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66% of Car Buyers Cross-Shop New AND Used: Why Dealers Hate It
The car-buying game has fundamentally changed. According to a Cox Automotive study from January 2026, 66% of buyers now cross-shop new AND used vehicles. That’s up from 57% one year ago. Even more striking: 29% of new car buyers are actively comparing leasing versus buying before they sign anything. Both numbers are all-time highs, and they represent a massive shift in how consumers approach the market.
Dealers? They absolutely hate it. And for good reason: when you cross-shop, you hold all the leverage.
Why Cross-Shopping New and Used Cars Is Exploding
A few years ago, the playbook was simple. You walked into a dealership knowing whether you wanted new or used, and salespeople could steer you toward whatever had the best margin. But three major forces have flipped the script:
1. Inventory normalization: New car supply has recovered from pandemic lows, while used prices have cooled from their 2021-2022 peaks. The gap between new and used isn’t as predictable anymore.
2. Rate volatility: Interest rates have swung wildly. A lightly used car with a 6% rate might cost more per month than a new model with manufacturer financing at 2.9%.
3. Information access: Tools like CarEdge, ChatGPT, and even TikTok have made it trivial to compare a 2024 CPO model against a brand-new 2026 with incentives—all before you ever talk to a salesperson.
The result? Buyers are making smarter, more flexible decisions. And dealers are losing control of the narrative.
66% Cross-Shop New and Used Cars
Let’s break down what this means in practice. If you walk into a Honda dealership looking at a new Accord, there’s a two-in-three chance you’ve also priced out:
- A 2024 Accord CPO with 15,000 miles
- A 2023 Camry with similar features
- Maybe even a leftover 2025 new model at a different dealer
This isn’t indecision, it’s responsible car shopping. Buyers are treating the car market like any other major purchase: they’re comparison shopping.
Why does this frustrate dealers? Because it kills the anchor. Salespeople rely on anchoring your expectations to a single category. If you’re “a new car buyer,” they can upsell trim levels and warranties. If you’re “a used car buyer,” they can push certification fees and extended coverage. But when you’re both, they can’t box you in.
29% of New Buyers Compare Leasing vs. Buying
This one’s even more telling. Nearly three in ten buyers who do choose new are also running lease vs. finance calculations. That’s a massive behavioral shift.
Why? Because the math has gotten weird. In 2026, you might find:
- A lease on a $45,000 EV that costs $299/month (thanks to tax credit passthrough)
- A finance deal on the same car at $650/month (6.5% APR, minimal down)
Smart buyers are asking: “Do I even want to own this, or should I just lock in a low payment and reassess in three years?” Dealers hate this because leases require transparent residual calculations, and they can’t bury profit in interest rate markup as easily.
Why Dealers Hate Cross-Shopping
Cross-shopping breaks the dealership playbook. Ray’s seen this firsthand over decades in dealerships. Here’s the traditional sales process:
1. Qualify the buyer: Are they trading in? What’s their budget? New or used?
2. Isolate the vehicle: Get them emotionally attached to one car.
3. Control the numbers: Structure the deal so monthly payment feels reasonable, even if the total cost is inflated.
Cross-shopping destroys step two. When a buyer says, “I’m also looking at a CPO model across town and a new one with 0% financing,” the salesperson can’t anchor you to their inventory. You’re signaling that you’ll walk if the math doesn’t work.
Harder to Bury Profit
Dealers make money in a few key places:
- Front-end profit: The gap between invoice and selling price.
- Finance reserve: Markup on your interest rate (yes, this is legal in most states).
- Back-end products: Warranties, gap insurance, paint protection, etc.
When you cross-shop new and used, you’re implicitly comparing all three. A CPO car might have a lower sticker but a higher rate. A new car might have incentives that make financing cheaper. Suddenly, the dealer can’t hide profit in one bucket because you’re scrutinizing the whole package.
Ray’s advice? This is your power move. Don’t let them silo the conversation. If they’re pushing a used car, ask about new incentives. If they’re pushing new, ask about CPO inventory. Force them to compete against themselves.
How to Leverage Cross-Shopping Like a Pro
Step 1: Start Broad, Then Narrow
Don’t walk in with your mind made up. Even if you think you want a new 2026 RAV4, spend 20 minutes researching:
- What does a 2024 RAV4 with 20,000 miles cost?
