Controversial Toyota RAV4 Dealer Markups Leave Fans Torn

I recently wrote a Torque News story about a Toyota RAV4 and its adjusted dealer price.

To be specific, this is a 2021 RAV4 Prime XSE in Supersonic Red.

Toyota RAV4 Prime Price

Dealerships have the freedom to sell most vehicles for whatever pricing they deem appropriate. Most times these cars, trucks, and SUVs can be sold for a discount.

With the vehicle shortage continuing longer than anyone would have hoped for, many vehicles are currently sold at a premium, or at a “market adjustment price.”

What prompted my first story was a posted picture by a member of “Toyota Rav4 Club.” This is a passionate and fiercely loyal Facebook online forum of over 86,000 RAV4 owners and fans.

I recommend you join this club if you like Toyota RAV4, RAV4 Hybrid and RAV4 Prime.

The window sticker of this specific RAV4 Prime XSE includes a $40,000 “Dealer Added Markup.” Final selling price: $96,442.

Personally, I find this specific example outrageous. However, with today’s automotive supply and demand, less available cars mean higher prices. If someone agrees to purchase at this price, then so be it. It was clearly a good enough price for them to agree to buy.

RELATED: My colleague John Goreham offers another perspective on huge dealer markups that is a really interesting read.

Ultimately, it is a person’s choice whether or not to buy their ideal vehicle at that price. Not for me to say.

Fans Speak Out on Toyota RAV4 Prices

Again, just because dealerships across the nation post vehicles at higher prices, people can choose to buy or not buy. Nothing is being forced on consumers.

If people do not feel this is a good time period to purchase a vehicle, I suggest they wait it out until the pendulum swings more in their pricing favor.

My initial story sparked many emotions in people and their comments were eye-opening.

Ken wrote. “Anybody paying "dealer added markup" is a sucker. Cars depreciate eventually. For the price of this Prime you can buy a Tesla or a Lexus. What fool would pay $96,000 for a Toyota.”

“My markup at Toyota of Portland was only $2999............but they did throw in a clear front end bra.” Added Charlie.

Tom commented with a sardonic edge. “I too have run into the "market adjustment" sticker. Almost every dealer said it was non-negotiable. Some dealerships are rather smug about it. I cannot way for the day when they are kissing a** to sell a vehicle and I can remind them!”

Parker is a salesperson and has an offer. “The dealership I sell cars for is selling all Rav4 Primes for $10k over, regardless of color, trim and optional equipment. Even have a Supersonic Red XSE on its way! If you’re in Colorado and want one message me.”

ATran made a recent purchase. Congrats ATran! “Just bought 2021 RAV4 xse hybrid out the door $47,400.00. That was a rip-off. I would say most “Car Sale Person” are heartless…”

Please remember ATran, that was probably your choice to be “ripped off” as you call it. Why did you purchase if you thought you were being ripped off? But hopefully you love your new SUV – the RAV4 Prime XSE is incredible.

“I thought it was outrageous when I bought my 2021 Rav4 Prime XSE in May that most dealers had a 10k markup! I found a dealer that didn't add a markup, that is why I purchased when I did. I absolutely love my car but wouldn't pay 96k for it!” Thanks for your comments, Heather. Congrats on your new RAV4 Prime – I love everything about the Prime.

More Toyota RAV4 Comments

Forrest gave insight from his recent dealership visit. “Went to dealership today. 8,000 markup on 2021 Rav4 XLE.”

Jeff had a very positive experience. “I think we had divine intervention in being able to purchase a 2021 Rav4 XSE for $53,000 and to do it in Ohio! A non-green state. It’s a long story how this happened but IT HAPPENED! Way below that $96,000 sticker vehicle!!”

“I purchased a new 2017 Rav4 Limited Hybrid in May of 2017. I paid $33K for it and was given a 0% APR loan. It now has 42,000 miles on it. I was offered $32,500 for it this morning from a National Car Selling Chain. A straight purchase, not a trade-in. I'm selling it to them tomorrow after I get the title from my safe deposit box. I was offered 8 grand more than I paid for it for my 2018 TRD Off Road Tacoma. The Tacoma will now be my daily driver.” Thanks for your insight, James.

And my personal favorite comes from Tim. “I don’t understand why people feel they have to buy now as opposed to waiting. Just wait it out and then these insane prices will be back to normal. Nobody is forcing them to do it now.”

Time for your Toyota RAV4 Comments

Thanks for reading my stories. I really appreciate it.

Do you have a personal story or experience while researching or buying a new or used vehicle lately? Was yours a story with a happy or a sad ending?

Remember, there are many fantastic dealerships trying to help you purchase and it is a challenging time for them as well. Salespeople are working harder than ever and have less vehicles to sell and less resulting commissions to help their families.

As someone who was a car salesperson for nearly 15 years, I know what they are going through. Please keep in mind they probably want this vehicle shortage to end sooner than later even more than you do.

See you next story when I discuss when 2022 Tundra arrives and show you how to get yours as soon as possible.

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