For a number of reasons, I’ve decided to get a new car. I’ve settled on the Toyota RAV4 Prime as it is really the vehicle I wanted 5 years ago when I was searching for a car. The car is a plugin hybrid (PHEV) which means that most of my driving will be on electric (42 miles on electric). With my newly installed solar, I won’t be paying extra for the electricity (I’ve already paid for it and factored in this car when sizing the system).
The problem now is that the car is in such high demand and Toyota is going to make less than 5000 this model year. While the vehicles are starting to show up according to reports on forums, dealers in Southern California have decided that a $10,000 markup is the way to go. I’ve read that in other regions (Southern California including San Diego is considered the LA region) such as the northwest and east coast, people are getting the cars at MSRP which is reasonable.
Every dealer I’ve communicated with in San Diego and LA is adding the markup no matter the trim. That number is ubiquitous across the board. On one forum that I posted this to, someone suggested that I look at an article on the FTC’s website. The article says that while dealers can charge what they want for a vehicle, they basically have to come to their pricing on their own independently of other dealers. Given that they all (of the ones I’ve contacted) are charging the exact same amount over MSRP, did they come to this conclusion on their own or did they come to the pricing together as a region? One salesman speculates that it is regional. However, there are some people on RAV4 forums who are talking about different markups; I’m not sure of their regions.
Is what the dealers doing legal? I have no idea. Is it right? In my opinion, no and it goes into the feeling that many people have that car dealers are not the most honest people. Going into a dealership makes me cringe and this just reinforces it.
I guess I’ll be waiting awhile for the vehicle I want; hopefully I can get it before the federal tax credit runs out.