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JSAC16

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Discussion starter · #1 ·
There have been reports from Japan that there is an update to the interior of the RAV4 coming for the 2023 model that will be announced in October of this year. The rumors are that the instrument cluster will go from the current 7in to a 12.3in digital display, and the infotainment will go from the 9in to a 10.5in display. It will also have Toyota's latest system like the latest NX. The link is below.

We are interested in purchasing a RAV4 Prime, but do not know if we should wait for the 2023 model. According to reports it looks like the $7,500 tax incentive will not be available after June this year. We are in line to get one before June, so we could potentially purchase one with the incentive. We think the infotainment system in the current Rav4 is a weakness, as it looks dated compared to the competition. However, it may not be worth losing out on the $7,500 incentive just for a nicer infotainment system.

A couple questions:
1. How accurate do you believe the rumors about new infotainment in the 2023 model are?
2. Would you risk losing the tax incentive for a new infotainment system?
3. When the tax incentive goes away do you think the price of the 2023 Prime will come down? I ask this because the new Toyota bZ4X is supposed to be starting at around $36k, while the Prime starts at $39.8k. My guess is that people will be cross shopping these two models.

 
Re: tax credit... Once a manufacturer hits the 200k vehicle cutoff, the full tax credit is still available for the next quarter after the quarter in which the 200k limit is reached. It's not a hard stop. Then after that, the credit is phased out at 50% for the next two quarters and then 25% for the next two quarters. Then it's gone for good.

So if Toyota hits 200k vehicles in Q2 2022, then the phase out looks like this.

2022 Q3 - Full credit $7500
2022 Q4 - 50% credit $3750
2023 Q1 - 50% credit $3750
2023 Q2 - 25% credit $1875
2023 Q3 - 25% credit $1875
2023 Q4 and on is then 0%

I might be off a bit on the specifics, but the point is that you'll still be eligible for some credit if you decide to wait.
 
As far as tech goes... The new infotainment system looks nice, but as with all tech, something new is going to come around the next year. So always waiting for the next big thing deprives you of enjoying what's out there now! All depends on how important that feature really is to you.
Agreed. As soon as you get your shiny 2023 you’ll hear about the new redesign for the 2024 model. You can keep doing this forever or just enjoy what you have (for a few years at least).

There are some things (like an upgrade to a solid state battery, etc) that might get me to want to buy new after only a year of owning my Prime, but I gotta say, infotainment is not one of them. The current system with apple carplay works great for my needs. Better display resolution would be nice, but it’s not going to fundamentally change my day to day experience with the car. But YMMV.
 
Re: tax credit... Once a manufacturer hits the 200k vehicle cutoff, the full tax credit is still available for the next quarter after the quarter in which the 200k limit is reached. It's not a hard stop. Then after that, the credit is phased out at 50% for the next two quarters and then 25% for the next two quarters. Then it's gone for good.

So if Toyota hits 200k vehicles in Q2 2022, then the phase out looks like this.

2022 Q3 - Full credit $7500
2022 Q4 - 50% credit $3750
2023 Q1 - 50% credit $3750
2023 Q2 - 25% credit $1875
2023 Q3 - 25% credit $1875
2023 Q4 and on is then 0%

I might be off a bit on the specifics, but the point is that you'll still be eligible for some credit if you decide to wait.
When I picked up my 2022 R4P yesterday, the salesman told me that its been confirmed, Toyota hit 200,000 in the 2022 Q1 already.
 
3. When the tax incentive goes away do you think the price of the 2023 Prime will come down? I ask this because the new Toyota bZ4X is supposed to be starting at around $36k, while the Prime starts at $39.8k. My guess is that people will be cross shopping these two models.
IMO some people will cross shop R4P and bZ4X, but many won't. I specifically wanted a PHEV as a goldilocks solution to overcome range anxiety on trips. I have no interest in the bZ, rebate or not. (and my spring break in Destin reinforces that. I think everyone in the country was down there last week, and I could count the # of L2 chargers within 5 miles on about 3 fingers. The Prime don't care.

I don't think the price of just about ANYTHING is going to come down in 2023. IMO folks that are rebate motivated will cross shop Toyota against other nameplates that are under the cap if/until some new incentive comes down from the hill.
 
The RAV4 Prime is a terrific CAR, it's doesn't have terrific TECH. Lots of people have bought Tesla's with terrific tech and have problems with the car. Do you want something reliable that moves or is a 4k touch screen more important to you?
By the time Toyota puts the NX450h tech in the R4P it will probably cost you an extra $10k more than the 2022.
Why wait? You could be enjoying it now. IMO.
 
The RAV4 Prime is a terrific CAR, it's doesn't have terrific TECH. Lots of people have bought Tesla's with terrific tech and have problems with the car. Do you want something reliable that moves or is a 4k touch screen more important to you?
100% truth. I needed the mobile Tesla mechanic 5x per year with my $200K car and lost my mind. The rattle in the front end came back after they replaced a bunch of parts in the front end and then told me too bad the new parts are the same so they are not replacing the front air struts again. Traded it for a R4P, no regrets. Tesla = fun cars, shitty company.
 
100% truth. I needed the mobile Tesla mechanic 5x per year with my $200K car and lost my mind. The rattle in the front end came back after they replaced a bunch of parts in the front end and then told me too bad the new parts are the same so they are not replacing the front air struts again. Traded it for a R4P, no regrets. Tesla = fun cars, shitty company.
Anyone here buying a 50K RAV4 could buy a Tesla, but we all choose a reliable Toyota :) . Thank you for your response.
 
