I just got back from my dealer for my 10k service. I was wondering around the lot and saw a used Salsa Red second-generation Prius selling for $28,500 with 21,162 miles on it. No extras. Unbelievable, right?

Curiously enough, I also saw what appeared to be a new black Prius for $26k

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Well the pricing for a used Prius is higher than it is for a new. Mostly due to demand and availability. Some people are willing to pay a few grand more to get it now rather than in a few months. on Intellichoice.com:
Used 2004 Prius 4 Dr Sedan
Original List Price $19,995
Trade In Value $15,795
Retail Value $21,450

It is strange that they were asking so much if they had a new one in stock.
I bought my Prius used. The orig. asking price was $23,330 for a base model. I did get them down to $19,984.

Haha. But, that' isn't an $8,000 markup

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Well yeah, but some people get greedy. And the bad part is that they may actually find someone to pay that.