Yahoo Autos The Toyota Tacoma TRD Pro Is Great. But Why Is It So Expensive?
Toyota calls the TRD Pro the “pinnacle of the Tacoma lineup,” and it’s easy to see why. With flashy air-cushioned seats, a punchy hybrid powertrain, and impressive handling on- and off-road, the TRD Pro is loaded with advanced features for a sophisticated off-road vehicle. In our off-road truck comparison, it was the one we favored most. But one question hovers over the TRD Pro: why is it so expensive?
The 2024 model comes in at a sticker-shock-inducing $65,395 MSRP, a $15,865 increase over the 2023 TRD Pro. Of course, the higher price has certainly come with an increase in performance; the new TRD Pro comes with the i-FORCE MAX hybrid powertrain with 326 horsepower and 465 ft-lbs of torque, IsoDynamic Sport Seats for supreme comfort on rough terrain, FOX QS3 internal bypass shocks, multi-link rear suspension, 33-inch all-terrain tires, and more. These upgrades certainly add value, but even as you’re cushioned by the air shock seats on bumpy terrain and feeling the pleasant pull of the hybrid powertrain, the high price is impossible to ignore.
One theory is that the price increase may be due to the notorious dealer markups that most prospective Tacoma buyers have become familiar with. On top of the MSRP, dealers have been known to throw in an additional “market adjustment” markup, which they claim accounts for high demand but practically punishes buyers for taking interest in a car that other people will also want. As the new 2024 model rolls out, dealerships are already taking the chance to mark up prices. At New Rochelle Toyota, an in-stock TRD Pro is priced with a $10,000 "dealer adjustment." Why? "The first reason is because we can, we can add an adjustment," a sales representative told Road & Track. "The second reason is because of supply and demand—there's a shortage."
These markups have become more common since pandemic supply-chain issues destabilized the market. Data from Edmunds.com shows that in 2019, the average transaction price for a Tacoma TRD Pro was $45,716.299, a $1,800.715 discount off MSRP. In 2024, average transaction price is $68,198.325, a $1,122.592 markup compared to MSRP. And while 2019 saw an average of 105 days to turn, today's TRD Pros have an average 10 days to turn.
While no one's happy about markups, Tom McParland at Automatch Consulting says they're probably here to stay. "I would probably expect anywhere from a 7 to 10K markup on most TRD Pros out there," he told Road & Track, adding that since Toyota simply doesn't make very many TRD Pros, demand will likely continue to exceed supply. McParland says he's honest with clients who have their heart set on a TRD Pro or other desirable enthusiast vehicle that it'll be highly difficult to get one for a price closer to sticker.
"The other problem," McParland says, "is that there's no real way to order what you want through Toyota." If you want a specific configuration from another manufacturer, McParland says it's easy enough for your dealer to request that configuration from the factory if they don't have it in stock. But at Toyota, there's less tailoring in the manufacturing process, making it harder to get exactly what you want.
"The dealer is going to say, 'Well, we can request what you want, but there's no real guarantee that Toyota is going to send us one.' Toyota just kind of makes them and they send them out again," McParland says. That means there's fewer options that fit a buyer's criteria, narrowing a limited supply even further and driving up demand.
Markups as a practice aren't exclusive to the Tacoma, either. They suck for buyers, and they also suck for manufacturers—that markup for high demand goes to the dealers, not the manufacturer. With that in mind, it's easy to think Toyota might look at the thousands of dollars buyers are paying on top of MSRP and wonder if it can get a piece of that itself.
According to Toyota, that’s not the case. “While Toyota considers the relationship with our dealers as an integral partnership, Toyota dealers are independently owned and operated businesses and we cannot mandate the actual retail price at which independent dealers sell their inventory,” the automaker told Road & Track. “Any potential market adjustment set by Toyota dealerships were not a consideration into 2024 Tacoma pricing.”
When questioned further about the basis for the nearly $16,000 increase in the TRD Pro's pricing, Toyota did not provide an answer.
Looking at the rest of the market, prices aren’t just high for the TRD Pro. Since 2020, prices for new cars have risen over 21 percent due to parts shortages and supply chain issues initiated by the pandemic, according to government figures cited by AP. In the first few months of 2024, rising prices have slowed down or dropped as supply replenishes, though AP notes that Toyota and Honda are among brands that have resisted discounts.
In our mid-size off-road truck comparison test, the Tacoma was the most expensive truck we tried, with a sticker that edges closer to bigger truck pricing levels like the upcoming Ram RHO and F-150 Raptor. This isn’t a truck that everyone can afford. Frankly, none of the trucks we tested are—the Ford Ranger Raptor is the closest to a “budget pick” at $57,215. We had a great time putting all of them through their paces, but the reality is, for now, off-road vehicles are only getting more expensive, leaving many enthusiasts behind. Is the TRD Pro worth it? Sure. But we can’t help wincing at the price.
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