Used Toyota RAV4 Priced Higher than List Price at Same Dealer

ozzieblue on 30/10/2023 - 18:59
Last edited 30/10/2023 - 20:59 by 1 other user

I recently went to a Toyota dealer looking for a medium sized SUV. Knowing the wait time for the model of RAV 4 I wanted, I visited the used lot of the same dealer.

I noticed that the dealer had quite a few almost new RAV4's each with less than 5k km on the clock which were all well above "New List Price". For example, I noticed a used car with 64km on the clock which was priced at +-$12k over list. I had read an article on drive.com.au about suspicions of stock being moved between new and used by some Toyota dealers.

It is probably fair to add that I found it unusual to see so many low km vehicles, but there is no proof that the dealer did this & the dealer could genuinely have gotten access to 2nd hand stock through normal means. Also, private flippers could be adding stock to the used car lots. If they are moving stock, this is not illegal and private flipping of vehicles is not uncommon for Toyota.

Here is the article.

What do people think? Is this happening at dealers? How did they get so much low km stock? Would anyone pay over list for a shorter wait?

Automotive Car SUV Toyota

Comments

  • TheOtherBigAl on 30/10/2023 - 19:04
    +2

    When there's a profit to be made, someone will find a way of doing it. Toyota RAVs are in huge demand (along with just about every other Toyota vehicle), 2nd hand prices have been very high for a long time.

    At some point, the market will collapse, but as long a Toyota have such long waiting lists, expect near-new 2nd hand pricing to remain well above new prices.

    As to whether the dealers are doing a shifty, if they can't move lots of new cars, they'll be doing what they can to maximise their returns in other magical ways.

    • Sinnerator on 05/11/2023 - 11:22

      as long as immigration levels remain high there will always be an over-demand keeping prices high/higher, sux :-(

  • AustriaBargain on 30/10/2023 - 19:09
    +2

    Supply and demand. Waiting well over a year for a car when you need a car now should be worth thousands more.

    • charlierg on 31/10/2023 - 20:07

      Was told upwards of three years as of recently

      • kerfuffle on 31/10/2023 - 20:08

        Probably earlier if you don't get the one every single person seems to want i.e. Cruiser Hybrid

  • Drakesy on 30/10/2023 - 19:17
    +7

    2020 called and wants their news story back.

    • MS Paint on 30/10/2023 - 19:29

      Yep. Some people are self absorbed that they have no idea what's going on around them.

  • JimmyF on 30/10/2023 - 19:18

    I noticed that the dealer had quite a few almost new RAV4's each with less than 5k km on the clock which were all well above "New List Price". For example, I noticed a used car with 64km on the clock which was priced at +-12k over list. I had read an article on drive.com.au about suspicions of stock being moved between new and used by some toyota dealers.

    LOL Yep shonky dealers indeed. Sounds like the crap the USA dealers pull with 'market adjustments' on new cars.

  • Euphemistic on 30/10/2023 - 20:09

    I’m not sure wether I don’t like sellers profiteering or don’t like that buyers are stupid enough to pay over the list price because they must have it now. To me it’s just stupid to pay more than RRP.

    • ozzieblue on 03/11/2023 - 04:46

      Amen…. buyers are making the market. When they stop paying over retail, then the market corrects.

      From what i can see at other brands i have been looking at, there seems to be a slow down. A recent articile by carexpert sort of confirms this.

      Toyota will hopefully experience this too… i defintely have seen a compression in profits on RAV4 prices vs new. When this turns negative, i would expect flippers in the new car queues will remove themselves. If this turns abruptly this could improve the used.market as there is currently a lot of stock of almost new rav4's in the lots. (Priced over new).

  • bobbified on 30/10/2023 - 20:11

    It could be stock that's been ordered, come in and registered, but the buyer no long wants it and the dealer has given them a refund. It could well be a buyer that's got it, literally driven it around the block and come back to sell it back to the dealer. Who knows - lots of grey areas. It'll all come down to how the word "used" is interpreted.

    Besides - if you ordered a brand new car and you got one of those and found out you were the second registered owner, I think you wouldn't be happy because you ordered "brand new" and being the second registered owner means it wasn't "brand new".

    So any cars in the above situation can't go back as a brand new car. Used cars go for "market price". That means, it's just whatever someone will pay for it. There'll always be someone desperate for a car 'right now' who will be willing to pay the higher price.

    • freefall101 on 30/10/2023 - 21:37
      +1

      When they can sell it for more "used" than new, I think you'll find the first registered buyer just happens to work at the dealership.

    • ozzieblue on 03/11/2023 - 04:49

      Dealers have the choice of recycling cars that customers are not wanting to others in the queue before registering it and moving it to their used lots.

      • Euphemistic on 03/11/2023 - 06:18

        Very frustrating as a buyer with an order in a 12 month queue and seeing someone walk in a pick up a ‘cancelled order’ and it’s ready in a week.

        I told our dealer several times that if one popped up cancelled I’d have cash there within a few days. Still waited 15 months.

  • p1 ama on 30/10/2023 - 20:57

    What do people think?

    At the end of the day, it's a competitive market. You do not have to buy a new car. You do not have to purchase a particular brand, or at a particular dealer. If you don't like the price, then don't buy.

    Is this happening at dealers?

    Yes, absolutely, used car prices are still high and there's still lower stock of new cars. It's getting better though, so if you don't have to buy a new car now, don't buy one. Prices are tumbling and will only get lower over the next year.

    How did they get so much low km stock?

    Demo, trade-ins, cancelled orders…etc.

    Would anyone pay over list for a shorter wait?

    Objectively there are (perhaps not on this forum), but if there were not, then dealers would not be able to sell at above RRP.

  • JIMB0 on 30/10/2023 - 21:28
    +2

    Those flippin' bastards. Back in my day if you drove a new car over to the used car lot it would lose $12k, now it gains $12k. Who'd of guessed. Strange times.

  • GourmetFoodie on 30/10/2023 - 21:40

    Avoid the Toyota RAV-4 scam and Just buy a Tesla Model Y.

    • MS Paint on 30/10/2023 - 21:49
      +6

      To be fair it took 2hrs 41min before the EV fanbois entered the chat.

      • Gunnar on 31/10/2023 - 06:53
        +1

        In their defense they probably spent that time charging their car half way

    • Gotchas on 31/10/2023 - 06:27

      Have you owned both?

  • Hydralyte on 30/10/2023 - 21:48
    +1

    I recently went to a Toyota dealer looking for a medium sized SUV.

    You don't need a 2022, 2023 Rav4. Just get a 2020 or 2021 and it will do you fine.

  • Soundwave on 31/10/2023 - 12:00
    +2

    So after lockdowns, new stock was hard to get and the used car market was booming. People were willing to pay top dollar for a pre-owned vehicle. Dealerships can't raise the price of a new vehicle over RRP. So they started registering new car stock and transferring them to used vehicle stock which they can then sell the vehicle at whatever price they like. Used car market is slowly dying down and new car stock are coming back in.

  • ozzieblue on 10/11/2023 - 06:36

    An update. I have been following the car I wanted at the dealer since the post and the price has moved down to 60k now but still 7k above new price. (10 Nov).

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