- Are there leftover 2025s with bigger rebates?
- What’s the lease payment on a new one vs. financing a used one?
Use tools like CarEdge Pro to pull real market data. When shopping new cars, always have the invoice price. You want to walk into the dealership knowing the range of good deals, not just one target.
Step 2: Get Quotes on Multiple Scenarios
Here’s a real example from a CarEdge member in early 2026:
- Scenario A: 2024 Honda CR-V CPO, 18K miles, $32,500, financed at 6.2% for 60 months = $632/month
- Scenario B: 2026 Honda CR-V new, $36,800 MSRP, $2,000 rebate, manufacturer financing at 3.9% for 60 months = $634/month
The new car was $2/month more expensive. Guess which one the dealer wanted to sell? The used one—because they owned it outright and had more margin.
The buyer? She went with the new car. Better warranty, lower rate, and she leveraged the CPO quote to get an extra $500 off.
Step 3: Compare Leasing vs. Buying
Even if you plan to own the car long-term, get a lease quote. Why?
- It forces the dealer to show you the residual value (what they think the car will be worth in 3 years).
- It reveals manufacturer incentives you might not see on a purchase.
- It gives you a Plan B if rates are terrible.
Leasing has quickly become a popular option as rising MSRPs have put buying out of reach for many. For drivers who want something fresh and different every two or three years, leasing lets you avoid repeated depreciation hits.
Step 4: Use Cross-Shopping to Negotiate Harder
Here’s the script:
“I’m comparing this 2026 Accord at $32,000 to a 2024 CPO at $28,500 and a leftover 2025 at another dealer for $30,000. I like your car, but I need you at $31,000 to make the numbers work.”
You’re not being rude—you’re being transparent. And transparency terrifies dealers because it means you’ve done your homework.
Ray’s tip: Don’t bluff. If you say you have another offer, you better actually have it. Dealers can smell BS, and it kills your credibility.
What This Means for the Market in 2026
Buyers Have the Upper Hand
The 66% cross-shopping stat isn’t just a data point—it’s a power shift. For the first time in years, buyers are forcing dealers to compete on value, not just availability. Inventory is up, prices are negotiable again, and information asymmetry is shrinking.
But this won’t last forever. If demand spikes or rates drop sharply, dealers will regain leverage. The time to cross-shop is now.
Dealers Are Adapting (And You Should Too)
Smart dealers are already adjusting. They’re pricing CPO cars more competitively, offering transparent online quotes, and training salespeople to handle cross-shoppers without the hard sell. The dinosaurs who refuse to adapt? They’re losing deals left and right.
As a buyer, your job is to reward the good dealers and walk away from the bad ones. If a salesperson dismisses your cross-shopping research or pressures you to “decide today,” that’s a red flag. There are plenty of dealers who will work with you.
Final Takeaways
The fact that two-thirds of car buyers now cross-shop new and used isn’t a trend—it’s the new normal. And the 29% who compare leasing vs. buying? That’s a sign that buyers are getting smarter, not just more cautious.
Dealers hate it because it makes their jobs harder. But for you, it’s the best leverage you’ve had in years.
Here’s your action plan:
1. Cross-shop ruthlessly: New, used, CPO, leftover models—get quotes on all of it.
2. Compare leasing and buying: Even if you think you’ll buy, the lease quote reveals hidden value.
3. Negotiate with data: Walk in with real numbers from real competitors. No bluffing.
4. Don’t rush: The market is soft right now. Dealers need your business more than you need their car.
The power is in your hands. Use it. Learn how CarEdge can get you the best deal.
How Smart Shoppers Buy Cars Without Overpaying
The car buying game has fundamentally changed. In 2026, the smartest shoppers walk into dealerships with the same information dealers once kept behind closed doors—and it’s completely free. This shift in power dynamics is forcing a new kind of negotiation, one where informed buyers set the terms instead of reacting to sales tactics.
Let’s break down exactly how educated car shoppers are winning deals in 2026, using real negotiation strategies that work.
