I think much of the "discounts" we are seeing now is simply the dealers taking up the slack resulting from the "loss" of the tax credit. The high demand in our area (I had to wait 3.5 months to get my 2006 Prius) I think was directly attributable to the deadline attached to the tax credit. Now that the full tax credit has been reduced in half (and it may even be less at this point - I haven't checked recently) I think demand softened a bit and the dealers are providing some "grease."

Also, you may want to check with some dealers but I know the ones near me indicated the hot seller after September has been the new FJ Cruiser. They can't keep them in stock and that may have also cut into some of the Prius' sales activity - Americans just can't pull themselves away from SUV type vehicles.

UTpiper