Toyota Advertising Fees

tk865 · February 2003

but the charge is legit. (It's in the fine print at Edmunds and kbb) It's a fee Toyota levies on dealers by region to help pay for Toyota's regional ads. Sounds like you're looking at a "Dealer Daily" invoice, the internal system Toyota dealers use to track inventory, do dealer locates, etc. You probaly also see "Destination Charge," "Gasoline," Dealer Holdback," and "Whsl. Financial Reserve." Undertand, these aren't charges to the customer, they are charges to the dealer which are passed onto the consumer, as n any other retail product. The confusion comes when consumers see these itemized on the invoice. The only charge here that is ever negotiable is "Holdback," usually on domestic vehicles. I've not seen a Toyota dealer in Cincinatti region negotiate this, though you're free to try it, it may hurt you more than help, depending on the dealer. One tip - instead of worrying too much about the invoice (though it's good to know), ask for an "Out the Door" price... That way they can't throw in any surprise fees/charges at the end. Good luck and happy hunting!

peekayem · February 2003

Thanks a lot tx865

crv16 · February 2003

TDA is another excuse for dealers to tack on another fee.

I just bought a 2003 Sienna at www.autofair.com (Manchester, NH) at that same discount you are referring to (Invoice, less $2,000). The only thing extra was $117, which included a document fee, title fee and temporary plate fee.

peekayem · February 2003

Thanks a lot crv16 for the update.
I've send autofair.com an email for a price quote on the above model; asking for an "Out of the Door" Price. Thanks for mentioning the TDA thing.

tk865 · February 2003

but it's not the dealers doing it, it's Toyota. Some online sites may not have this fee, that's between them and Toyota. Toyota charges it to all the dealers though, and the dealers pass it along. I recommend trying the site he mentioned and autobytel if you want to avoid paying it. They may have some sort of way around it. That, and it's also possible that TDA was already included in "invoice". TDA is a part of the invoice, so if you bought it for "Invoice" less $2,000, chances are you paid TDA, you just didn't have it broken down to you. Invoice is:
Base Model
+Options
+Destination
+TDA
+Holdback
+Financial Resv
+Gasoline

The resulting amount is Invoice. If TDA is not included, then where do Holdback/whsl, and destination come in?

Just curious - if you did get a breakdown that showed holdback, etc., but not TDA, then you did manage to get around it - like I said, some of the "direct" sites may have an arrangement with Toyota so they don't have to pay it.

peekayem · February 2003

I tried autofair.com; their Invoice Price is Base+Options+Destination+TDA+Gas. On this price they're willing to offer 2K discount. Does anyone know of any "Direct Sites" that does not include the TDA as the Dealer's Invoice Price.

peekayem · February 2003

A stupid question!! A dealer in NH told me that in NH there is no Sales Tax. I live in MA, where I have to pay 5% Tax. On a 21K car, the tax is over 1K. So, buying a car in MA means to pay $1000+ more. If one buys the car in NH; then registers it in MA - is there a way he can avoid paying the tax?

CarMan@Edmunds · February 2003

Hi peekayem. It's not a stupid question at all. Unfortunately, there is no way that you can avoid paying your home state's sales tax when purchasing a vehicle. Even if you purchase your new vehicle in New Hampshire where there is no sales tax, you will have to pay Massachusetts taxes on it when you go to register it in your home state.

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tk865 · February 2003

Looks like I misspoke - even the direct sites have TDA. Makes me feel a bit better - I worried Toyota was really giving Toyota Dealers the shaft! If you're interested, peek, there is a short but sweet archived thread (search for "TDA") that says everything that's already been said. I degenerates into a bit of mud-slinging, but it does help explain why TDA is actually a dealer cost, not an "added charge." Hope all this helps, and best of luck in your search!

crv16 · February 2003

All dealers have regional advertising compacts, to which they contribute money. That goes for Honda, Nissan, Mazda, etc.

Toyota is the only one where it stubbornly seems to show up as an extra "cost". It's simply a cost of doing business, as are financing costs, building costs, utilities, property taxes. You don't see dealers adding fees for each of those items, do you?