Anyone here buying a 50K RAV4 could buy a Tesla, but we all choose a reliable Toyota :) . Thank you for your response.
Tesla does not care one tiny bit about existing customers, their sole focus is to get new customers. It's a shame because if it wasn't for such poor quality relative speaking I would have bought a new Plaid. They're just not worth the rattles, clunks, failures, etc. Besides I don't live close to a service centre either. A guy I know that lives down the street got a Model 3 a month ago. He already had it towed to service for no cabin heat, then the very next week the 12V battery died and had to be towed again. I told him to not treat it as a primary car. He's quite disappointed because the last time he had service he had to leave home at 5am to get there in time for the Appt and the be told they need to get more parts and come back at a later date. He said he plans on selling it after summer, he wants to enjoy it for a few months and then dump it. It was his dream car... (was)
 
Discussion starter · #13 ·
Thank you all for your responses. I think we will purchase the car if it becomes available and the tax incentive still applies.

This week Toyota announced that the 2023 Highlander and the 2023 Venza will come with Toyota’s new infotainment system. My guess is that later this year Toyota will announce the same for the RAV4. It’s unfortunate that the tax incentives are phasing out this year, but I don’t think the vehicle is worth the price without it. So we will take outdated interior and take advantage of the $7,500 tax incentive.
 
Thank you all for your responses. I think we will purchase the car if it becomes available and the tax incentive still applies.

This week Toyota announced that the 2023 Highlander and the 2023 Venza will come with Toyota’s new infotainment system. My guess is that later this year Toyota will announce the same for the RAV4. It’s unfortunate that the tax incentives are phasing out this year, but I don’t think the vehicle is worth the price without it. So we will take outdated interior and take advantage of the $7,500 tax incentive.
Great. as you indicated, there is an upgrade to the infotainment system. And seems to be a good upgrade with wireless apple carplay and android auto. I am in same situation where i might be able to get RAV4 prime PP later this month. Would it make sense to get one at this time? I was thinking how will this upgrade will impact resale value down the road.
 
Discussion starter · #15 ·
Great. as you indicated, there is an upgrade to the infotainment system. And seems to be a good upgrade with wireless apple carplay and android auto. I am in same situation where i might be able to get RAV4 prime PP later this month. Would it make sense to get one at this time? I was thinking how will this upgrade will impact resale value down the road.
I think it depends on what you value and if you are willing to give up the $7,500 credit. We tend to keep our cars for about 7-10 years, so for us having the upgrade is important. Like I mentioned the gage cluster and infotainment in the current Prime are outdated compared to other brands, and we don’t want to pay $45k for a brand new car that feels outdated.

I am not sure how it would affect resale value, but the new infotainment system will have over the air updates. This means Toyota will be able to update the system for years down the road. The downside is that this system is coming with subscription services, and the map system is stored in the cloud which means that if you don’t have service the maps won’t work.

If the new tech is not important to you then I think taking advantage of the $7,500 is the way to go. If you want to learn more about Toyota’s new system, the video below does a good job.

 
Great. as you indicated, there is an upgrade to the infotainment system. And seems to be a good upgrade with wireless apple carplay and android auto. I am in same situation where i might be able to get RAV4 prime PP later this month. Would it make sense to get one at this time? I was thinking how will this upgrade will impact resale value down the road.
You won't get the 7,500 tax break on a 2023 model if that's important to you. You probably won't get the 2023 model till January, the earliest.
You can buy now and add this for $203. Almost the same as the 2023 Infotainment upgrade:
 
And as soon as this rolls im afraid it’s going to be obsolete (as the tech story goes).

Check out the new CarPlay announced today. I doubt this is coming to the Toyota platform any time soon as Toyota is trying (imo unsuccessfully) to monetize tech. They need to hang it up and let the big boys handle it.

 
And as soon as this rolls im afraid it’s going to be obsolete (as the tech story goes).

Check out the new CarPlay announced today. I doubt this is coming to the Toyota platform any time soon as Toyota is trying (imo unsuccessfully) to monetize tech. They need to hang it up and let the big boys handle it.

As much as I like the current state of carplay THAT looks way too fiddly and just asking for problems. Plus I seriously doubt automakers will opt to pay the exorbitant fee this will likely require and give up complete instrumentation and infotainment+HVAC control to Apple and the customer complaints of losing physical buttons as well. It would significantly raise the price of a new vehicle if this was widely implemented. I just don't see this being mainstream for a long while.
 
It seems like so many car makers are doing away with buttons, dials and their associated wiring to lower costs. This concept seems to be coming to Toyota 2023 on some RAV4 and other models. Since Toyota has invested so much time and money building their own multimedia system from the ground up, Toyota may never add all these Apple features to CarPlay.

We went from dial phones to touch button phones to capacitive phones, and we like it better.

In order to compete with so many other car makers lining up to adopt this technology, I see this happening sooner than later.

The big issue for Toyota is $80 per year for each service. No one likes that when CarPlay is free for the consumer.
 
I think it depends on what you value and if you are willing to give up the $7,500 credit. We tend to keep our cars for about 7-10 years, so for us having the upgrade is important. Like I mentioned the gage cluster and infotainment in the current Prime are outdated compared to other brands, and we don’t want to pay $45k for a brand new car that feels outdated.

I am not sure how it would affect resale value, but the new infotainment system will have over the air updates. This means Toyota will be able to update the system for years down the road. The downside is that this system is coming with subscription services, and the map system is stored in the cloud which means that if you don’t have service the maps won’t work.

If the new tech is not important to you then I think taking advantage of the $7,500 is the way to go. If you want to learn more about Toyota’s new system, the video below does a good job.

Thanks JSAC for your view and sharing this video. Very informative.
 
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