Toyota Forbids Dealers From Advertising New Vehicles Below Invoice

Toyota, taking a page from the Honda playbook, is preparing to forbid its U.S. dealerships from advertising Toyota brand vehicles at below-invoice prices.

Some Toyota dealers welcome the move, saying it will result in higher vehicle prices and improved gross profits.

Others, such as Earl Stewart, dealer principal of Earl Stewart Toyota in Lake Park, Fla., oppose the move. Stewart said he advertises 75 percent of the store's inventory below invoice and that is a key reason why his store is among the highest-volume dealerships of any brand in southeastern Florida. 

MDarringer - 8/24/2015 7:05:01 PM

-2 Boost

Toyota can demand all they want, but as long as they do not own the dealer, there isn't much they can do. Besides, dealers rarely sell below invoice. There is the public invoice and the real invoice. The REAL invoice has all the kickbacks from the manufacturer that simply AREN'T always public knowledge.

If a dealer sells at or below invoice, it just means they have kickback money.

The reason Toyota does not want advertising below invoice because that tips customers off as to what the real invoice is.

markem26 - 8/25/2015 12:26:56 AM

+3 Boost

Unfortunately you don't know what you are talking about. Like many of the your posts.

MrEE - 8/24/2015 8:30:22 PM

+2 Boost

It is well established that price discounting can be restricted, is true of many products, Apple products being one well known, though the enforcement is likely pulling the resellers distribution. Toyota just doesn't want customers shopping prices out of area and putting pressure on low volume dealerships. Does not say dealers cannot sell below, just not advertise the price. Not sure what this will mean to Truecar that will readily give below invoice prices.

nguyenvuminh - 8/25/2015 1:53:18 PM

+1 Boost

Be careful markem26, you're talking to someone who doesn't sell cars, he has a "stake" in the auto dealership so he knows everything. He even turned down an Audi dealership so that he "has a stake" in Ford or FCA dealership now.