Are The Toyota RAV4 Hybrid Dealer Markups Slowly Dying Back To MSRP
Harutiun Hareyan's picture

Are The Toyota RAV4 Hybrid Dealer Markups Slowly Dying? Back To MSRP?

A recent question on a Toyota group showed that new owners of the 2022 Toyota RAV4 Hybrid are either getting it for MSRP or a very low dealer markup.
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In case you have not been to the dealership within the past 2 years, here is a quick lore update with the whole dealer markup situation. Pre-2020, you could buy a vehicle for under MSRP which was pretty common. Dealerships still made money off the incentive which the manufacturer gave and even then, the dealer made money off the service department. However, after the global shutdown of 2020, dealerships started to raise the price of a car even though the manufacturer said a different price for MSRP. Dealers call it a “market adjustment” but in reality, it’s really not needed. A dealer can still make a dime off the car even if they sell it below MSRP, but it all comes down to greed. How greedy you ask?

MSRP for a brand-new Mercedes EQS starts at about $105,000. However, dealerships won’t let it go for under $170,000. Why? It’s simple. Why let a very anticipated car go for MSRP or even below when we can mark it up and sell it for more and no one will say anything because it’s a highly anticipated car? Dealerships were created to stop auto makers from ripping you off. Today they are the ones taking your money for simply being a middleman.

Are The Toyota RAV4 Hybrid Dealer Markups Slowly Dying Back To MSRP

On the bright side, it turns out we are starting to see a little less of this as the world finally gets back on its feet. In specifics, the 2022 Toyota RAV4 Hybrid is a very highly anticipated car. In this day and age, owning a hybrid is like owning a 50-year-old 401k. Dealerships saw this and took advantage of the market by charging an insane amount of “market adjusted fees” and sell it to some millennial trying to save on gas. However recent buyers have stated that they are starting to see less and less of that.

On Facebook’s Toyota RAV4 Hybrid page, Kathy Jong said, “How much is everyone paying over MSRP, specifically the mark up by the dealer? Is this normal for all dealerships now?” That’s a pretty reasonable question considering the everyday buyer would probably want to know that information considering these troubling economic times. Everything has gone up except wages so the saying, “every penny count” is probably good words to live by. Let’s take a look and see what other recent buyers had to say.

Speaking of owners, check out how owners explained how they were able to take off their dealer installed roof racks on our recent article.

Brady Reeder said, “I paid zero markup MSRP plus tax out the door.” I think this is starting to become more common given that a lot of people are now trading in and getting a hybrid. This means that more and more hybrids are being sold, leveling out the playing field. If in case gas prices decide to go down, then I think maybe the over MSRP charge might come back. However personally, I see this as a threat on capitalism. The more and more people become greedy, the more the government would be forced to take action and stop companies from over charging in times of a crisis.

What do you think? How much over MSRP did you pay? Let us know in the comments below.

Harutiun Hareyan is reporting Toyota news at Torque News. His automotive interests and vast experience test-riding new cars give his stories a sense of authenticity and unique insights. Follow Harutiun on Twitter at @HareyanHarutiun and on YouTube at Toyota Time for daily Toyota news.


