Visit any social media club related to vehicles and you will easily find popular posts related to horrible dealer markups. A shopper or a person in for service browsing inventory sees a window sticker with a big markup, snaps a cellphone image, and the narrative becomes, “This model has a $10K markup!” Maybe. But maybe if you actually shop for the model by visiting multiple dealers you will find that the true cost is right around MSRP or even lower.
We polled the 22,000-member Toyota RAV4 Hybrid club members on Facebook to see what they said they paid for the vehicle they purchased over the past 18 months or so. The vast majority paid MSRP plus destination and doc fees. Roughly one in four of the respondents say that they paid less than MSRP. About one in ten said that they paid over MSRP.
Related Story: Poll Results: Most Toyota RAV4 Prime Buyers Paid About MSRP For Their Vehicle
This report by owners doesn’t elicit the emotional response that the dealer markup posts do. Many of us are looking for the next thing to be outraged by and dealer markups are easy to understand. It’s downright “unlawful, despicable, unethical, immoral, and insulting” for these mean dealers to charge more than MSRP, Of course, if they want to charge less, that’s OK. No moral outrage for the dealers who offer to sell you the vehicle for less than the manufacturer suggests they do.
We’d love to bring you hard data from Toyota or its dealers on exactly how many owners paid more than MSRP and how many paid less. However, all manufacturers and dealer groups keep that close to the vest. They are not in a big hurry to tell you what folks pay for them. What’s the upside?
But when we poll owners, many vote, and then they also offer up a comment. For example, one owner wrote, “I paid just a couple hundred below MSRP…And as a bonus, I got about 3000 more for my trade and then I paid for it a year ago.” That owner had more details, but we’ll let you join the club to see it all.
Another owner points out that just because a vehicle is posted with a markup, it doesn’t mean you cannot negotiate. Some post what the markup on the sticker was and the lower markup they settled on after they negotiated.
Related Story: Huge Dealer Markups May Not Be What They Seem
Other owners point out their state. We think from participating in many polls of this type that the state makes a difference. Subjectively, it seems like the state with the biggest green vehicle push, strictest mandates, and biggest subsidies and special treatment of green vehicle owners, California, also has the biggest dealer markups.
If you purchased a Toyota RAV4 Hybrid in the past 18 months or so, feel free to comment on your experience below. If you do, please include some details like the state in which you took delivery and the trim you opted for.
Toyota RAV4 Hybrid Fast Facts:
The Toyota RAV4 Hybrid is one of the top-selling two-row crossovers in America. In 2021, RAV4 Hybrid trims (including the Prime) outsold the entire Ford Escape line.
The RAV4 Hybrid is an IIHS Top Safety Pick
The RAV4 Hybrid Comes Standard with AWD
The RAV4 Hybrid has an EPA-Combined fuel efficiency rating of 40 MPG
Toyota RAV4 Hybrid poll screenshot courtesy of Facebook. Top of page Toyota RAV4 Hybrid image courtesy of Kate Silbaugh.
John Goreham is a long-time New England Motor Press Association member and recovering engineer. John's interest in EVs goes back to 1990 when he designed the thermal control system for an EV battery as part of an academic team. After earning his mechanical engineering degree, John completed a marketing program at Northeastern University and worked with automotive component manufacturers, in the semiconductor industry, and in biotech. In addition to Torque News, John's work has appeared in print in dozens of American news outlets and he provides reviews to many vehicle shopping sites. You can follow John on TikTok @ToknCars, on Twitter, and view his credentials at Linkedin
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Comments
I have to pay $40,670.00 for
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I have to pay $40,670.00 for a toyota rav4 xle premiun hybryd 2021.tax $579.66 and documentation fee is $650.00. that's horrible for a toyota cox dealer at 3860 danbrook -burlinton NC 27215.
I bought a Premium LXE Hybrid
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I bought a Premium LXE Hybrid 2 weeks ago in elpaso TX. Paid MDRP . Got complimentary window tinting.
I got my 2021 Rav4 Hybrid Jan
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I got my 2021 Rav4 Hybrid Jan 3, 2022 and paid MSRP. I traded a 2019 Rav4 Hybrid with 23k miles and got $1300 less than what I paid 2.5 years ago! I only had to pay $350 in sales tax due to the huge trade in value.
I talked to a local Toyota
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I talked to a local Toyota dealer yesterday. I was looking for a plug in hybrid. I was informed that it would be 2 to 3 months and it would be $10,000 over MSRP.
I ordered a 2021 Rav4 XSE and
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I ordered a 2021 Rav4 XSE and took delivery 12/30/2020 in Denver, Colorado. I paid the sticker price of $36,000. In February 2022 and 15,000 miles later, I am very happy with my purchase.
Rav4xse hybrid Gallatin
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Rav4xse hybrid Gallatin Toyota. $38,980. $1000 markup due to limited stock. Fully loaded package color blueprint 18 inch black wheels. Love it! Great headlights I can finally see at night. Total was $41,980. Gas mileage awesome compared to my 2015 limited rav4 I gave my daughter. My 6th toyota give them to my kids.
Deal I'm working on a 22 Rav4
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Deal I'm working on a 22 Rav4 XSE Hybrid they're asking for $3k above MSRP, other dealers say their's is the same. Saying it's because the hybrids are in such demand.