Your questions answered: Why is my Toyota RAV4 Hybrid now $7000 more than when I ordered it?

The Toyota RAV4 Hybrid is another hot topic in the carsales mailbox this week, specifically the length of time would-be owners have to wait to get behind the wheel.

While Toyota Australia is confident it can reduce wait times, it seems not everyone who’s been waiting in the queue so far is happy.

It’s a topic set to ramp up with the government’s recently announced New Vehicle Efficiency Standards that are due to come into play in 2025. Rest assured we’ll see more hybrids and EVs on our roads in coming years!

Speaking of which, we’ve got one reader ready to go EV in the $150,000 luxury electric SUV space. While there’s not an enormous selection today, there are plenty of great alternatives coming throughout 2024.

And on the practical side of things, we’ve got someone looking for a large SUV for family duties.

Question: I ordered a Toyota RAV4 Cruiser Hybrid 2WD back in November 2022 from a car dealership in Sydney. Now is February 5th, 2024. I received a recent email informing me the car is on its way to come in mid-February. When I checked with them to finalise the balance for the car, they then said to me the new price I have to pay now is increased by $7000, which I never received any updates before.

I asked the sale manager what made the price increase so much, he didn’t answer me directly, he said there are a few updates on the car but couldn’t list it all out and how it’s added up. He said this is a new price coming from Toyota.

I did not agree with his answer but he said if I don’t agree with this new price then I just need to email back to cancel the purchase.

This is a first-ever ridiculous outcome I received from such a trusted car brand. Is this a new normal that Toyota wants to treat all of its loyal customers after making them wait for such a period of time? What should I do now please, I need a humane answer. – Jeannie

Answer: Toyota has certainly annoyed plenty of customers with the way it’s handled what have been long wait times for some of its cars. It seems some dealers were too eager to sign up would-be customers rather than give them an honest estimation of when their car would be delivered.

The reality is Toyota knows exactly how many cars it will manufacture tomorrow, next week and next month. It also knows what the allocation for various dealers will look like. All of which makes it relatively easy to provide vaguely accurate delivery estimations to customers.

Granted, there are genuine shipping delays and logistical issues that can slow down things for a few weeks. But not the months and years people have sometimes had to wait. Then asking people to pay thousands more for the car is the final sting in the tail…

The RAV4 Hybrid has been front and centre with those concerns, unfortunately. And, as you’ve learnt, there’s no shortage of customers queuing to grab your car if you do cancel the order.

When you ordered your front-drive Cruiser Hybrid in November 2022 the list price (before on-road and dealer costs) was $45,750. The same car is now $51,410, which amounts to an increase of $5660.

It’s had some updates over that time, including a larger infotainment screen, the addition of wireless Apple CarPlay and a larger digital instrument cluster. It also has remote connectivity that allows for over-the-air software updates and has the ability to monitor the vehicle from a smartphone app.

All of which are genuine improvements to the car, albeit ones that were announced (without pricing) about six months before you placed your order; the dealer would have ideally pointed out the price was likely to increase as a result.

But much of your price increase is from so-called general price increases that account for inflation and (likely) profitability. There’s every chance registration costs in your state have also increased slightly and you need to remember that any increase to the list price then attracts stamp duty, usually at around four per cent.

The dealer may also have increased their dealer delivery fee, something you’ll be able to check by comparing your original order contract with the final bill you’ve been delivered.

None of which helps you trying to pay what you originally thought you’d have to for the car.

Keep in mind you don’t have to purchase the car from that dealer. You could call another dealer and see if/when they have stock and what price they will do you. Or look at alternatives.

The latest Honda CR-V Hybrid is a great buy, although a couple of grand more expensive than the RAV4 Hybrid. The Nissan X-TRAIL e-POWER is also great buying and has a more modern cabin than the RAV4. Plus, you’ll pick up all-wheel drive as a bonus.

Question: Could you please find out what the true story is regarding the timeframe for purchasing a new Toyota RAV4? I have recently updated my 2020 RAV4 Hybrid Cruiser to a new RAV4 Hybrid Cruiser. I seem to get quite contrasting reports on the waiting time. Also, my second/town car is the MG ZS EV 2022 model, which we are finding very good with the exception of some of the map software. – David

Answer: Different dealers could have different wait times on Toyota RAV4 Hybrid models. That’s because each dealer has a certain allocation of vehicles and a list of buyers they will supply them to. So it’s conceivable that one dealer could have a wait of only a few weeks and another could be asking people to wait a year or more.

The next issue is whether dealers are telling the truth on how long you need to wait. The feedback I’ve received suggests some dealers are keen to ink a deal by promising an earlier wait time then giving the customer bad news down the track.

Question: I’m looking to buy a new car and was going to stick with good ol’ petrol, but reading all the headlines over the past week I’m now not so sure. Should I be looking at an EV or am I OK to be considering petrol? Confused… – Damian

Answer: Petrol will be around for a long time yet, but it’s also true that we’re going to start seeing a lot more fuel-efficient cars come into the market before the end of the decade.

The federal government’s forthcoming New Vehicle Efficiency Standard (NVES) is an absolute game-changer for the industry that will change what’s available in the showroom and hopefully make cars cheaper to run.

So you shouldn’t be afraid of buying a petrol-powered car now – or even next year or the year after. The biggest question you should ask yourself is what you need.

