2013Trail
New member
Now Toyota dealers are a whole different story, they GIVE their cars away at or below invoice to hit rebates/incentives. Now that being said Toyota may loose on the front(sell under invoice) but, they will make it up in the back(finance apr,warranty,gap,paint protection,alarm,ect....)
That's an unqualified general blanket statement. All the Toyota dealers that I visited before purchasing my 4R had add-ons that significantly marked up the price--and profit--of the vehicles they had for sale. Window tinting, window etching, pin striping, wheels/tires, lift kits, Scotchguard, weatherseal, braking enhancement systems, etc. There's nothing "in the back" about these intentional add-on profit makers. They are right up front and they are there for a reason--to make more money. They raise the "sticker" price of vehicles and the buyers have to start dealing at that new price instead of the original sticker price.
Most any dealer will do what it has to do to make its numbers because if they don't make their "numbers" they don't get their next allotment. But they're not going to give you anything they don't have to, and often they don't. Rebates are from the factory so dealers do not lose by offering factory rebates. If they give a customer, say, a $3500 rebate, that money is fronted by Toyota, and not out of their own pockets. But as has already been discussed, manufacturers also pay incentives to dealers. "We'll give you x-amount $$$ bonus, if you sell x-amount of these vehicles. But you need to know these things to get the best deal you can. Because dealers don't have to give you the rebate either. If they have the opportunity to keep it for themselves, they will.
When buying a new vehicle. I like to deal over the Internet. When shopping for my 4R I looked for one that was just placed on the lot and with no add-ons. I called the dealer(s) and specified that I wanted one equipped exactly as it came from the factory. I ask for their best Internet price, then I compare prices along with driving distance, dealer reputation, etc.--looking for the best overall deal for me. Then I go to the dealership, drive the vehicle, check it out as thoroughly as I can, then buy it.
There is huge profit for the manufacturers, however. If there wasn't they wouldn't be able to offer rebates to customers and incentives to dealers. Generally speaking they have lots of money to play with. I mean how else could they offer up to $10,500 in rebates? I got a $7500 rebate on my Isuzu Trooper when I bought it in 1999. That was nice: No haggling, no wheeling and dealing. I just went in, picked the color I liked, and drove away.
I don't think Toyota offers those kind of rebates. You can get them on American-made vehicles though, especially at this certain times of the year--like when new models roll out or near the end of the year. Like now.
"Invoice" is definitely a selling point and it is a real thing, but all we need to remember is to try to get the very lowest price that we can--out front, and "in back."