Hands down, the best negotiating method for high-demand vehicles like Toyotas and Hondas, is to stop just shopping for the model you want for yourself ... you can always do that.
Instead, you want to shop for the dealer who, for any of the reasons to be detailed here, has the most price flexibility to make the best deal.
In other words, you want to locate the most motivated dealer.
And, as you will see, they are out there because every dealership has their own unique financial situation. What's more, there's also an easy way to find them.
Toyota has built one of the strongest reputations in the automotive industry for quality, reliability, and resale value. That popularity also means Toyota dealers often have less pressure to discount than many competing brands.
So does that mean paying sticker price, or close to it, is your only option?
Of course not.
While some of Toyota's most sought-after models still command premium prices, today's market offers buyers more opportunities than many people realize. Understanding Toyota's current business environment, and knowing how to make dealerships compete for your business, can often save hundreds or even thousands of dollars.
Let's begin with the first question every buyer should ask.
Is Now a Good Time to Buy a New Toyota?
While not perfect, overall, yes.
Toyota continues to enjoy strong sales and one of the healthiest positions in the auto industry. Inventory has largely recovered from the shortages experienced a few years ago, financing options have improved for qualified buyers, and Toyota dealerships are once again competing for customers in many markets.
That doesn't mean every Toyota is heavily discounted. Popular hybrids and newly redesigned models can still be difficult to negotiate. However, many gasoline models, outgoing model-year vehicles, and higher-inventory dealerships are now offering buyers considerably more price flexibility than they did during the inventory shortages.
Toyota Has Strong But Not Invincible Pricing Power
Toyota doesn't usually need to rely on large rebates to sell vehicles.
Models such as the Camry, Corolla, RAV4, Tacoma, Highlander, and many hybrid models continue to attract strong demand because buyers trust Toyota's long-term reliability and excellent resale value.
When demand remains strong, dealers naturally have less incentive to negotiate aggressively.
The result ...
Shopping Strategy Is More Important Than Ever
Frankly, shopping strategy has become more important than negotiation skill.
Why Buyers Still Have Negotiating Opportunities
Even though Toyota remains one of the strongest automotive brands, Toyota dealerships still operate like any other business. Every new vehicle on the lot costs the dealer money to keep in inventory, and that can create opportunities for informed buyers.
- Unsold vehicles are typically financed through inventory ("floorplan") loans, so carrying costs increase the longer a vehicle remains on the lot. Now multiply that by 400 or 500 vehicles.
- Some Toyota dealerships have much larger inventories than others, often creating greater pricing flexibility.
- Meeting monthly, quarterly, and year-end sales targets can make dealerships more willing to negotiate.
- Competition between nearby Toyota dealers usually leads to surprisingly different price quotes on the same model.
In other words, while Toyota vehicles remain desirable, dealerships still need customers ... and some moreso than others.
Because every dealership's inventory, sales goals, and carrying costs are different, the only reliable way to discover who is most motivated is to request price quotes from several Toyota dealerships (more on this soon). The lowest initial quote often comes from the dealer with the strongest reason to earn your business.
Buyer Tip: Don't assume every Toyota dealership is equally motivated to sell. A dealer with aging inventory or a strong incentive to meet its sales goals may be willing to offer a significantly better price than another dealer selling the exact same vehicle.
The Key Is To Find The Most Motivated Dealer
Negotiating room varies by model, trim level, and your local market. And generally speaking, buyers are now finding the greatest price flexibility on:
- Outgoing model-year vehicles
- Higher-volume gasoline models
- Vehicles with larger dealer inventory
- Models receiving manufacturer financing incentives
- Vehicles that have remained on a dealer's lot longer than average
By comparison, recently redesigned vehicles, specialty models, and many hybrid versions typically remain much firmer on price.
How to Get the Best Price on a New Toyota
So, the next question becomes, How do you actually get the lowest possible price?
Many buyers immediately think about negotiating harder with one dealership. In reality, that's usually the least effective approach.
The easiest way to lower the price of a new Toyota isn't becoming a better negotiator.
It's putting several Toyota dealers in a competition for your business.
For more than 15 years, I've recommended this strategy because it consistently produces better results than negotiating with a single dealership. I've also used it personally when purchasing vehicles for my own family because it changes the entire negotiating process.
Instead of trying to convince one dealer-salesperson to lower the price, you simply compare offers from several dealers who know they're competing to earn your business.
That competition is where the real savings begin.
Stop Just Shopping For A Car ... Shop For A Dealer
By getting the dealerships in a competition for your sale, you'll pinpoint the one (or even more), for whatver reason, that's ready to give you the best price.
And here's the easy way of doing that ...
How to Get Toyota Dealers to Compete for Your Business
Again, and this is extremely important, one of the biggest mistakes new Toyota buyers make is negotiating with only one dealership.
Even experienced negotiators rarely know whether they're receiving the dealer's best price because they have nothing meaningful to compare it against.
The smarter approach is simple: request online price quotes from several Toyota dealers in your general area before ever stepping into a showroom.
Once dealerships know they're competing for your business, the entire negotiating dynamic changes. Instead of negotiating against one dealer, you're comparing offers from several dealers who are all trying to earn your business.
