Toyota Motors (TM), announced on Wednesday, that it will be cutting the price of its 2014 plug-in Prius by about 6% when compared to the price of the 2013 model.
The car manufacturer will be cutting the price of the 2014 plug-in Prius by at least $2,000. This will have the car starting at $29,990. The Advanced model of the same car will cost $34,905, which is about $4,000 cheaper than the 2013 model. The cut in prices is likely meant to attract more customers to the Prius. Toyota has sold around 187,000 of the Prius in 2013. Of these sold, only 8,000 were the plug-in model. The plug in model of the Prius has benefits to it, such as having access to the car pool lane in California, being eligible for a $1,500 rebate in California and also being eligible for a federal tax credit of up to $2,500. The price of the plug-in Prius could be what’s holding it back. Toyota and other companies offer cars that get 40 mpg or better on the highway for less than $20,000. This can make it hard to justify the extra $10,000 for the plug-in Prius, which gets 95 mpg with its electrical engine and 50 mpg when only using gas, reports The Los Angeles Times.
Plug-in Prius sales were down last month by about 30% when compared to the same time last year.