Quote:
Originally Posted by dieck
Cliffy's perspective is very accurate from a 20 thousand foot view. It's all supply and demand.
In my practical Toyota buying experience I've never had a dealer cannibalize TDA. It is an advertising fee that they pay. I have seen dealers cannibalize Dealer Holdback and Wholesale Financial Reserve. They are usually reluctant to do this, but if a vehicle is rolling on their lot and you buy it frictionless from them very quickly after it arrives they will sometimes pass this on to you. Apparently these line items are used to cover the dealer for having the vehicle on the lot for a certain duration. If they sell it more quickly, it is cash back in their pocket. If they sell it after 3 months it costs them more.
I've found that if you want the cheapest out the door price you often need to buy from a non local dealer who would otherwise not get your business and doesn't need to worry about additional follow up costs. The consequence of this though is then you depend on the local dealership to do your service and relationship. Some handle this ok some not so much.
If found most Toyota dealers are horrible to deal with for service or after sale activities anyway but there are some clear exceptions. I avoid going to the dealer like the plague.
If you work it right you can pay invoice, give the dealer a fair profit in the TDA and Holdback, and get in and out of the dealership in under a half hour.
Good luck!
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the only problem i have with your statement is that I would give a local customer a better deal any day of the week. I have a chance of making it back on them some day in service. A non local customer, I will never see again. So for me anyway. That statement is not true.