I paid just a bit over invoice and got a reasonable amount on my trade-in, too. In fact, I would not be surprised to find that in a few weeks, when no more can be found on dealer lots and Toyota’s just-announced price increases go into effect, mine may actually be worth more than I paid!
Well, kudos to those dealers who didn’t suddenly mark-up prices. And thanks again to those who donated here and on our forums! As it turns out, I’m working on a deal right now close to invoice price, but the dealership is a few hours away. There are still some dealers offering invoice price locally, but so far only on white and silver. We have white and silver vehicles now, so I was hoping for blue, black or even gray if possible. If everything goes as planned, perhaps I’ll have some new wheels by the end of the month!
Donated.
Thanks for the info savsmom! Like in any business, most people are honest and forthright, while a few will take advantage of any situation to make an extra buck. If you are still at a Toyota dealer, let me know and perhaps we can make a deal! I’m not opposed to flying somewhere if the price is right. Maybe I can even work some publicity/advertising into it!
Thanks for the response.
Anyone should feel free to contact me should you have questions about a vehicle or how to purchase one. Please remember also that those that work in car dealerships are people too, they have families, are hardworking and really aren’t out to “rip your head off” like you might think. Most salespeople want to give you a good deal, but would like to get paid for all the work they do as well and that is pretty hard to do when you are paid a % of the gross profit on a vehicle. For example – you buy a Prius for invoice, that salesperson only gets paid $50-$100 (depending on the dealer they work for) average that out with the amount of time the salesperson has invested in selling that car, said salesperson makes less than minimum wage.
Also, don’t put the blame on dealers. When gas prices surge and vehicles like the Prius, Corolla, etc become hot sellers – Toyota often jerks away all the incentives a dealer gets paid as well.
I too donated to The Red Cross.
I am proud to say that the Toyota dealer I use to work for donated $10,000 to The Red Cross after the disaster in Japan – not many dealers have done that, however the dealer I worked for isn’t the norm.
My former boss actually has a blog that addresses many of the issues that you are discussing here – please read it and you will find the media has really made it seem as though dealers are taking advantage of the crisis in Japan, when in reality prices on fuel efficient models such as the Prius as well as the Ford Focus and Fusion Hybrid (that have nothing to do with Japan) have been on the rise prior to the disaster due to gas prices. No doubt there are dealers that are taking advantage of the disaster in Japan, but please don’t judge all dealers to be that way when it simply isn’t the case.
http://www.oncars.blogspot.com/
Hi savsmom, thank you and everyone for donating and kudos to your dealership, too! I did not judge all dealers, as I said I am only certain of some in the Chicago area that I had been monitoring over the last few weeks. The increase I observed was exactly how I described it, all suddenly within about 24-48 hours from around invoice to MSRP. In most cases, this is on cars that had been on the lots for some time. Hey- if your old boss wants to hook me up with a pre-increase deal below invoice, perhaps we can work something out! Maybe he’s interested in some good publicity and online advertising? I have a lot of websites:-) I’m still monitoring supplies. I haven’t seen any change at all this week. There aren’t a whole lot of Highland Hybrids around, but they don’t seem to move well, either.
I donated right after the earthquake and tsunami happened.
I donated!
My parents got together with us and we made matched each other’s donation. Donated directly to the Japanese Red Cross http://www.google.com/crisisresponse/japanquake2011.html
I donated earlier this week.
Donated!
Shame on Toyota dealers. I donated $20 to Red Cross!