Just a month ago, we reported that many owners were reporting MSRP-level pricing for the Toyota RAV4 Prime plug-in hybrid electric vehicle. Some new owners had even reported final selling prices slightly below the MSRP. However, if posts from frustrated buyers on social media are any indication, popular new electric vehicles are again seeing higher MSRP prices. Microprocessor shortages reported by our own Jeff Teague as well as ongoing EV battery production constraints undoubtedly play a role in this regard.
RAV4 Prime priced at $ 20,000 above MSRP per Toyota dealer
The first post that caught our attention was a Toyota dealership in California asking $ 20,000 more than the Manufacturer’s Suggested Retail Price (MSRP) for a RAV4 SE. This particular May 16 posting took the form of a photo showing the prices on the vehicle window.
The location of this vehicle for sale is right in the backyard of Tesla, Fremont California. Join Toyota RAV4 Prime Group Official Facebook to see the message yourself. Following the original post, one of the group’s local moderators went to see if the markup was still in effect and grabbed the above image for Torque News to use in this story.
We were easily able to find examples like the one shown above on other Toyota dealer sites showing profit margins of $ 10,000 over MSRP. The owners report that these high additional fees are primarily located in California. The electric vehicles Californians requested through CARB warrants have arrived and they aren’t cheap.
Related story: Toyota RAV4 Prime is America’s 2nd Best-Selling Vehicle
Ford Mustang Mach-E Dealer Markings
Although posts priced above the MSRP attract a lot of emoticons and swear in the comments of some loyal former owners of the brand never to buy another, Toyota is not alone in seeing unprecedented demand for its products. new electric crossovers. Ford’s incredible Mustang Mach-E continues to demand an MSRP or higher price in many areas, according to buyer posts posted in online vehicle forums.
An online message from Reddit shows a markup of $ 20,000 on a Mustang Mach-E. Another from the Mustang Mach-E nation on Facebook shows a disturbing practice. A Ford dealership appears to list the Mach-E as having an MSRP of $ 61,440 on its website price list. However, the actual window sticker shows the MSRP at $ 56,440. This seems misleading to us. We alerted Ford’s public relations group to this example. Ford has been very proactive in dissuading its independent dealer partners from engaging in this type of practice. in the past.
No outrage over cuts
When dealerships offer discounts on new vehicles, $ 10,000 on trucks, no one accuses them of being unfair. When manufacturers offer incentives in the form of zero percent financing or “cash on the dashboard” for the miniatures they want to move, no one shouts “fault!” There are certainly two sides to this story, and Toyota’s RAV4 Prime and Ford’s Mustang Mach-E are by no means the first vehicles dealers have chosen to sell above the “Manufacturer’s Suggested Retail Price.” “. However, we find this news timely given that Tesla, Ford and Toyota cannot keep pace with the strong demand for electric crossovers while Congress and President Simultaneously Develop Additional Tax Incentives For Electric Vehicles to âdrive salesâ.
Are dealer markups unethical or illegal?
What you say? Is it unethical, illegal or mean for dealers to mark popular electric vehicles well above the manufacturer’s suggested price? Or should the best vehicles of any type sell for the price consumers are willing to pay? Tell us your opinion in the comments below.
Top image courtesy of Christopher Davis. Red RAV4 Prime image by Beverly Hackett. RAV4 Prime markup sticker courtesy of Noe Arribas.
John goreham it’s long New England Automotive Press Association member and recovery engineer. John’s interest in electric vehicles dates back to 1990 when he designed the thermal control system for an electric vehicle battery as part of a college team. After graduating in mechanical engineering, John completed a marketing program at Northeastern University and worked with manufacturers of automotive components, in the semiconductor industry, and in biotechnology. In addition to Torque News, John’s work has been featured in dozens of US newspapers and he provides reviews for numerous vehicle shopping sites. You can follow John on TikTok @ToknCars, at Twitter, and view his credentials on Linkedin