Most hybrid/EV companies run on deposits. With most “game-changing” products still deep in development, firms often squeeze deposits out of prospective customers to keep cashflow coming before their cars come to market. Not so with Toyota. The LA Times blog notes that Toyota has asked its Palo Alto, CA dealer to stop taking $500 deposits on plug-in Prius models that are still several years from launch. “We asked the folks at Magnussen (Toyota of Palo Alto) to back off a little bit,” Toyota spokesman Irv Miller said. “Let us get our product to market and figure out where we’re going with it before we start putting the cart in front of the horse.” Magnussen has refunded all 25 cash deposits it received, and has created a free waiting list that has already grown to 44. But Toyota’s warning to Magnussen isn’t stopping other Toyota dealers from collecting cash deposits. “I’ve got a few people in town who wanted to come in and leave deposits” on a plug-in hybrid, says Matt Meyer, Sales director of Toyota San Louis Obispo. “I’m not going to tell them ‘No,’ because I don’t tell my customers ‘No.'” Both dealerships say the deposits are fully refundable, but Toyota could still go after San Louis Obispo with a cease-and-desist. That Toyota is trying to reign in hype rather than spur it on is telling. Not only does it show that its future products will face astronomical demand, it also proves that short-term cash is not worth even a few possibly disastisfied customers. Contrast this approach with Chrysler’s un-product EV hype for a quick lesson in how white-hot demand for next-gen powertrains should and should not be exploited.
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Just goes to show who needs cash, and who doesn’t. I’m surprised GM isnt taking payment in full from those people who will want a VOLT.
“Not only does it show that its future products will face astronomical demand, it also proves that short-term cash is not worth even a few possibly disastisfied customers.”
Is this a fact? Or a Humble Opinion?
How can something show demand when it hasn’t been produced yet? This does show bias…
Why does the hammer fall on GM for promoting and marketing and this move by TMC is exactly the same to garner news?
But it does show that there might be some dis-satisfied customers.
Ah the land of fruits and nuts….
The divining rod of the Prius Nation.
How many commercials and product placements has Toyota produced about the plug-in Prius, monkeyboy?
And GM re the Volt? The answer is why the hammer falls on GM, whatever that means.
It could also be telling in that Toyota doesn’t believe they’ll HAVE a plug-in hybrid anytime soon.
BTW I lived about a mile from Magnussen in PA. That dealership was constantly a freakin zoo. Stopped in one time to actually test drive a prius about 2 years ago. Promply followed with “so should we start the papers”? I have no doubt that in super-wealthy PA (or Menlo Park, Atherton, Mountain View, etc) that that dealership literally welcomes people in the door and has them in their Prius in under 2 hours. a) because people there have serious love for the green image, and b) people there actually have enough money to pay it.
You’ll never see more off-the-wall cars, scooters, electric vehicles, bikes anywhere else but there.
Good dealership. Probably because they don’t have to try to sell a car. Its easy to treat the customer like kings when they walk in begging for you to take the money out of their wallets.
The approach toward the Volt and teh Plug-in Prius are totally different.
Toyota: Let’s not start selling cars that we haven’t even completed development on.
GM: Look at our wonderful new car that we promise will be ready by (insert date). Wouldn’t you like to buy one now?
Call me when there’s news of a Chevy dealership taking deposits on a Volt.
Until then, all this crap that GM gets over market and promotion is exactly that…crap.
…its Palo Alto, CA to…
Its Palo Alto WHAT? Dealer?
I’d bet that deposit doesn’t get you jack s**t. If and when this car shows up at the dealer, it goes to the highest bidder, list or no list.
So what is the point of paying $500? Just to get a phone call asking you to place a bid?
“I’m not going to tell them ‘No,’ because I don’t tell my customers ‘No.’”
So if I ask for a Yaris at invoice will you tell me no?