Dealerships run on an interesting business model. They work in proximity with their designated automakers in a close and sacred bond. At the same time, they’re also independent businesses that tend to behave entirely in their own interests. Dealerships are now selling the 2024 Toyota Land Cruiser for over $20,000 above sticker, which is as good an example as you’ll ever get. As you’ll remember, one of the selling points of the new Land Cruiser is that it’s $30,000 cheaper than the outgoing model.
You can see for yourself! Over at Concord Toyota, they have not one, but two brand-new Land Cruisers up for sale. Each comes with a hefty “Dealer Adjustment” of $21,000. That would have you paying $97,345 for a truck with a suggested retail price of just $76,345. Call it what you want, but we all know what’s going on here. The dealer thinks they can get a wad of extra cash on the sale, and they’re not ashamed to ask for it.
The basic motivation here is to cash in on high demand. The Land Cruiser has always been one of Toyota’s proudest nameplates. It’s returned to the US market after the previous model ended production in 2021. The sharp design and classic name have seen it land with a splash, even if the US is now getting a Prado-based model instead of the full-fat J300.
These dealer adjustments have become routine in recent years whenever there’s hype around a new vehicle. The Ford Bronco and the C8 Corvette are other great examples of this. Ditto the Toyota GR Corolla and the Honda Civic Type R.
Concord Toyota isn’t the only dealer trying to make big cash on new Land Cruisers. Thompsons Toyota in California is asking for a similar $20,000 “market adjustment” too. Plus, they’ve included a $469 ceramic paint coating and $229 ETCH Theft Registration on the bill, too. Magnussen’s Toyota in Palo Alto has an example up for around $15,000 above MSRP, while Heritage Toyota in Harrisburg, PA wants a $10,000 premium.
Not every dealer is going so hot, at least in public listings. Don Wood Toyota in Ohio has a Land Cruiser up at $77,674, in line with MSRP. In the same state, Byers Toyota has a similar deal, too, as does Hosmer Toyota in Iowa. Indeed, you might consider traveling farther afield if you really need a Land Cruiser fast.
Dealer markups can be frustrating if you’re eager to buy a particular vehicle. You’re put in a situation where the manufacturer is perfectly happy to sell you a vehicle at a certain price, but you have to pay more to please a middleman who you have no choice but to deal with.
It’s frustrating, but it’s a fact of life in American auto sales. If you want a Land Cruiser, you’ll have to pick your dealer carefully to avoid paying through the nose for it.
Image credits: Toyota, Concord Toyota via Screenshot, Cars.com via Screenshot
Meanwhile, buyers typically shows little concern if dealers incur losses on car sales. This attitude underscores the functioning of dynamic pricing in an efficient market, where prices adjust based on supply and demand. If potential buyers find the pricing unacceptable, they have the freedom to choose alternatives from other brands or dealers.
Anyone who pays this markup has well earned the massive depreciation coming to them.
And yes that dealer can GTFO too.
Car dealers who do this can fuck right the hell off. I have a long memory and I will drive far to avoid your shit dealership.
Dealership near me is quite a bargain, with ONLY an $8,800 markup on the 5 Land Cruisers they have incoming.
Wish I could say I was surprised. We as a country have perfected turning any decent product or service into as shitty an experience as possible.
We as a country have perfected turning any decent product or service into as shitty an experience as possible.
Try your local library. Ours are excellent.
The Toyota tax is high on this one.
If I were in the market for the new Land Cruiser I’d go straight to the Lexus dealer and get myself a GX for less money and be treated way better. The hubris of Toyota dealers is truly amazing.
Toyota’s distribution model and dealers are the reason I don’t have a new Toyota in my driveway right now.
I’d buy one tomorrow if I could 1) Test drive one and 2) Get one I actually want.
We went through this purchasing our new Rav4 PHEV. We called around to find one without the options we wanted, but still a PHEV version. We had been leasing a Rav4 hybrid, so the regular Rav4 stuff wasn’t of concern. We called several dealers with the hope that they would contact us when one was available for text driving. We were also cross shopping for the sorta-equivalent Lexus. We got a call and were able to see a Rav4 in the flesh. Test driving was possible, but we didn’t as we owned one. We did test drive a Lexus and that wasn’t a problem to do, but it would be about $10k more.
To obtain a Rav4 of desire, you basically have to wait until one shows up at a dealer. There is no ordering. We were a bit loose on the color, but rigid on the option packages desired. One showed up just a couple weeks later, and it was what we bought. The dealer told us that one customer was still waiting for their specific-choices Rav4 to arrive since August, but that buyer was specific about one color only. We only excluded a couple of colors. We got lucky on the color as it was what my partner wanted anyway.
One can order a Lexus to your desires, but not a Rav4.
Also apparently your location factors in as well. More Rav4s are shipped to certain areas than to other areas. We’re in the Sacramento area, so several dealers within easy driving distance, and again got lucky as the nearest dealer was the one that received the Rav4 we ended up buying.
LOL a GX priced like an LX! Fuck that. Just get the LX instead, and actually be treated better by the Lexus dealer.