Why Monthly Payment Goals Are a Trap
The first question most dealerships ask is: “What’s your monthly payment goal?” It sounds helpful, but it’s actually a negotiation tactic designed to shift your focus away from the vehicle’s actual price.
When you anchor a negotiation around monthly payments, dealers gain enormous flexibility to adjust loan terms, interest rates, and hidden fees while keeping your payment within your stated range. You might hit your $500/month target, but you could be paying thousands more over the life of the loan than necessary.
Smart buyers in 2026 shut this down immediately. Instead of discussing payments, they focus on one number:
- Out-the-door price – The total amount including all taxes, fees, and charges
This approach forces transparency and keeps the negotiation focused on value rather than affordability theater.
The Power of Market Data
Here’s what changed everything: pricing intelligence that was once dealer-exclusive is now available to anyone with an internet connection. Tools like CarEdge provide:
- Invoice pricing – What the dealer actually paid the manufacturer
- Days on lot – How long the vehicle has been sitting unsold
- Local inventory levels – How many similar vehicles are for sale nearby
- Recent sales data – How many have sold in the last 45 days
In our example negotiation, the buyer came prepared with specific numbers: MSRP of $63,435, invoice of $59,311, and the knowledge that the F-150 had been on the lot for 84 days. This intel completely reframes the conversation.
When a vehicle has been sitting for nearly three months, the dealer is carrying floor plan costs and wants to move it. An informed buyer can leverage this without being aggressive—simply acknowledging the reality shifts negotiating power.
The key is having this data before you contact the dealer. Once you’re in the negotiation, having specific numbers on hand signals that you’re serious and informed.
The Right Way to Approach a Dealer in 2026
Modern car buying starts with research, not test drives. Here’s the smart sequence:
Step 1: Do Your Homework
- Identify the exact vehicle (stock number or VIN)
- Pull invoice pricing and market data
- Understand incentives and rebates
- Check how long it’s been on the lot
- Research fair market values
Step 2: Make Initial Contact
- Reference the specific vehicle by stock number
- State your interest in test driving
- Clearly indicate you want to discuss selling price, not payments
- Mention you have pricing information without being confrontational
Step 3: Frame the Negotiation
- Lead with out-the-door pricing as your focus
- Acknowledge the vehicle’s time on lot (if applicable)
- Express that you’re a serious buyer ready to move quickly
- Avoid revealing your exact offer until after the test drive
Step 4: Negotiate with Data
- Use invoice as your baseline, not MSRP
- Factor in hold-back and dealer cash when present
- Reference comparable recent sales
- Be willing to walk away—there are always other dealers
What to Say When They Ask for a Monthly Budget
Salespeople are trained to steer you toward payment discussions. Here’s how to redirect:
Dealer: “What monthly payment are you looking for?”
You: “I’m not focused on the monthly payment right now. I want to make sure we agree on a fair selling price first. Once we settle on the out-the-door number, we can structure financing however makes sense.”
This response is firm but not adversarial. It signals experience without creating tension.
Use ‘Days on Lot’ to Your Advantage
Every day a vehicle sits on a dealer lot costs money. Most dealerships pay floor plan interest to finance their inventory—typically $20-50 per day per vehicle depending on its value.
An F-150 that’s been sitting for 84 days has cost the dealer roughly $1,680-$4,200 in carrying costs alone. That’s before accounting for lost opportunity (that lot space could hold faster-moving inventory) and depreciation risk.
This context doesn’t mean you strong-arm the dealer, but it does mean they’re motivated to move aged inventory. A reasonable offer on a vehicle with high days-on-lot is likely to get serious consideration, especially if you’re a qualified buyer ready to close quickly.
How Car Pricing Works: Numbers That Matter
When negotiating a car deal, it’s helpful to know exactly how much profit for the dealership is built into each sale. No matter what the salesperson tells you, you do have plenty of room to negotiate savings! Here’s a quick breakdown of the pricing hierarchy:
- MSRP (Manufacturer Suggested Retail Price) – The sticker price; almost never what you should pay
- Invoice price – What the dealer paid; your starting negotiation point
- Hold-back – Additional dealer profit (typically 2-3% of MSRP) returned by the manufacturer after sale
- Dealer cash/incentives – Manufacturer bonuses to dealers for moving specific inventory
- Selling price – The agreed vehicle price before taxes and fees
- Out-the-door price – The total including all taxes, registration, and legitimate fees
Your goal is to negotiate a selling price between invoice and MSRP, closer to invoice especially on aged inventory, then verify the out-the-door price includes only legitimate fees.