It's an insult to my intelligence to see these stupid little "fees" tacked onto Toyotas.

peekayem · February 2003

Hi:
I'm negotiating with Ira Toyota, MA for 2003 Sienna CE (w/HX+EF) and I believe they've quoted competitively at $19,949 + Taxes, docs. Now, I've a couple of questions; before I finally sign the Purchase & Sales Agreement -
1. How much of a benefit!(I know that this is a vague term) does the extended warranty cover i.e. if I want to do some reading on this, can somebody point me a link.
2. An alarm is a optional thing - even if I take an extended warranty -- is this a true statement? I know that an alarm brings down the Insurance, but by what % .. any feeback on this?
3. I would like to know what is a "reasonable" price to negotiate with the dealer on the above 2 items. Do I had to get it from the Dealer I'm buying or it can be any dealer?
Lastly, thanks a lot to Edmunds.com and all its user-community which has educated me tremendously on my car buying experience. I feel more knowledgeable and confident now .. it has been fun!

montanafan · February 2003

I believe all manufacturers list their advertising contributions as a seperate line item. This is done for accounting reasons. Look at your paycheck, aren't the deductions itemized? Same for a vehicle invoice. Because they cover different things or go different places, they require differnt account numbers and are listed seperate. Nothing sinister, just the accountants in charge.

tk865 · February 2003

Only recently has Toyota gone to using the "Dealer Daily" invoice as THE invoice. We used to get a physical invoice from Toyota, which just had the bottom line, and then in fine print, mentioned a holdback of 2% or whatever was included in that price. Now we use DD invoices (oh, the joy of a "paperless" workplace), which, as they were never intended for the consumer, break down every little charge. That's why the "Preferred owner's Portfolio," which is basically a little plastic sleeve to keep the books in, is listed at "No Charge" on MSRP, but "$6.00" on the invoice. The dealer pays $6.00. It's assumed that the dealer will more than make up for this when they sell the vehicle, so the cost is not listed in MSRP. When you start dealing off invoice, you start getting into what the dealer is paying, which is usually a good bit more than you think. I agree with all of those who have posted to say: "Figure out what YOU want to pay." then, depending on your favorite strategy, a.) call dealers offing this number (OTD) until you get a buy or b.) "FAX (or net) ATTACK" several dealers, and whoever goes farthest below that price wins. If you worry about every little line on the invoice, you'll feel cheated even if they had you the keys in exchange for a sandwich and a soda.

peekayem · February 2003

christopherp · February 2003

As you probably know, the 2004 Siennas are due out soon which means the dealers need to move the 2003 models. Here in Massachusetts, dealers are offering discounts of up to $5,000 on the 2003's.

junepug · November 2003

It seems to me that the Camrys built in Kentucky do not have Toyoguard. Our 02 Camry came from KY and I must say it is the best car we have ever had. There have been no problems or rattles to date.

jettaracer · August 2005

I've been reading these comments, and one thing is for sure  Toyota likes to charge big fees! Document fees are like $600. Dealer fees are like $600+. And of course destination charge is already on the sticker $500+. Then there's pinstripe $200+ and $600+ for a bottle of "Toyoguard" shampoo for your car! However, this isn't unique to Toyota in SE FL. Honda, VW, Hyundai, all have similar fees. :surprise:

pizzasanta · November 2005

where is the best place to buy a toyota in the new england area,

Kirstie_H · November 2005

Can you tell us what model you're looking for?

This isn't the best discussion for your question, but we can help you get to the right place.

pizzasanta · November 2005

I am looking for a extra cab tundra v-8 4x4 with the off road pkg (trd) not sure if i want the sr-5 or the limited,dont really know the difference between the two.Thank you for any help that you can offer to me.

pizzasanta · November 2005

Thank you but i just finished a deal with Boch Toyota in norwood ma,

jipster · March 2006

Have somebody else pay for Toyotas constant barage of t.v commercials and newspaper ads.

kfrie · April 2006

I figured out that T.A.F. meant Toyota Advertising Fund, but I am stumped by the T.M.F. one... and it is $449. In addition, i am supposed to pay Destination fee of $635 + $400 because it is not "in stock" - not sure this is right.

Any thoughts?

stryker2 · April 2007

Can someone give my the history of how Toyota arrived at distribution arrangements that put a hungry middleman between the company and the dealer/purchaser?

The additional fees that are charged the dealer in the Southeast appear to be passed on to the unwary purchaser as Toyoguard "mop and glow" add ons that come surprisingly close to the invoice cost of SET fees...

Because of the crazy add ons to etch VIN's in windows, seal paint, etc. loaded cars with options that people really want (like Nav, premium sound, leather, sunroofs) are rare.

The reality of this arrangement results in distributor/middleman making an exorbitant profit that hurts Toyota, the local dealer AND the purchaser. If Toyotas were not in such high demand, this might seriously effect sales...

What do you folks think? Is Toyota locked into this crazy arrangement indefinitely? :confuse:

oldfarmer50 · April 2007

I hope this isn't some sort of rust proofing. Thr Toyota I bought rusted through in three years and by year 12 had almost turned into a pile of dust. Worst vehicle I have ever owned.

Toyota Advertising Fees

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