Selling over MSRP

[arf1410]

A low level employee at a Toyota dealer in the Seattle metro area told me that Toyota does not allow them to sell vehicles for over MSRP. I really find that hard to believe, unless it's the least enforced rule in town...

Anyone know if there is any truth to this information, and Toyota just looks the other way most of the time?

[rfruth]

dealers can (and will) sell for over MSRP if people will pay it

[Dave_PH]

Originally Posted by arf1410

A low level employee at a Toyota dealer in the Seattle metro area told me that Toyota does not allow them to sell vehicles for over MSRP. I really find that hard to believe, unless it's the least enforced rule in town...

Anyone know if there is any truth to this information, and Toyota just looks the other way most of the time?

I worked with 3 dealers. They all had "Dealer Fees" and one had a $250 "Paperwork" charge on top of that. They were also charging $300 for license and registration. Take it or leave it so MSRP doesn't matter.

[SubyDude]

Originally Posted by Dave_PH

I worked with 3 dealers. They all had "Dealer Fees" and one had a $250 "Paperwork" charge on top of that. They were also charging $300 for license and registration. Take it or leave it so MSRP doesn't matter.

Hes probably talking about pure mark up. I used to work for a Honda dealership that marked up all hybrids as well as new vehicles(such as when the 2008 honda accords came out or new pilots). Now I work for a Toyota dealership that is STRONGLY against mark ups. We do not do it, whatsoever. We are also a Signature Dealership, im sure this plays a vital role in pricing. Everyone pays Doc fees(our dealership charges $55), Everyone pays registration. everone pays taxes, everyone pays a tire fee. The dealership will not retire off of a $250 Doc fee. Technically, you are not supposed to mark up vehicles. dealerships do it based on supply and demand. if you dont pay 2 grand over sticker, someone else will. thats the mentality at some dealerships. in todays market, MSRP on a Prius is a good deal. and thats my 2 cents

[arf1410]

I understand a lot of people pay more than MSRP, and many dealerships either directly or indirectly charge more than MSRP, but what I am trying to determine is if there was any truth to the statement that Toyota Motor Company (of North America?) contractually prohibits dealers from selling over MSRP, and therefore simply "looks the other way", or dealers find some technicality to get around that clause, or if I was simply told a false statement?

[sorka]

Originally Posted by arf1410

I understand a lot of people pay more than MSRP, and many dealerships either directly or indirectly charge more than MSRP, but what I am trying to determine is if there was any truth to the statement that Toyota Motor Company (of North America?) contractually prohibits dealers from selling over MSRP, and therefore simply "looks the other way", or dealers find some technicality to get around that clause, or if I was simply told a false statement?

There is no truth to it. Toyota dealers are not contractually obligated to sell at or below MSRP. The only thing that comes even close is their "Pure Pricing" model for Scion where they must display the price that they are selling Scions for inside the dealership in some location for all to see and is supposedly no haggle. They're supposedly supposed to sell at that price which is whatever price the dealer sets, so it's meaningless, especially since Toyota dealers will sell for less than the posted price and can be haggled down to invoice.

[jps000]

Sorry, can't answer the question directly. I bought my Prius at a dealership that is supposedly #1 in the nation for customer satisfaction (that's what their phone line and website say) and they had it marked up by about one grand. A dealer nearby sells only at MSRP. My point: I'm sure Toyota is aware of their #1 satisfaction dealer and would catch on to prohibited mark-ups....