The Process Is Surprisingly Simple
- Request free price quotes from several Toyota dealers.
- Compare the offers you receive.
- Use the strongest offer to negotiate with competing dealerships, if you choose.
- Purchase from the dealer offering the best overall value.
You can complete much of this process from home with little pressure, giving you time to compare prices, financing, trade-in values, and dealer fees before ever setting foot in a dealership.
I'll explain exactly how and where to do this in a minute. But a few things first.
Five Reasons This Strategy Works
1. Dealers Compete for Your Business
When dealerships know they're competing against other Toyota dealers, they're often more willing to present their strongest offer early in the process rather than risk losing the sale.
2. You Gain Negotiating Leverage
A written quote from one dealer is your strongest negotiating tool with another dealership.
3. You Learn the True Market Price
Multiple quotes quickly reveal what other buyers are actually paying in your area. That knowledge gives you confidence and prevents overpaying.
4. You Avoid High-Pressure Sales Tactics
Because you're comparing offers from home, you can evaluate each proposal carefully without feeling rushed into making an immediate decision.
5. You Often Discover Better Overall Deals
One dealer may offer a lower selling price, another may provide better financing, while a third may offer a stronger trade-in value. Comparing several offers helps identify the best overall transaction, not just the lowest advertised price.
Where Should You Get Your Price Quotes?
Over the years I've used several quote services, but my personal favorite continues to be the one offered through Edmunds. I've consistently had good experiences with both their dealer participation and their straightforward process.
That said, the specific website isn't nearly as important as creating the competition.
Whether you use Edmunds, Kelley Blue Book, CarGurus, AutoTrader, or another reputable service, the goal is exactly the same:
Create competition before you negotiate.
If you do go there, just enter your make and model, then select the year, and then "Check Availability". And I normally include dealers within 100 miles to be sure of a brisk competition, but you may have to go further if you are in a more rural area.
The larger the group of participating dealers, the greater the chance that one of them is especially motivated to earn your business.
Best of all, requesting quotes is free, usually takes only a few minutes, and places you under absolutely no obligation to purchase.
What Should You Do After Receiving the Quotes?
Once you receive several competitive offers, you have options.
- Accept the best offer immediately if it meets your expectations.
- Ask another dealer if they can beat your strongest quote.
- Compare financing offers separately from vehicle pricing.
- Evaluate dealer fees and accessories before making a final decision.
- Negotiate your trade-in separately.
Remember, the goal isn't necessarily finding the lowest advertised selling price, which often disguise some strings attached. It's obtaining the best complete transaction.
Bottom Line
The easiest way to save money on a new Toyota isn't becoming a better negotiator.
It's locating the dealer most ready to deal.
Requesting the quotes requires only a few minutes, costs nothing, and can save hundreds, or even thousands, of dollars while giving you complete control over the buying process.
If you'd like to request free competing Toyota price quotes, again my preferred service is available through Edmunds. Or use any reputable quote service you may prefer ... the important thing is to let several dealers compete for your business before you buy.
When? One More Advantage: Finalize at "The End"
If your timing is flexible, there's one additional strategy that can also improve results.
I simply call it "The End."
That means shopping near:
- The end of the month
- The end of the week
- The end of the business day
- The end of the model year
Dealerships often work toward sales goals tied to monthly, quarterly, or annual performance. If a dealer is close to reaching one of those goals, they may be willing to accept a little less profit to complete one more sale.
This strategy doesn't always produce additional savings, but when combined with multiple competing price quotes, it can sometimes give buyers one final opportunity to improve an already strong deal.
And I'll add one more especially important one: The end of the day. Whenever you are ready to accept an offer and finalize the transaction, do it close to closing time. If they close at 9pm, walk in at 8.
This Avoids Any Last Minute "Funny Business"
"End of the day" closings give you "end of the day" leverage.
A late closing creates a situation where there's no way they are going to let you leave without closing the deal. They really want that final sale for the day. They're also worried you may never come back.
So, if suddenly they're bickering over a trade-in value, or your loan interest rate, or dubious add-ons, etc., all you have to do is balk and let them know the deal is no longer what you were expecting and therefore it's time to go home to re-evaluate your other offers.
There's no way they are going to blow the deal they have stayed there after closing to close. Suddenly, they'll realize they can give you a fair trade-in value, or a better loan rate, or whatever else was the issue.
(By the way, if you go to Edmunds, you can also get your trade-in value at the same time.)
Frequently Asked Questions
Can you negotiate the price of a new Toyota?
Yes. While popular Toyota models may have less negotiating room than some competing brands, many buyers still save money by comparing multiple dealer quotes, shopping at the right time, and taking advantage of available financing incentives.
What is the best time to buy a new Toyota?
The end of the month, quarter, or model year often provides the best opportunities because some dealerships are working toward sales goals and may be more willing to negotiate. And "the end of the day" is the best time for closings.
How much can you negotiate on a new Toyota?
It varies by model, inventory, and local market conditions. Rather than focusing on a specific dollar amount, buyers usually achieve the best results by obtaining competing price quotes from several dealerships.
But by strategically using a free online car-quote service, you simply put the odds much more in your favor for getting the best possible result.
More Information
If you like, there are more details on this technique here along with how to interact with the dealers once you get the quotes.