PDA

View Full Version : Toyota Dealer Invoice- Advertising Fee and Holdback


TexasTom
04-12-2010, 06:47 PM
I'm looking into buying a 2010 Camry LE to replace my 1999 Camry. The incentives are $500 cash, 0% finance and two-year free oil changes.

This is a high volume dealer. The salesman showed me the dealer invoice. The T.F.C item (for advertising) is about $600 and something holdback is $400. He said these are non-negotiable. I thought the holdback is for the them to get money from Toyota Corporation, not me paying for it.

If these two items are eliminated, I would probably buy it.

Do you think those two are profit for them, or they are the dealer's real expenses?

My Camry has about 232,000 miles and still running great. Need to add motor oil between oil changes and the serpentine belt squeal once every two weeks. I'm really in no hurry but the incentives are real good. Last month it was $1000 cash incentive, instead of $500 now.

So should I try another dealer in town? Would they do the same? Your opinions please.

Thanks,

TexasTom

msmayor
04-12-2010, 07:08 PM
Generally, I'm not one to try and negotiate individual things off an invoice.

I've found that often the best strategy is to ask the dealer what his best "out the door" price is. One number, all taxes/fees/etc. included. Negotiate off that number. This way, you don't need to care about what he does to the individual items on the invoice. He can massage those individual numbers however he wants with regard to his dealership...but you know that the bottom line price is one you are happy with.