Toyota is following in the footsteps of Honda and will soon roll out new dealer guidelines when it comes to advertising. According to Automotive News, those new regulations will forbid Toyota dealers from advertising new vehicles in print, online or in broadcast media for below-invoice prices. Dealers who violate the rules would be subject to penalties, including losing incentives for multiple offenses.
Toyota isn’t commenting on the matter, but the automaker will reportedly announce the new advertising rules at the company’s upcoming dealer meeting in Las Vegas in early September. The new rules would go into effect in January.
Honda dealers are already banned from advertising vehicles below invoice whether in print, online or broadcast media. Honda claims the dealer pricing policy is one of the reasons its vehicles have among the strongest residual values in the industry. After three offenses in one year, a dealership can lose its marketing assistance, which can be $400 per vehicle for many dealers.
The timing of the pricing plan follows closely on the heels of Lexus’ recent announcement that it will test out a new no-haggle pricing scheme at some of its U.S. dealerships. The Car Pro’s Jerry Reynolds gave us his take on the plan in his recent advice column you can check out here.