2006 Prius

[john@fsds.net]

Does anyone know when the 2006 Prius comes out? What are the improvements if any?

[Tideland Prius]

November-ish. There's a tax CREDIT if you buy after 1/1/06 as opposed to a tax DEDUCTION. New standard features include a tyre pressure monitoring system and advanced side airbags.

This is taken from PriusChat

FE- 50 State Emissions, Included w/All Packages

GY #1- Driver and Passenger Side and Curtain Airbags (your basic TRAC car)

HE #2- Rear Camera, AM/FM CD 6 Speakers & MP3, Smart Key System

HF #3- RC, AM/FM etc., SKS, All the airbags

HG #4- Vehicle Stability Control, RC, AM/FM etc., SKS, All the airbags

HI #5- VSC, RC, JBL AM/FM, CD Changer, 9 Speakers, Bluetooth & MP3, SKS, Security Alarm & Homelink, All the airbags

HK #6- VSC, HID's, RC, JBL etc., SKS, Alarm & HL, All the airbags, Front Fog & Driving Lamps

NL #7- VSC, HID's, RC, JBL etc., SKS, Alarm & HL, All the airbags, Navi, Fog & Driving Lamps

NW #8- VSC, HID's, RC, JBL etc., Natural Leather Seating Material, SKS, Alarm & HL, All the airbags, Navi, Fog & Driving Lamps

Exterior/Interior Colors- Super White (040) G/B, Classic Silver Metallic (1F7) G/G, Magnetic Grey (1G3) available w/04/2006 production G/G, Black (202) G/B, Barcelona Red Metallic (3R3) G/B, Driftwood Pearl (4S2) B/B, Silver Pine Mica (6U0) G/B, Seaside Pearl (8S2) G/B. The G or B indicate the interior colors (Gray or Beige) that will be available for either the cloth or leather. G/B means Grey or Beige is available for both, G/G is Grey only for both, B/B is Beige only for both.


My dealer said that this is firm, although there's speculation that leather may become available in other packages w/o Navi. First 2006 cars will be produced 10/2005. Pricing TBA.

[lookieloo]

I am extreemly interested in purchasing a Prius. I will be test driving this weekend. My question - do I wait another month for the 2006 models to come out, or go for the 2005?? It sounds like there were huge improvements from the 2004 to 2005, do you think that will be the case this time around?

Any hearsay on pricing, a big jump in price for the 2006 model??

FYI, I love this site. Very informative for someone that's looking to buy.

[Tideland Prius]

wait. If you purchase after 1/1/06, you'll get a tax CREDIT as opposed to a tax DEDUCTION right now. Also, the new one has mp3 capability if that's important to you. As well it'll come with a tyre pressure monitoring system as standard along with advanced side airbag system.

Also, leather's available. Otherwise, the 05 will suit you just fine =). Hope you'll enjoy the test drive =)

[lookieloo]

As someone who isn't a car expert, what's the dummy explaination of mp3 capability??

[john@fsds.net]

Thanks fo the info, we are on the list for a 2006 Prius with the same package #5 equipment for 2005. According to the dealer here. peole are lining up to purchase one now. How long before others jump on? Also, is Toyota working toward a hydrogen fuel cell car?

[Tideland Prius]

right now. We're not sure if it can play MP3 discs (i.e. you burn the mp3s onto a disc rather than burning an audio CD) but we're certain that it will allow you to plug your mp3 player.

Not long? hehe I don't know. But you're smart to get in line early.

Toyota is working on a hydrogen fuel cell car. It's called FCHV (or sth similar). It's based on the current Highlander. It's on lease to several companies and universities in US and Japan alongside the Honda FCV vehicle (based on the Honda EV Plus)

[BobHickling]

Originally Posted by lookieloo

As someone who isn't a car expert, what's the dummy explaination of mp3 capability??

We may be getting a little off topic here, but in a nutshell... It isn't about cars, it's just an audio thing. MP3 capability means that the CD player knows how to play CDs that have been made with compressed music (MP3 is a compression format). That means that you can get about 15 regular CDs on one disk. To take advantage of it, you need to be able to burn CDs. If you have a computer, it may be worth looking into how to make your own CDs. Almost any computer can burn CDs these days. You just need a little software to be able to move your music collection into your computer and then burn them to CD in MP3 format.

[ConchDiesel]

MP3 compatibility is a nice feature. I have about 150 songs on each CD and listen to them at home on my CD/DVD player. It would be nice to do that at home.

