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Getting a stripped down Yaris for $12k seems like a deal to me, since everywhere else in the world the car's going for about $17k. What I'd do is use the $5K in savings and have the performance modification already lined-up to be added on. Tops on the list would be DVD/Nav system, lightweight alloys and tachometer.
However, I don't like the fact that the AC is a dealership installed option. I wouldn't want any back-water dealership that doesn't have any sense doing major surgery to the car and overcharging for it. Here in Toronto, this is not an issue since Yaris is a high volume product, but States side can be an issue.
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