Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeTransportationAutosWhy Toyota RAV4s are suddenly the most coveted used cars in AmericaWith the average transaction price of a new car in the U.S. now around US$50,000, used cars have surged in popularityAuthor of the article:Last updated 6 hours ago You can save this article by registering for free here. Or sign-in if you have an account.Many would-be RAV4 buyers have been stuck on waiting lists, and used versions are now commanding a premium, even topping the list price of a new car. Photo by Dale Carruthers/The London Free PressMost cars lose value the moment they leave a dealer’s lot. The RAV4 hybrid gains it.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorUsed, late-model versions of the RAV4 hybrid often list for more than their original sticker prices, even with thousands of miles on their odometers. In some cases, they cost more than a new 2026 model fresh from the Toyota Motor Corp. factory.The price inversion seems to defy a natural law of used-car economics. But it illustrates some of the most powerful forces driving the United States auto market this year.The Iran war sent gas prices surging, with the national average for regular well above US$4 per gallon. Some car buyers have responded by snapping up used electric vehicles, which often sell at a steep discount from their original price. Others who are either unwilling or unable to go fully electric have turned to hybrids, which pair an electric motor with a gas-burning engine. Long considered a niche product in the U.S., they’re now highly coveted.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againAnd for the moment at least, there aren’t enough new hybrid RAV4s to go around.Production hit a lull last year as Toyota stopped building the fifth generation of the compact SUV and started making the sixth. With fewer new RAV4s reaching showrooms, many would-be buyers have been stuck on waiting lists. Used versions — as long as they’re from a recent year and in good shape — command a premium, even topping the list price of a new car.The hybrid RAV4 gets upwards of 40 miles per gallon, well above the U.S. new-car average of 27.2 mpg. It’s popular enough that Toyota discontinued all non-hybrid versions of the RAV4, starting this model year. And Brandon Wingate of Albany, Georgia, decided it was just what his family needed.He and his wife were sold on its roominess, Toyota’s reputation for reliability and the hybrid’s promise of savings at the pump. Wingate paid US$32,000 in February for a 2024 RAV4 with 44,000 miles on it — a car that listed for US$38,735 when new. He drove about five hours across the state to test-drive it after spotting it online and was only able to haggle the dealer down US$500 to compensate for a small window crack.“There’s no negotiating anymore — you basically pay the asking price,” said Wingate, 42, an IT technician. “I’m just glad to have bought when we did, because prices for the same vehicle are up anywhere from US$6,000 to US$8,000 since then.”Indeed, CarMax recently advertised a 2024 RAV4 Hybrid XSE with 29,000 miles for US$46,998, which is higher than that trim’s original US$38,735 sticker price.Carvana listed a 2025 RAV4 Hybrid Limited with 5,606 miles for US$48,590. That’s a cool US$6,040 above the manufacturer’s suggested retail price when it was new. It’s also more than the US$43,300 sticker price of a 2026 Limited model.The shortage fuelling those high prices should end as Toyota scales up production. “We have a very methodical cadence of ramping up to ensure high quality,” Cooper Ericksen, Toyota’s North American head of product planning and strategy, said in an interview.For now, however, Toyota has less than five days’ worth of new RAV4 hybrids in its U.S. showrooms, far below the company’s overall inventory of about 15 days.“We’re selling every one we have in stock and have quite a few pre-sales” said Ryan Redding, general manager at Jim Norton Toyota in Tulsa, Oklahoma. Customers unwilling to wait often look for used RAV4s, he said, which means they’re also in high demand. “Most of the time, we don’t sell above the original MSRP,” Norton said.Consumer Reports warns that new 2026 RAV4s are selling for about four per cent more than their sticker prices. Managing Editor Jeff Bartlett, in a recent blog post, wrote that prices should edge down as production revs up, but “because elevated gas prices may keep interest in the RAV4 high, don’t expect discounts any time soon.”With the average transaction price of a new car in the U.S. now around US$50,000, used cars have surged in popularity. So too have hybrids, which not only cut fuel costs but let drivers use highway carpool lanes in at least 12 states. Once limited to a handful of models like the original Toyota Prius — with a shape often compared to a cheese wedge — hybrid drivetrains are now available in most every class of passenger vehicle, including the Ford Motor Co. Maverick pickup, the Kia Corp. Carnival minivan and Stellantis NV’s Jeep Cherokee SUV.Some of those hybrids command high prices used, although not as consistently as the RAV4.Carvana, for example, lists several Honda Motor Co. hybrids with asking prices near their prices when newly sold. It recently advertised a 2024 CR-V Hybrid Sport Touring version with 14,000 miles for US$40,590, just below the original base sticker of US$41,595. Data from CarGurus, a website that lists vehicles for sale by dealers and other sellers, show that two of the three types of 2025 CR-V hybrids list for at least 90 per cent of their original MSRP, and all three trims of the 2024 model year retain 80 per cent of their initial value.All used RAV4 hybrids from the 2024 model year onward command prices of at least 90 per cent of their initial MSRPs, according to CarGurus. Of the seven hybrid trims offered in the 2025 model year, four now list for more than their original sticker prices.“Toyotas are in general tough to find, and hybrids are tough to find,” said Kevin Roberts, director of economic and market intelligence at CarGurus Inc. “If you’re struggling to find a new RAV4 hybrid, you might pay more for any used one you can get your hands on.”While unusual, Roberts said that’s not unprecedented. Used-car prices spiked during the COVID-19 pandemic, when automakers cut new car production and removed certain features like heated seats due to chip shortages.Prices for used hybrids, however, have climbed high enough this year that some buyers say they can’t justify the expense — even knowing they’d save on gas.Peter Aviles, a retired home inspector based in Fort Lauderdale, tested a 2021 RAV4 hybrid in April but instead bought a gas-only 2022 version for his vacation home in Puerto Rico. He wanted a RAV4 because of its reputation for quality and high resale value, but he wasn’t willing to pay the premium for a hybrid.“It gets good enough fuel economy,” Aviles, 75, said. “And it can handle the potholes.”—With assistance from Max Rivera. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.