Looking into buying a 2026 Prius Plug-in

I live in a HCOL city in California. Went into a Toyota dealer near me to test drive the 2026 Prius Plug-in SE and I liked it. I currently have a huge car that gets 17 mpg and tired of, but it works great and has no problems. So, I'm in no rush to buy, I would just love to downsize. 'd also be paying cash, but I'll finance initially if it gets me better pricing.

Long story short, dealer initially offered 47K OUT. After a few back and forths they came back with the following:

MSRP: 35,799.00

DOC Fee: 85.00

Tax: 4120.25

Non Tax Fees: 583.00

Balance: 40,587.00

Then after a little bit more talking the salesmen said, "What if I can get you OTD to 39K". I just wasn't ready to buy yet. So I didn't move forward. Is 39K OTD the best I can get in California? It just seems so high to me a base model Prius even if it is a plug in. I've also seen MSRP of other base model plug ins in the 34's. Any advice on the this deal or the market for plug ins would be greatly appreciated.