How This Looks in Practice
In the example negotiation, the buyer:
- Identified a specific vehicle by stock number
- Came armed with invoice pricing ($59,311 vs. MSRP of $63,435)
- Knew the vehicle had been on the lot for 84 days
- Redirected payment-focused questions to price discussions
- Positioned themselves as an informed, serious buyer
This approach immediately shifts the dynamic. The salesperson recognizes they’re dealing with someone who’s done research, which tends to accelerate the negotiation process and reduce back-and-forth games.
The Bottom Line
Buying a car in 2026 isn’t about being the toughest negotiator or playing games—it’s about being informed. When you walk in with invoice pricing, inventory age, and market data, you’re negotiating from a position of knowledge rather than reacting to sales tactics.
The dealers who adapt to this new reality focus on service, transparency, and efficiency. The ones who don’t quickly find themselves losing deals to competitors who respect informed buyers.
Your goal isn’t to squeeze every last dollar out of a dealer. It’s to pay a fair price based on actual market conditions and vehicle cost structure. With the right information and approach, that’s exactly what you’ll accomplish.
The power shift in car buying is real, and it’s permanent. Smart shoppers in 2026 are leveraging it to save thousands while making the process faster and less stressful for everyone involved.
Toyota RAV4 Markups in 2026: What Dealers Are Charging vs. What You Should Actually Pay
If you’ve walked into a Toyota dealership recently and asked about a RAV4, you probably felt your stomach drop. The markups on America’s best-selling SUV are, frankly, insane right now — and dealers are counting on you not knowing any better.
But here’s the thing: you don’t have to pay those inflated prices. CarEdge’s Ray Shefska has spent decades on the dealership side of the desk, and his son and co-founder Zach tracks the pricing data obsessively. Together, we’re pulling back the curtain on exactly what dealers pay for a RAV4, what they’re charging you, and what you should actually agree to spend.
Let’s break it all down.
Why Are Toyota RAV4 Markups So High?
The Toyota RAV4 has been the best-selling crossover in America for years running, and 2026 is no different. Demand remains sky-high for a few key reasons:
- Bulletproof reliability reputation — Toyota’s brand loyalty is unmatched, and the RAV4 consistently ranks at the top of reliability surveys from J.D. Power and Consumer Reports.
- The hybrid and Prime models are supply-constrained — Toyota still can’t build RAV4 Hybrids and RAV4 Prime plug-in hybrids fast enough to meet demand, which gives dealers leverage. They’re consistently in the top 10 fastest-selling cars.
- Refreshed styling and tech for 2026 — The latest model year brought enough updates to fuel fresh buyer interest without a full redesign.
When demand outstrips supply, dealers add “market adjustments” — a polite way of saying they’re tacking on pure profit above MSRP. And right now, those adjustments on certain RAV4 trims are reaching $3,000 to $7,000 or more.
What Dealers Actually Pay for a Toyota RAV4 (Invoice Pricing)
Before you can negotiate effectively, you need to understand the numbers. Here’s the reality that dealers don’t want you to see — the gap between invoice price (what the dealer pays Toyota) and MSRP (the sticker price).
2026 Toyota RAV4 Invoice vs. MSRP by Trim
| RAV4 Trim | Invoice Price (Est.) | Base MSRP | Built-In Dealer Margin |
|---|---|---|---|
| LE | $28,800 | $31,090 | $2,290 |
| XLE | $30,200 | $32,590 | $2,390 |
| XLE Premium | $32,500 | $35,090 | $2,590 |
| Adventure | $34,000 | $36,690 | $2,690 |
| TRD Off-Road | $35,200 | $38,090 | $2,890 |
| Limited | $36,800 | $39,790 | $2,990 |
Note: Invoice prices are estimates based on available dealer cost data. Actual invoice may vary slightly by region and installed options.
That built-in margin of $2,000–$3,000 is already profit for the dealer — before any markup. On top of that, Toyota offers dealers holdback (typically around 2% of MSRP) and potential volume bonuses. So when a dealer tells you they’re “barely making anything” at MSRP, that’s simply not the full picture.