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Comments

$100 under MSRP.
We paid 1,400 over msrp back in May 2022 and we thought it was a decent deal since everyone wanted 3500 to 5K this was in So California. For the 1400 we got the alarm system and paint protection
I paid MSRP last month. There were only 2 dealerships that I could find in Maryland that didn't markup over MSRP.
Could you tell me what are the two dealerships in MD that didn’t markup the prices. Thank you in advance
The two that I found were Thompson Toyota (they just changed to Ourisman) in Edgewood, ask for Stanley if you call them. The other is Brown's Toyota in Glen Burnie, ask for Allan A. if you call them. Those are the two people I dealt with. I got my vehicle from Thompson only because they got one for me first.
The two that I found were Thompson Toyota (they just changed to Ourisman) in Edgewood, ask for Stanley if you call them. The other is Brown's Toyota in Glen Burnie, ask for Allan A. if you call them. Those are the two people I dealt with. I got my vehicle from Thompson only because they got one for me first.
Please, I would also like to know what dealers in Maryland charges below MSRP for their Toyota RAV 4 hybrid. Thanks.
I bought a new 2022 Rav4 hybrid limited for MSRP at younger toyota in Hagerstown MD. This only applies to a limited are surrounding the dealership. Outside that area they do, do markup. They do require a $500 down to hold a car once they find one (while it's being built or whatever the case).
I was just recently quoted $7,500 over the list price on a RAV4 2022 Prime. I refuse the deal anyone that pays over list price is insane
If you want a RAV4 Prime, I don't think you'll find any Toyota dealer to sell at MSRP. I just bought an XLE with lots of upgrades last month from Basil Motors in Rockport NY for $10k above MSRP and if I hadn't, others would have. I had been waiting for 7 months.
Last month, when I asked for a quote on a RAV4 2022 Prime at our local dealership, I was told their markup was $10k above MSRP. They are funny.
I bought my Toyota RAV4 from Redding California MSRP WAS 33.. I put 10g With the 7year warranty And I’m now paying 474 for the next 84 months which puts me right at 49,000
I'm not a big fan of paying over MSRP. I will probably purchase my leased SUV next year. The greedy dealers today may be cutting their own throats, as many customers would prefer buying a car online.
No such thing here instead Bay Area. Getting quotes between 7k- 12k at almost all Bay Area dealers
I went to Eastern Shore Toyota in Alabama to try and trade my Rav 4 for a new one. I was told that the MSRP is determined by the dealership. When I pressed to find out how much over the manufacture set the MSRP they would not disclose it saying that the dealership sets the price. Needless to say I walked away from the deal. The money is made in the service department.
Toyota is just the first manufacturer on my list of brands I will never buy from regardless of the quality of their vehicles. I realize dealer bullshit is not a direct reflection on Toyota, but they still are responsible for keeping the dealers in line. It really blows my mind that people are dumb enough to pay the mark up on a commuter car.
I hear that Subaru told their dealers not to mark up.
I bought a Toyota in Anderson , SC at MSRP. When I went to pick it up, the dealer said the price we agreed on was no longer the price. I left and Toyota was ZERO HELP in handling my complaint. There are plenty of great cars and my experience with Toyota has alienated me from their products. So sad.
In 2021 paid MSRP for a new R4 Prime.
$1200 below MSRP. Ordered Dec 2021 and delivered in July 2022.
I am consistently getting quotes $9k markup for a 2022 Hyundai Santa Fe. I'm in the Bay Area
The MSRP should be the price of the vehicle. There are consumer protection laws against price gouging. This should apply to car dealers. Selling cars via dealers is an outdated way of doing business. It's time to do away with these state laws protecting car dealers and let people buy direct from the manufacturer.
I agree with the statement. Why Tesla is dominating the EV market. Not only that Tesla pioneered EV market. But also the first company that sells directly from manufacturer to the consumers. A real NO haggle way of buying a vehicle. You pay the msrp. Add your options. Place a deposit. Then wait for your vehicle. It is that simple. It's really sad. Because I believe in freedom of choice. And support other car makers. So no one car company Monopolizes the market. But with all this Greedy Market Adjustment markups. Sadly it does not give the buyer much options. Preferably I am a Toyota, Hyundai, GM and Ford brand user. But with all the market adjustment markups. I might as well buy a Tesla.
I ordered an XSE in February, got it in April, and paid MSRP. I ordered it from a small dealership in Idaho. I had a five-hour drive from my home, but it was worth it.
I called several dealers in my home state of Idaho and was told they were not allowed any rav prime to sell. Only every state surrounding us. What dealer did you get one from?
I ordered a Rav4 hybrid limited on Easter Day and picked it up on June 9th. Toyota Vallejo was one of the few dealerships the put me on on a waiting list and only charged msrp when it came in. Very happy with my purchase.
We went to two dealers in New Jersey in March 2022; one wanted to charge 4K over MSRP and the other $7.5K over. We ended up buying used (at an elevated price). What the article neglects to discuss is that if a dealer normally sells 100 cars per month but now only has 33 cars per month to sell, he NEEDS to triple his profit per car in order to cover the fixed costs of his dealership. We may not like it, but greed isn’t the only factor.
Excellent analysis and absolutely correct well done.
The Toyota on Boston Road in the Bronx have the most ridiculous mark ups. I paid $3000 mark up on lease last year. Needed to return one and had no choice. Today there mark ups are $10,000. Beware of that location
Considering how much PPP money that were given to the dealers to keep them in business in 2020... This is how they repay the taxpayers that forgave many of their loans. I hope all of them get investigated for PPP loan fraud..

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