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Sunday, September 13, 2015

Toyota Dealers Told Low-Ball Ads No Longer Allowed


Toyota tells dealers that below-invoice ads are taboo

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. Those include enticing customers with extremely low prices, then pleading that the particular vehicle isn’t available when the customer comes to the store or the low price was based on a laundry list of undisclosed incentives for which the customer doesn’t qualify.

Honda has banned below-invoice pricing for years.

Toyota dealers who violate the rule will be issued a warning for a first offense, according to a dealer who attended a session at Toyota's national meeting, where the ad covenants were detailed. Then, for a second offense, the store could forfeit factory marketing incentives of up to $450 per vehicle for the entire month during which the offense occurred, said the dealer who asked not to be named.