RAV4 Hybrid and Prime: Where Markups Get Truly Wild
The gas-only RAV4 markups are bad. The hybrid markups are worse. And the RAV4 Prime? That’s where things go completely off the rails.
| Model | MSRP Range | Typical Market Markup (2026) |
|---|---|---|
| RAV4 Hybrid | $33,090 - $41,290 | $2,000 - $5,000 over MSRP |
| RAV4 Prime SE | $44,090 | $3,000 - $7,000 over MSRP |
| RAV4 Prime XSE | $49,590 | $5,000 - $10,000+ over MSRP |
We’ve seen real listings showing RAV4 Prime XSE models with $8,000 to $10,000 “market adjustments” slapped right on the window sticker. That’s a $50,000 compact SUV pushed to nearly $60,000 before taxes and fees.
As Ray puts it: “Just because they CAN charge it doesn’t mean you should pay it. There’s always another dealer.”
What You Should Actually Pay for a RAV4 in 2026
Wondering how you can put this knowledge to use saving you money in 2026? Here are the numbers you should walk into the dealership armed with.
Gas-Only RAV4: Target MSRP or Below
For the standard (non-hybrid) RAV4, inventory has improved enough that you should not be paying over MSRP. Period. In fact, depending on your market and willingness to be patient, here’s what to target:
- Good deal: MSRP (no markup, no added dealer accessories you didn’t ask for)
- Great deal: $500–$1,500 below MSRP
- Exceptional deal: Invoice + $500 (possible on LE and XLE trims sitting on lots 45+ days)
If a dealer won’t budge off a markup on a gas RAV4, walk away. There are plenty of them on lots right now.
RAV4 Hybrid: Pay MSRP, Maybe Slightly Under
Hybrid inventory has improved compared to 2023–2024, but it’s still tighter than the gas model. Your targets:
- Good deal: MSRP with no added markups or mandatory accessories
- Great deal: $500–$1,000 below MSRP
- Walk away if: The dealer is asking more than $1,500 over MSRP
RAV4 Prime: Be Strategic, Not Desperate
The Prime is the toughest nut to crack because Toyota allocates so few to each dealer. But that doesn’t mean you should light money on fire:
- Acceptable deal: MSRP to $2,000 over MSRP (given genuine scarcity)
- Walk away if: The markup exceeds $3,000 — expand your search radius instead
- Pro tip: The federal EV tax credit situation changes frequently. As of early 2026, make sure you understand whether the Prime qualifies for any credits at purchase, because that changes your effective price significantly.
How to Avoid RAV4 Dealer Markups: 7 Proven Strategies
Knowing the right price is half the battle. Here’s how to actually get it.
1. Get Multiple Quotes Before Setting Foot in a Dealership
Email or message the internet sales departments of at least 5–8 Toyota dealers within a 100-mile radius. Ask for their out-the-door price on the specific trim and color you want. This creates competition and immediately reveals who’s marking up and who’s not.
2. Use CarEdge’s Free Deal Comparison Tools
At CarEdge.com, you can check what others are actually paying for a RAV4 in your area. Real transaction data beats guesswork every time.
3. Be Willing to Travel
Markup culture varies wildly by region. Dealers in the Southeast and parts of the Midwest tend to be more competitive on Toyota pricing than coastal metros. A 3-hour drive could save you $3,000–$5,000 on a RAV4 Prime.
These are the best states for car buying, but keep in mind that you’ll always pay sales taxes to whichever state you reside in.
4. Avoid Mandatory Dealer-Added Accessories
This is the sneaky markup. Dealers will add nitrogen-filled tires, door edge guards, all-weather mats, and paint protection — items that cost them $200 total — and charge you $1,500–$2,500 as a “dealer accessory package.” This is a markup by another name.
Ask specifically: “What dealer-installed accessories are included, and can they be removed from the price?” If the answer is no, that’s a red flag.
Check out our guide to dealer add-ons and fake fees.
5. Order Direct If You Can Wait
Toyota’s allocation system doesn’t work exactly like Ford or Chevy’s factory ordering, but many dealers will take a priority order or put you on an allocation list at MSRP. If you can wait 6–12 weeks, this is one of the best ways to get a fair price on a Hybrid or Prime.
