Waiting lists around the world for the new Toyota Prado are filled to the brim, something the company warned us might happen back when it first unveiled the luxurious off-roader.
And, once again, we are seeing used-car dealers taking advantage of the situation by selling “pre-owned” Prados for far above the recommended retail selling price.
This isn’t the first time something like this has happened.
We also saw these predatory practices in 2022 during the Covid-19 pandemic, when dealers exploited consumers by selling normal vehicles for as much as 61% above sticker as a result of limited stock availability.
While there was justification for doing so back then when market conditions were unique, things have largely returned to normal by now, meaning dealers still selling low-mileage, “pre-owned” vehicles today for more than what they are really worth due to limited supply are simply trying to squeeze buyers for all they have.
A look at the market
A quick search for new Toyota Prados on the used-car market reveals that consumers who are itching to get one of these vehicles but do not want to wait in line will have to fork out at least R72,000 more than if they were to buy directly from Toyota.
For instance, at the time of writing there are 23 examples of the base Prado TX listed for sale on AutoTrader with prices ranging from R1,368,900 for a model with 0km on the clock to R1,499,999 for one that has done 100km.
This is a premium of between R72,600 (6%) and R203,699 (16%) when compared to the manufacturer’s suggested retail price (MSRP) of R1,296,300.
Things get a bit more extreme if you’re after one of the more premium Prado specifications.
The VX-R sells new for an already hefty sum of R1,448,900.
As a “used” vehicle, you can choose between four units all with under 100km on the motor listed for R1,445,900 to R1,699,900.
Admittedly, one of these is ever-so-slightly below what Toyota dealers ask, however, the rest are anywhere from R201,100 (14%) to R251,000 (17%) more expensive.
Perhaps the most extreme example of price gouging; there is one pre-owned Prado First Edition which has done a grand total of 45km for sale at R1,749,500.
You can get this model for R1,462,400 directly from the manufacturer if you’re willing to sit on your hands and wait a bit, indicating that whoever is trying to sell it is attempting to fleece an extra R287,100 (20%) out of the buyer’s pocket before stock levels normalise.
Used-car platform getWorth recently highlighted that many car buyers who purchased their wheels at bloated prices during the market turmoil in 2021 and 2022 are still suffering from a “post-Covid hangover.”
It’s now been a few years and these individuals are starting to think about selling their cars, however, many of them still owe much more than what the vehicles are worth due to prices having normalised to pre-pandemic levels.
As such, the prices they are offered today usually can’t cover the outstanding loan as they purchased their cars from pre-owned dealers for well above the MSRP, essentially leaving them with two options: either sell the vehicle and pay the shortfall out of their own pocket, or drive it until it reaches the break-even point.
The term is referred to as being “underwater”, and getWorth estimates that one in five vehicle owners in the country is currently stuck in this situation.
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