Toyota to ban below-invoice advertised pricing
Toyota is set to roll out new guidelines that will prevent dealers from advertising vehicles at below-invoice prices, a new report finds.
According to Automotive News, Toyota will announce the new advertising rules at the company’s upcoming dealer meeting in Las Vegas. The new regulations will bar Toyota dealers from advertising new vehicles in print, online or in broadcast media for below-invoice prices. Violators would be subject to penalties, including marketing assistance from Toyota. In some cases that could amount to $400 per vehicle.
Toyota declined to comment on the matter, but it is believed that the new advertising guidelines will be put into place on January 1.
Toyota rival Honda already has a similar set of rules in places for its dealers. Honda claims its dealer pricing policy is one of the reasons its vehicles have among the strongest residual values in the industry.
The timing of the pricing plan follows closely on the heels of Lexus‘ announce that it will test out a new no-haggle pricing scheme at some of its U.S. dealerships. Toyota’s luxury division is currently test driving the pricing program at 12 U.S. dealerships.