- Toyota expects to raise prices three times in the US this year.
- New RAV4 inventory will stay limited as production ramps up.
- Dealers will push lower sellers like the Crown and new C-HR+.
As Toyota rolls out the next generation of its popular RAV4, dealers across the U.S. may begin nudging customers toward slower-selling models like the Crown, Crown Signia, bZ series, and the newly introduced C-HR+.
Although the 2026 RAV4 is starting to arrive at dealerships, availability will remain limited in the near term as production and logistics continue to scale up. In the meantime, some dealers with early stock have already slapped on sizable markups, frustrating potential buyers in search of fair pricing.
Read: Seriously? Greedy Toyota Dealers Adding Huge Markups To New RAV4
Toyota’s group vice president for North America and head of the brand, Dave Christ, acknowledged the temporary dip in supply, noting the company expects “a little volume drop” during the switchover. Still, Toyota hopes to “make up the [missing] RAV4 volume with other cars in the brand.”
Inventory Crunch Still Hitting Hard
“Right now, the majority of our stocks are pickup trucks, so we can do that today, and we’re trying to do that,” Christ told Auto News. “But as far as the low inventory cars, that’s going to be more determined as the year progresses than anything we can we can really count on right now.”
Data shows that Toyota and Lexus have maintained the lowest monthly inventory levels in the industry for two consecutive years. Given the current shortage of RAV4s, Christ sees an opening to redirect demand toward other similarly sized models, such as the Crown variants, electric bZ offerings, and the refreshed C-HR+. While these vehicles typically see lower sales, they could help bridge the gap until RAV4 production steadies.
Sticker Shock Incoming
Anyone planning to buy a new car this year might want to act sooner rather than later. Christ expects Toyota’s North American sales to dip slightly, largely due to rising prices.
According to Andrew Gilleland, senior vice president of automotive operations at Toyota Motor North America, the company expects to introduce three price increases across its lineup this year, compared to the usual two.
Toyota doesn’t plan to set the pace on pricing. Instead, Gilleland said the brand aims to follow competitors’ moves and avoid “being out in front of that.” Speaking to Car Dealership Guy, he admitted that average new car prices hitting $50,000 “keeps me up at night,” and noted that Toyota isn’t in a position to pass the full cost of the Trump-era tariffs on to buyers.
“We’re not gonna pass that along to consumers,” he said. “I don’t think it’s possible, and so it’s this game of chicken. How long do we play this game and absorb the tariffs for the consumer? It’s tough.”