[windstrings]

if you are on the list for a 2006 already..... whos list are you on?.. the particular dealer you are buying from?, or does toyota themselves have a list?

And if the packages are different?.. wouldn't you need to be picking a 2006 package?

[ConchDiesel]

Tideland and others,

I have a tax rule document that states you get a Credit if you buy in '05 and a smaller credit in '06.

Here's the info:



Dear Client:

You asked me what, if any, are the income tax benefits available for electric vehicles which aren't available for vehicles generally.

There are two income tax benefits specifically available for electric vehicles: (1) a tax credit and (2) an approximate tripling of the annually adjusted dollar limits that generally apply to depreciation deductions for business automobiles and light trucks and vans. An electric vehicle is one powered primarily by an electric motor drawing current from rechargeable batteries, fuel cells, or other portable sources of electrical current.

Tax credit. The tax credit is equal to 10% of the cost of the electric vehicle and is limited to $4,000 for vehicles placed in service in 2004 and 2005. For vehicles placed in service in 2006, the credit is reduced by 75%, i.e., is limited to a maximum of $1,000.

The original use of the vehicle must begin with the taxpayer and the taxpayer can't have acquired the vehicle for the purpose of reselling it. The credit is available whether or not the vehicle is used in a business or an income-producing activity.

A taxpayer's “basis” (i.e. cost for tax purposes) in the vehicle is reduced by the amount of the credit. This reduction may create or increase taxable gain when the automobile is disposed of (and, if the vehicle is used in a business or other income-producing activity, decrease depreciation deductions and possibly decrease or eliminate deductible loss on disposition.)

The credit must be “recaptured” (i.e., in essence, be given back) if the vehicle is either (1) modified to be primarily non-electrically powered, (2) used predominantly outside the U.S., (3) leased or owned by a tax-exempt or governmental organization or by a foreign individual or organization or (4) disposed of with the taxpayer knowing or having reason to know that, after the disposition, (1), (2) or (3) will occur.

You should also be aware that a taxpayer's exposure to the alternative minimum tax (AMT) may cause the benefit of the credit to be deferred to a future tax year, causing a reduction in the credit's value. We should consider whether the AMT is likely to adversely affect you in this way (and, if necessary, consider ways we can plan other of your activities in order to prevent the AMT from being a problem.)

Also, because a taxpayer can elect not to take the credit, we should—if you decide to purchase an electric vehicle—decide whether you are one of the relatively few taxpayers for whom it is better not to take the credit.

The credit won't be available at all for vehicles placed in service by the taxpayer after 2006.

Depreciation limits relief. The approximate tripling of annually adjusted dollar limits on depreciation applies to electric automobiles placed in service before Jan. 1, 2007. Thus, for example, if you buy a new electric automobile for use in your business and place it in service in 2005, your depreciation for 2005 can be as much as $8,880 (compared to the $2,960 cap for a regular passenger automobile). The depreciation limit for an electric auto in the second year (2006) is $14,200 (vs. $4,700 for a regular vehicle). In order to qualify for these approximately tripled limits, the electric vehicle must be produced by an original equipment manufacturer (i.e., rather than converted to electric power after manufacture.)

[JMcPhee]

Conch ~

The letter you posted is correct about tax credits, for ELECTRIC vehicles. It does not apply to HYBRID vehicles. You may want to readdress your question to your tax advisor.

Gasoline/electric hybrids are not eligible for electric vehicle tax credits. However, some are eligible for clean-fuel vehicle incentives. Vehicles in the table below may be eligible for a "clean fuel" deduction of $2,000 if placed in service by the end of 2005.

2005 Ford Escape Hybrid

2005 Honda Accord Hybrid

2003-2005 Honda Civic Hybrid

2000-2005 Honda Insight

2006 Lexus RX 400h

2006 Toyota Highlander

2001-2005 Toyota Prius

* Vehicles approved by IRS as of June 27, 2005. Other hybrids may be approved at a later date.

New Hybrid Car Tax Credit (2006)
The new energy bill allows a $400 to $3400 tax credit depending on model. A credit is much better than a deduction since a tax credit directly reduces taxes owed, as opposed to simply reducing taxable income.

On A Per Automaker Basis, Tax Credit Begins Slow Phase Out Once 60,000 Hybrids Are Sold
The tax credit is set to expire in 2009, but for many hybrid models the incentive will end much sooner. Once an automaker has sold 60,000 hybrid vehicles the tax credit for that automakers’ hybrids is slowly reduced over the next five consecutive quarters.

