The updated Toyota RAV4, one of the most popular models in America, has encountered the problem of inflated prices from dealers at the start of sales.
Examples of Inflated Prices
A quick online search revealed numerous cases of price inflation in just a few minutes. One of the most striking examples is the Stevens Creek Toyota dealership, which listed a 2026 RAV4 Limited for sale at a price of $52,857. This amount includes an additional “dealer markup” of $4,700, as well as $295 for dealer-installed accessories.
The model description also mentions packages and accessories totaling $3,407, including door edge guards for $295, door sill protectors for $165, and running boards for $199. While the pricing structure may be confusing, buyers should probably just walk away.
Another dealer, Magnussen’s Toyota of Palo Alto, has set a markup of $3,999 on all 2026 RAV4 models. Because of this, the RAV4 XSE, which should cost $46,444, is selling for $50,443, and the Limited version with a base price of $48,083 costs from $52,082.
The Problem is Not Only in California
While inflated prices in California are not surprising, the problem has spread to other states as well. For example, Molle Toyota of Kansas City added a “dealer adjustment markup” of $1,104 to the RAV4 Limited model, increasing the price from $47,404 to $48,508.
This is not the first time Toyota dealers have applied significant markups. A similar situation was observed during the launch of the updated Land Cruiser and Tacoma, and some dealers even dared to inflate prices on the Camry.
Advice for Buyers
Obviously, you should not agree to buy a RAV4 with an additional markup. There are enough dealers on the market who sell cars at the manufacturer’s suggested price, and they will be happy to have your order.
This situation arises at a very unfortunate time, as Toyota is spending millions of dollars on new RAV4 advertising during the Super Bowl. The model starts at $31,900 and comes standard with a hybrid powertrain producing up to 236 horsepower.
The practice of dealer markups remains a controversial part of the automobile business, especially for popular new models. It creates an additional financial barrier for buyers and can damage the brand’s reputation, which invests large sums in marketing to promote an affordable and modern product. Buyers in this situation have more advantages than it might seem at first glance – thanks to the openness of information on the internet and competition between dealers, finding a fair offer is quite realistic.