Toyota RAV4 buyers are facing significant price increases as dealerships across the United States add substantial, often unexplained, markups to the redesigned 2026 model. Despite the vehicle’s popularity and reputation for value, some dealers are exploiting demand by inflating prices by thousands of dollars. This practice, already seen with other Toyota models like the Land Cruiser and Tacoma, is leaving customers overpaying for a vehicle that should be available at MSRP.
Dealer Markups: A Growing Problem
A recent review of online listings reveals widespread markup practices. Stevens Creek Toyota in California is listing a 2026 RAV4 Limited for $52,857, which includes a $4,700 dealer markup and $295 in questionable “dealer-installed accessories.” The breakdown further includes $3,407 in additional packages and add-ons like door edge protectors and sill plates, raising questions about transparency.
Magnussen’s Toyota of Palo Alto adds a flat $3,999 markup to all 2026 RAV4s, pushing the price of an XSE model from $46,444 to $50,443, and a Limited from $48,083 to $52,082. Even dealerships outside of high-demand markets are participating: Molle Toyota of Kansas City has added a $1,104 “dealer adjustment” to its RAV4 Limited, increasing the price from $47,404 to $48,508.
Why This Matters
These markups are not merely an inconvenience; they represent a systemic issue. Dealers are capitalizing on limited supply and high demand, forcing customers to pay inflated prices for a vehicle they could potentially find elsewhere at MSRP. The practice also underscores a lack of price control by manufacturers, allowing dealerships to exploit buyers without consequence.
This behavior isn’t new. Toyota dealers have previously added markups to the Land Cruiser, Tacoma, and even the Camry, indicating a pattern of opportunistic pricing. Customers who are willing to shop around can avoid these markups entirely, as many dealers still sell at MSRP.
Avoiding the Markup
The solution is simple: do not pay above MSRP. Numerous dealerships across the country are selling the 2026 RAV4 at its suggested retail price. By researching and being willing to travel, buyers can avoid being taken advantage of by greedy dealers.
Ultimately, these markups demonstrate that the burden of market dynamics falls on the consumer. While demand remains high, it’s crucial for buyers to remain vigilant and prioritize finding a fair price.