We’re seeing some great electric alternatives in the $50,000 to 70,000 market, for example. So if you’re playing in that space we’d suggest at least considering an EV.

But if you don’t have easy home charging (a regular power point should be fine), or if you regularly take off on 1000km-plus adventures, then an EV may not be right for you at the moment.

So, short story is consider your budget and circumstances and the best car for you right now – whatever it’s powered by.

Question: I’m currently driving a Mazda CX-5 (2018). I might look to get new car soon as it’s just clicked over 90,000km. I have a four-year-old son, so need air-con in the back. I also drive regularly to the country. Like a decent-sized boot! What would you recommend I look at please? – Kelly

Answer: It sounds as though a mid-size SUV works nicely for you now so let’s focus on that segment of the market, which happens to have loads of options.

Most will have a decent boot, as your CX-5 does now. The Nissan X-TRAIL is one of the larger of the mid-size SUVs and it also drives really well. The e-POWER version gets a hybrid system that only uses electric motors to drive the car. But there’s no external recharging, so it runs purely on petrol.

The Kia Sportage is also terrific buying and also has the (rare) bonus of having a full-size spare tyre (most rivals have a space-saver). That’s added peace of mind when driving to the country, while the seven-year warranty is also a plus.

The Sportage is available with various engines, including a diesel, which would work nicely on those country trips. However, given the mileage on your Mazda it sounds as though you may not get the full benefit for the kilometres you’re driving.

So also keep in mind the hybrid version of the Sportage, which is arriving in dealerships in the next few weeks. It should be a lot more economical when running around the suburbs.

And don’t rule out an EV either, at least if you have the option of charging at home. The recently announced vehicle efficiency standard that’s expected to be implemented next year will almost certainly make EVs more affordable.

The Kia EV5 is shaping up to be an interesting option, due around the middle of the year.

Question: Unified battery/chassis designs seem to be increasingly common in new EVs. I’m wondering how this affects battery access should one cell go bad?

In previous designs the battery could be dropped out and the offending cell replaced relatively simply. Can this be done with the new unified battery/chassis design?

Or can the entire battery even be replaced in these designs? If so, given plummeting EV retained values, does this mean the entire car would likely be written off just by one bad battery cell? – Steven

Answer: Having the battery as the structure of the car helps save weight and improve rigidity, so it’s no surprise that it’s looking like being utilised more by manufacturers.

You’re right in that replacing the battery pack when it’s part of the structure of the car can be a challenge, but the short story is it can be done. Tesla gives an insight into the process in its service manual for cars manufactured with a structural battery pack (which doesn’t currently include Australian-delivered vehicles). Let’s just say it’s an involved process…

Remember, though, that most EVs have an eight-to-10-year warranty on the battery pack. And just like an engine or gearbox, the high-voltage battery is designed to last the life of a vehicle.

If the battery pack fails on a 15-20-year-old EV, there’s every chance the car will be scrapped – in the same way a failed engine on a 20-year-old Corolla would likely land it in car heaven.

As for plummeting EV values, we’d argue that’s too strong a word. Yes, EV values have fallen, but so have values across the used car market. Values were ludicrously high in some instances and most used cars appreciated during the COVID pandemic. The market is vaguely returning to normal and EVs have been caught up in that.

That said, there’s a bit of a two-speed market with used EVs. The desirable ones, such as Tesla, Polestar and some Hyundai and Kia EVs, tend to hold up reasonably well – remembering that they’ve depreciated in line with the market in recent months. Some of the less desirable ones haven’t been quite as resilient.

Question:

Answer: The Mercedes-Benz EQE 350 SUV ticks the luxury boxes and is generally comfortable, but it’s expensive and also very heavy, something that translates to its driving manners. They’re comfy and quiet, but it’s not as athletic as some.

You should check out the BMW iX while you’re shopping. It’s an excellent car with an airy cabin and great driving credentials. Forced to choose between the two, the BMW would edge ahead in our books.

But there’s also lots more coming in the EV space. While I haven’t driven either yet, there are two Polestar models that look great on paper. The Polestar 3 (large SUV similar in size to the EQE) and Polestar 4 (mid-size SUV) come packed with tech and look pretty smart.

Late in the year the new Porsche Macan EV arrives. It’s another one that’s shaping up nicely (also haven’t driven it) and will easily come in under your budget.

Question: I am legally blind and have not driven a car since 1998. My wife took delivery of a Nissan X-TRAIL Ti e-POWER in August 2023, I wish I could drive it.

I wish to know if driving in Sport mode invokes any changes to the car’s suspension settings? I get some motion sickness symptoms in Normal drive mode and I think I get it less in Sport mode. Am I imagining a difference in the side-to-side motion (harder feel and less sideways movement)?

Answer: The only things that would change the way a car deals with bumps and corners when adjusting drive modes is if it had adjustable dampers, adjustable air suspension or active stabiliser bars.

The Nissan X-TRAIL has none of this. It has traditional coil springs, fixed stabiliser bars and fixed dampers (or shock absorbers).

So there will be no difference to the way the car physically deals with bumps and bends.

Two things that do change when you select Sport mode is the throttle response and steering feel. Perhaps the firmer steering feel is subconsciously reducing finer movements that your wife was making to the steering wheel, in turn translating to a more relaxed ride?

Similarly, the sharper throttle response in Sport mode may be better suiting her driving style.

But in terms of the suspension itself, rest assured there are no changes occurring when Sport mode is selected.

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