Toyota Confirms To Dealers Apple Like Stance On Discounting Product

Toyota told dealers assembled at a national dealer meeting this week that they would no longer be permitted to advertise vehicle prices below invoice.

Toyota is implementing the prohibition beginning Jan. 1 and will begin enforcing the new ad covenants on April 1, Toyota confirmed in a statement Thursday.

As Automotive News reported last month, Toyota is following in the footsteps of Honda with its below-invoice advertising ban to help hold retail prices and prevent bait-and-switch tactics.

TomM - 9/11/2015 5:02:26 PM

+1 Boost

In the end - the law lets the "Seller" - which is normally the dealer - to set the price and does not allow the maker to set prices - so an advertising ban will not change much. The problem here is that Kia and Hyundai dealers have no such ban and can and often do offer really really low prices on their vehicles. For people who buy their cars through advertised specials - a Honda or Toyota dealer will no longer be able to come that close

MrEE - 9/12/2015 1:08:39 AM

+1 Boost

Below invoice is only when incentives are factored in. Some though have not disclosed their prices reflect limited incentives like new grad or military rebates. Anyway TrueCar data, not advertised prices are giving dealers the most headaches.