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Prius Gouging!

Not All the Post-Katrina Profiteering is at the Pump

By Joe Benton
ConsumerAffairs.com

October 4, 2005
Consumers received a hard lesson in the law of supply and demand at the gas pumps after Hurriances Katrina and Rita. A less noticed but no less harsh lesson in the same law is now being repeated in Toyota dealerships around the country.

• EPA Lowers Prius Mileage Estimate • Prius Ranks #1 in Owner Satisfaction • Toyota Aims for Even Better Prius Performance • Toyota Prius Named in Patent Infringement Suit • A Wild Ride in a Prius • First Chinese Prius Ready to Go • Prius Supplies Will Remain Tight Through 2006 • Prius Runs Amok After Stalling, Hits Tow Truck • Toyota Boosts Prius Price, Cancels Fleet Sales • Toyota Continues to Sell Faulty Prius Hybrids • Greens Call Toyota a Wolf in Sheep's Clothing • Toyota Warns Prius Owners of Stalling • GM Sells Subaru Stake to Toyota, Which Increases Stake in Hybrid Battery Supplier • Prius Profiteering as Salesmen Squeeze Consumers • Prius Turns Profits in Used-Car Market • Feds Open Probe into Prius Stalling • Prius Problems Traced to Software Glitch • Toyota Probes Prius Stalling Problem

All is not well in Hybrid Land.

In late August, before the hurricanes sent gasoline prices on a skyrocket ride, Vic reached an agreement with Toyota of Santa Monica to buy a new Prius. Vic returned to the dealership the next day to give salesman Michael Norris a deposit for the new car.

Norris told his customer that the car “should arrive in about three weeks.

As Vic waited for his new fuel-saving hybrid, two devastating hurricanes struck the Gulf Coast and sent gasoline prices through $3 a gallon, even higher in California. Vic thought he had struck a deal for his new Prius at a very good time.

Then the phone rang with a message from Michael Norris at Toyota of Santa Monica advising Vic that his new Prius had arrived.

With finances in hand, Vic headed for Toyota of Santa Monica. Vic says that when he walked in the door of the car dealership “the nonsense began.”

Salesman Norris told Vic that the new price for the Prius would be $1,700 more than the amount the two men had agreed upon. Norris refused to honor the paperwork or the quote outlining the previous deal. He claimed the agreement had the wrong name on it and was not correct.

Norris said that he had just returned from a convention of Toyota dealers and he told Vic that Toyota dealers were selling the Prius for as much as $4,000 more than sticker price. A mark-up of just $1,700 was a good deal, Norris insisted.

When Vic declined to buy the Prius at the new and increased post-hurricane price, Morris refused to return Vic’s deposit, Vic said.

Vic complained to Toyota Corporate Headquarters with no result. Vic says that he has the documents to prove that Toyota of Santa Monica backed out of an agreement and the dealership still has not refunded his deposit.

Similar tales of woe are being played out across the land as Toyota dealers try to squeeze every penny of profit possible from the suddenly-sought-after fuel-sippers.

Mileage, Computer and Tire Problems Continue

Nor is the school of hard knocks giving lessons only in Prius buying. Owning and operating the little hybrids has its pitfalls as well.

"My 2004 Toyota Prius is now one year old. The last two times I filled the tank I got 25 miles per gallon," said Dave of Laguna Woods, Calif. "This is not acceptable. The gasoline engine runs continuously. As soon as I power up, the gasoline engine kicks in."

Three trips back to the dealership produced no solution. They agree that the gasoline engine should not start up until the car gets up to 20 miles per hour, but cannot correct the problem, Dave said.

Judith of Lockport, New York, wound up sitting by the site of the road.

"I saw symbols on the dash that alerted me to a problem. The hybrid battery indicator dropped rapidly lower as I pulled into a safe area off the highway. I could put the car in park or neutral only but was unable to turn off power," she said.

The car would not move and had to be towed to a Toyota dealership.

"I had to leave the car unlocked with the power still engaged. I have no idea what caused this shutdown but believe my car is experiencing a problem with the computer system similar to what other Prius owners have experienced," Judith told ConsumerAffairs.com.

"I am now worried about trusting the car on a trip out of town. I purchased my 2005 model last November. I had no idea stalling or shutting down suddenly was a problem," Judith said. "This knowledge would have impacted my decision to purchase this hybrid. I normally drive high-speed expressways and cannot risk breakdowns. I have a lot of money invested in this auto and must have reliable transportation."

Nancy of Kalamazoo, Mich., is saving money on gas but spending it on tires.

"I have replaced the tires on my Toyota Prius four times," she said. "I have experienced the same issue as many others with Bridgestone/Firestone tires, which the dealership continues to insist upon using, despite all the problems."

"The third pair of tires Toyota replaced are supposed to be heavy-duty tires but the service technician either misinformed me or made a mistake. They were just the regular tires for which I paid the premium price," she said.

"The most recent pair are heavy duty tires that were supposed to last for 75,000 miles, or so Toyota told me. They lasted about 25,000 miles when I experienced a blowout, Nancy said. "Toyota then replaced those with another tire they claimed was heavy duty, but it does not say that on the side, and I think it is the same old, original tire."

Courtney of Hillsboro, Ore., has had a similar experience.

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