Is the Toyota price markup really worth it?

Just wanted to talk about this. I’m looking for a new car, and the Toyota Camry and RAV4 seem like good choices. I want something reliable, and Toyota’s hybrid engines are really fuel-efficient.

The problem is that dealers are charging extra on these cars, and it’s wiping out any savings I’d get from fuel efficiency and reliability. It’s frustrating.

I’m looking at the top trims because I plan to keep my car for years, but why should I pay $49K for a Camry XSE AWD when I can get a certified pre-owned luxury car for less and just save money for future repairs?

Do you think prices will come down, or is this just how it is because of supply shortages?

Paying $49K for a Camry is wild. You could get a Lexus ES Hybrid for that price.

brunomars said:
Paying $49K for a Camry is wild. You could get a Lexus ES Hybrid for that price.

I know, right? The XSE AWD is listed between $42K and $49K near me. Dealers add on extra fees and adjustments. I tried negotiating, and they barely lower it by $2K or $3K. They just won’t budge.

@Tilden
Look at dealerships farther away. Even if you have to drive 500 miles, saving $5K is worth it.

Jose said:
@Tilden
Look at dealerships farther away. Even if you have to drive 500 miles, saving $5K is worth it.

Yeah, I think you’re right. Might have to expand my search.

Tilden said:

Jose said:
@Tilden
Look at dealerships farther away. Even if you have to drive 500 miles, saving $5K is worth it.

Yeah, I think you’re right. Might have to expand my search.

Email as many dealerships as you can within 500 miles. Tell them exactly what you’re looking for and how much you’re willing to pay. If they tell you to come in, say no. If they ask to call, say no.

Avoid quotes with dealer add-ons. If they insist, let them know you’re not interested.

They’ll probably tell you that you won’t find the car for your price, but just thank them and move on.

@beky
This is how I got my RAV4. I emailed dealerships for months, never gave them my number, and only visited when I had an out-the-door price locked in. I had to drive from Phoenix to California, but I saved a few grand.

Tilden said:

Jose said:
@Tilden
Look at dealerships farther away. Even if you have to drive 500 miles, saving $5K is worth it.

Yeah, I think you’re right. Might have to expand my search.

If you’re worried about cost, why not buy another brand and get a solid warranty? You could probably save $10K to $15K, and the extended warranty wouldn’t be more than $3K. Hybrid batteries can be pricey to replace, so keep that in mind.

Tilden said:

Jose said:
@Tilden
Look at dealerships farther away. Even if you have to drive 500 miles, saving $5K is worth it.

Yeah, I think you’re right. Might have to expand my search.

Check out the Costco auto program. Not quite employee pricing, but still a solid discount.

Tilden said:

Jose said:
@Tilden
Look at dealerships farther away. Even if you have to drive 500 miles, saving $5K is worth it.

Yeah, I think you’re right. Might have to expand my search.

If you’re looking at a hybrid, make sure to check on battery replacement costs. Some people don’t factor that in when they’re calculating long-term savings.

Jose said:
@Tilden
Look at dealerships farther away. Even if you have to drive 500 miles, saving $5K is worth it.

I found a dealer a couple of hours outside of Nashville and dodged the $5K ‘market adjustment’ nonsense.

Jose said:
@Tilden
Look at dealerships farther away. Even if you have to drive 500 miles, saving $5K is worth it.

Flying to another state and driving back could be worth it too.

@Tilden
Keep looking for dealers that sell at MSRP. Some still do.

@Tilden
If you’re considering a Camry for that price, just go get a Lexus instead.

@Tilden
This isn’t really a Toyota issue—it’s a dealership problem.

@Tilden
Are you in California or the South? Prices are usually worse there. Try looking in a different region.

@Tilden
Never pay extra fees on a Camry. Look elsewhere.

@Tilden
I was stuck between a top-trim Camry and a base-model Lexus ES. Went with the Camry, and I love it. The tech is great, and it feels pretty upscale.

@Tilden
When I bought my RAV4, I contacted about 15 dealers. Only when I got a decent price did another dealer step in and offer 10% off MSRP.

brunomars said:
Paying $49K for a Camry is wild. You could get a Lexus ES Hybrid for that price.

Yeah, a fully loaded Lexus ES300h Ultra Luxury costs around $60K, but you can sometimes find them for low to mid-$50Ks with discounts.