Just make sure to get your out-the-door price in writing with the dealership when you place the order. You don’t want to play any games when your car finally arrives.
6. Time Your Purchase Strategically
End-of-month, end-of-quarter, and late in the model year (September–November) are when dealers are most motivated to move units and hit manufacturer bonus targets. That $2,000 markup in March might become an MSRP deal in October.
These are the best times to buy a car.
7. Know Your Walk-Away Number
Before you walk into any dealership, write down your maximum price. If the deal doesn’t hit that number, leave. Every single time. The most powerful negotiation tool you have is your willingness to walk away — and dealers can sense it.
As Ray always says: “The dealer needs to sell you a car more than you need to buy one today.”
RAV4 vs. the Competition: Are Alternatives a Better Deal?
If RAV4 markups are making your blood pressure spike, it’s worth considering whether a competitor might give you better value right now.
Models Worth Cross-Shopping
- Hyundai Tucson Hybrid — Comparable fuel economy, often available at or below MSRP, longer warranty. Strong value play in 2026.
- Honda CR-V Hybrid — Honda’s hybrid system is excellent. Availability has improved, though some markups persist on the Sport Touring trim.
- Mazda CX-50 Hybrid — The newest entrant in this class, with Mazda’s premium interior feel. Dealers are dealing to build momentum.
- Subaru Forester — Standard AWD, excellent safety ratings, and typically available with modest discounts. Less fuel-efficient but reliable. There is a hybrid option in 2026.
The point isn’t that these vehicles are better than the RAV4 — it’s that paying $5,000+ over MSRP for any vehicle is rarely a smart financial move when comparable options exist at fair prices.
The Real Cost of Paying a Markup
Let’s do the math that dealers hope you won’t do.
Say you pay a $5,000 markup on a RAV4 Hybrid XLE Premium. Here’s what that actually costs you:
- $5,000 in overpayment at purchase
- ~$900 in additional sales tax (varies by state)
- ~$1,200 in additional interest over a 60-month loan at 6.5% APR
- Total real cost of that markup: ~$7,100
And here’s the kicker: that $5,000 markup does not increase your vehicle’s resale value. When you go to sell or trade in, the car is worth the same whether you paid MSRP or $5,000 over. You’re just eating that loss.
Current RAV4 Market Trends to Watch in 2026
The market is always changing, and the data gives us clues about what might be on the horizon for RAV4 shoppers:
- Gas RAV4 inventory is normalizing. Days-to-turn (how long a vehicle sits on a dealer lot before selling) for gas-only RAV4s has increased to 25–35 days in many markets, up from under 15 days in 2023. That means leverage is shifting toward buyers.
- Hybrid supply is improving but still tight. Days-to-turn for the RAV4 Hybrid is around 10–18 days — better than the “sold before it hits the lot” days, but still a seller’s market.
- RAV4 Prime remains scarce. Toyota has modestly increased Prime production, but it’s still allocated in small numbers. Expect some premium until supply meaningfully increases.
- Interest rates matter more than markup. With auto loan rates hovering in the 6–7% range for well-qualified buyers, the total cost of the vehicle — not just the sticker — should be your focus.
Final Thoughts: Don’t Let Urgency Cost You Thousands
The Toyota RAV4 is a fantastic vehicle — there’s a reason it sells in huge numbers year after year. But a good car at a bad price is still a bad deal.
Here’s your takeaway: On a gas RAV4, you should be paying MSRP or less. On a Hybrid, target MSRP. On a Prime, don’t exceed $2,000–$3,000 over MSRP, and expand your search radius before accepting more. Never pay for mandatory dealer-added accessories you didn’t request, get multiple quotes, and always be willing to walk away.
The dealers marking up RAV4s by $5,000+ are banking on two things: your impatience and your lack of information. Now you have the information. Don’t let impatience be the thing that costs you thousands.
For personalized deal analysis and real-time pricing data, check out the tools at CarEdge.com — we’re here to make sure you never overpay.
Have a RAV4 deal you want us to evaluate? Share it in the CarEdge Community forum for others to chime in.
