Greedy Toyota dealers are profiteering from the new RAV4
The price of gasoline in the US has exceeded $4.51 per gallon, which is $1.33 more than a year ago. In California, the average fuel cost reaches $6.15. Because of this, many drivers are looking for ways to save at the pump, and some of them are turning their attention to Toyota’s hybrid models.
Unfortunately for buyers, the brand has a reputation due to dealers who inflate prices. This has already happened with the Land Cruiser, Tacoma, and even the Camry models.
Read also: Dealer markups on the 2025 Toyota Camry reach $5,000
Now the situation is repeating itself with the new RAV4, which is available in hybrid and plug-in hybrid versions. The most striking example is the dealer Toyota of Greensboro, which added a $15,435 “dealer adjustment” to the 2026 RAV4 XLE Premium. Thus, the price increased from $40,934 to $56,369, and this does not include the administrative fee of $799.
Markups on hybrids and plug-in hybrids
Dealer Magnussen’s Toyota of Palo Alto added $3,999 to every hybrid RAV4 in stock. There are 16 such cars in the showroom, meaning buyers are being cheated out of $63,984.
For RAV4 plug-in hybrids, the markup is even larger. Most models have a “dealer adjustment” of $12,995, although the Woodland version received only $4,995 — how generous of them, isn’t it?
Florida dealer is also keeping up
Dealer West Kendall Toyota in Florida sells the RAV4 Woodland Plug-in Hybrid for $66,503, although its recommended price is $49,211. This amount includes a dealer fee of $949, a documentation fee of $548, and a license plate fee of $75. The remaining $15,720 is, obviously, a huge markup.
Buyers should avoid such dealers, as many other showrooms adhere to the recommended prices. A little extra effort can save thousands of dollars.
The situation with markups on the new RAV4 demonstrates how rising fuel prices affect the demand for fuel-efficient cars, but at the same time reveals the unscrupulous practices of certain dealers. Although Toyota does not control the pricing of its independent dealerships, such incidents can undermine trust in the brand. Buyers should carefully compare offers and avoid dealers with excessive markups, as there are those on the market who sell at the recommended price. This also serves as a reminder that in conditions of high inflation and rising fuel costs, consumers need to be especially cautious when choosing a car dealership.