Hybrid Car Tax Credit Phase-Out Details

• Beginning January 1, 2006 and up through the quarter that the automaker sells 60,000 hybrid vehicles, 100% of the credit is allowed.
• 100% of the hybrid car tax credit continues for the next consecutive quarter.
• The next two quarters after that, the tax credit is reduced to 50% of the original hybrid car tax credit.
• Then, for the next two quarters after that, the tax credit is reduced to 25% of the original hybrid car tax credit.
• Finally, the hybrid car tax credit for that automakers’ hybrids drops to zero.

"Some people have calculated that the Prius is the winner in all this with a hybrid car tax credit of $2750, while the Accord may only receive a $400 hybrid car tax credit. The American Council for an Energy-Efficient Economy has listed their estimates for the tax credits. They also have the Prius coming out on top, but with a tax credit of $3,150, the Accord as $650..."

http://clk.about.com/?zi=1/XJ&sdn=hybridcars&zu=http%3A%2F%2Fwww.aceee.org%2F transportation%2Fhybtaxcred.htm%23table


Jim

[mcbean]

I just purchased a 2006 Prius and I'm confused about the 2005 tax deduction. The IRS doesn't have the 2006 Prius on its list of deductible cars for 2005. It seems to be somewhere in limbo, or the law was written before the 2006 was available and it just isn't listed for that reason. (I hope.)

As for the MP3 capability, it means there's an aux input so you can plug your iPod or MP3 player or XM radio directly into the stereo system. There's an input in the console between the two front seats. where you'll also find a nice little hiding place for your iPod and a "cigarette lighter" power input as well.

[Tideland Prius]

mcbean, try your luck at priuschat. Sorry, I can't answer it since I'm in Canada

[Prius1]

Mcbean - I'm thinking you ARE right and might just be out of luck for the deduction and for sure you bought too early to get the tax credit too. Let me know if you find out differently - below is my story and what I posted a few days ago - you might find this interesting?

Well I finally did it. Here is the story. About 4 months ago I went to my local Toyota dealer and left $200 and an order for an '06 with a #8 package in Driftwood. I went back last week (12/08) to check on the progress and within 2 days I went from "you are the 1st one on the '06 list" to ". . . my Pirus won't be in until 'maybe' mid-February or later". Angry was an understatement and I demanded my deposit back after I had done more homework.

Seems as though the biggest dealer on the east coast asked for 8 of the #8 packages on the Prius with everyone sold - he will be receiving only one (which obviously is sold). He is the only dealer out of 35 dealers that I called and talked with who are actually getting ANY of the #8 packages on a Prius. So my next best option was to search out an '05 with a #6 package. Right now there are a lot of them around - everybody is waiting for '06 to get the tax credit and they aren't buying anything! There are a quite a few Prius around right now (almost all are '05s but I actually found 1 dealer with an '06 #4 package in red - NOT SOLD).

I had several dealers actually willing to take a deposit now on their '05 and also agreed to hold the car for delivery until 1/2/06 - BINGO tax credit time! Do your homework - the dealer I bought not only agreed to hold the car until 1/2/06 he took $700 off of the sticker price! He did tell me that this was the first Prius he has ever sold that did not sell for sticker or even more than sticker and it was his last '05. What do I care - I got my Tideland Pearl, a color that is being discontinued, with a #6 package, saved $700 plus beat the price increase AND got the FED/IRS $3,150 tax credit too! By the way the car had been at the dealer for 3 days prior to my purchase (or should I say hold/deposit - actual purchase will be 1/2/06).

If you want a Prius and your name has been on a list that doesn't mean crap except your dealer has probably been drinking beer at your expence using your deposit money and the interest that it could have been earning. $200 is nothing these days but I understand some dealers are requiring $500 to $1,000 deposits! If they would just tell you from the beginning that they can not order anything from Toyota that would be a different story. Instead they just lie about it, make things up, and take advantage of people. I know all dealerships aren't like this but of the 35 that I contacted more fell into this category than those who did not.

Christmas came early for me and Santa won't drop off his gift until 1/2/06 but I will have my gift in time to get the tax credit! Good luck to all - especially if your name is on some kind of stupid "Toyota dealer Prius list" - if it is, they are lying to you too!

Happy Holidays!