How Toyota Dealer Incentives Can Help Get You a Great Deal on a New Toyota

When you know about all of the hidden ways that car dealerships hide profits in each of the cars they sell, you’ll be in the driver’s seat when negotiating the best deal possible on a new Toyota.

There’s no need to overpay for your new car when you can request a free, no-obligation-to-buy Toyota price quote and receive all the information you need to negotiate a sweet deal on a new Toyota. Learn the dealers’ true cost for the car you want to buy, along with current available customer rebates and incentives.

• Hassle-free, haggle-free Toyota buying experience
• Find available no money down Toyota offers
• Available 0% APR offers and special limited-time-only offers
• Low available monthly Toyota payments
• Free, no-obligation Toyota price quotes

The Four Things You Need To Know About Toyota Dealer Incentives

It’s easy to understand Toyota customer incentives, such as cash-back rebates, zero or low-interest APR financing and other types of incentives offered to car buyers directly from Toyota. Toyota dealer incentives work differently, however, but can still help you negotiate a lower purchase price on your new car.

So what exactly are Toyota dealer incentives? Here’s what you need to know to have more leverage when negotiating a great deal on a new Toyota:

1. Toyota dealer incentives are factory-to-dealer incentives that lower the amount the Toyota dealer really pays for a new car from the factory. Toyota and other automakers offer these incentives (normally regionally) to drive sales on specific models. What this does is spur competition among the regional Toyota dealerships to move the slower-selling Toyota models. For example, a Toyota dealer incentive may kick in once a certain sales goal is achieved and consequent sales lead to higher factory-to dealer incentives or rebates.


2. So how can these Toyota dealer incentives benefit you? Firstly, it’s important to note that the Toyota dealership is under no obligation to share these incentives with you through a lower purchase price. While the customer incentives are yours, you’ll have to negotiate with the Toyota dealer to benefit from their incentives.


3. The good news, however, is that when dealerships are nearing their sales goals, they may be much more willing to give you a great deal in order to get their bonus money. When you’re aware of their incentives and what they stand to lose if they don’t make a sale, you can use that as leverage during negotiations.


4. Even if an incentive doesn’t apply to a specific model, dealerships are much more willing to bend on the sales price of a car that’s been taking up space on their lot for a few months as they’re paying overheads.

Hidden dealer profits don’t stop at the factory to dealer incentives; let’s talk now about the profit generator no car dealership wants you to find out about: The dealer holdback.

• Simply put, the dealer holdback is normally between 2%-3% of either the factory invoice price or the MSRP. So when the manufacturer invoices the dealership for a new car they ‘inflate’ the invoice by that predetermined percentage. Why is the dealer so secretive about the factory invoice price?


• Firstly, the automaker knows dealerships have to finance the cars they buy from the factory and the holdback supplements the dealerships cash flow. By inflating the factory invoice price, the dealership can obtain a higher credit line.


• The holdback also serves as assistance with overhead costs, such as advertising and marketing. You know those new car ads you see on TV where a dealership says they’ll sell you a car for $500 above their factory invoice price? That makes it sound like they’re only making $500 on the sale, when in fact it’s far more than that.


• Don’t confuse the ‘holdback’ with the other incentives you read about (dealer-to-factory incentives). They’re completely separate. When you factor in all of those regional, quarterly and end of month sales incentives, bonus money etc. and then combine them with the dealer holdback, well, we’re talking about a lot of profit that’s hidden in every car they sell.


• Knowing about all of the money the dealership and car salesperson stands to lose if they don’t make a sale puts you in the driver’s seat for negotiating a great deal. Competition is fierce and they know that if they don’t work with you, you can just as easily go down the street to one of their competitors.

That’s why when you request your free, no-obligation Toyota new car price quote you’ll receive pricing information from multiple Toyota dealerships. You can use this information to pit the dealerships against each other.

Toyota Customer Rebates & Incentives

The Toyota customer rebates and incentives are offered to you and have absolutely nothing to do with Toyota dealer incentives. To give you a clearer idea of how Toyota customer incentives and rebates, combined with your knowledge of the Toyota dealer incentives, can help you get a great deal on a new car, here are a couple of examples of current Toyota incentive offers.

Please keep in mind these are only for illustration purposes and, like any other manufacturer, Toyota puts an expiration date on customer rebates and incentives. In this example, the offers expire 4/2/12.

• Regional cash rebates up to $500 on the Toyota Venza & the Toyota Tacoma
• 2012 Sienna has a 0.0% APR financing offer for 36 months

The good news for you is that even though the above incentives, along with other rebate and incentive offers, may have expired, when you receive your free Toyota price quote you’ll receive the most current available customer rebates and incentives being offered in your area.

With your Toyota price quote you’ll also receive pricing information, along with special internet incentives that Toyota dealerships are offering.

When you have Toyota dealerships compete, knowing about their hidden profit margins, you’ll be able to negotiate in confidence for a great deal on a new Toyota car or truck.