Toyota has been one of the most established and reliable brands of vehicles around the world. Since their establishment in 1937, they have produced millions of multiple types of vehicles that are regarded by both the rich, middle-class and the average people as the best.
However, the question on the minds of the people is, can you buy a Toyota directly from the factory if you want one?
In this article, we are going to see if it is possible to order your Toyota directly from the factory or not.
- 1 Can You Buy a Toyota Directly From the Manufacturer?
- 2 Why it is illegal? (State Franchise Laws)
- 3 Is it cheaper to Toyota direct from the manufacturer?
- 4 Advantages of Buying Directly from Manufacturer
- 5 Disadvantages of Buying Directly from Manufacturer
- 6 Factors to Consider Before Going for Direct Buy or Through Dealerships
- 7 Conclusion
Can You Buy a Toyota Directly From the Manufacturer?
No, you cannot buy Toyota cars directly from the manufacturer (for now).
You can only buy through your Toyota authorized dealers, especially in the United States of America.
However, Toyota CEO recently revealed that plans are in plan to allow consumers to buy directly from the manufacturer without having to go through the dealership (more on this later, as well as the advantages, disadvantages and factors to consider when this becomes possible).
Why it is illegal? (State Franchise Laws)
Most states in the united states including Texas, made buying Toyota directly from the factory illegal through the famous state franchise laws.
The State Franchise law to protect the dealers who spent lots of effort and resources in establishing their businesses, setting up physical stores, paying taxes and employing others to be protected from going bankrupt and losing their investments.
They also established the law to protect the buyers from exploitation by the manufacturers by making dealers negotiate for a better option for their customers.
Moreover, these state franchise laws also aimed at enhancing a competitive market that will benefit the customer by creating competition among dealers, which ends up lowering the prices for the customer.
UPDATE: Toyota’s CEO just revealed that Toyota is going to bypass all dealerships and intermediaries and sell directly to the consumers.
Is it cheaper to Toyota direct from the manufacturer?
Buying directly from the manufacturer is much cheaper compared to buying your Toyota from a dealer.
This is because the extra cost which benefits the dealer as profit has been removed entirely, including other expenses like floor plan payback and advertising fees.
If a Toyota cost you $40,000 dollars by buying through an authorized dealer, it will cost you at least $5,000 dollars less than the price of the dealer if you buy directly from the manufacturer.
However, buying from the manufacturer directly has advantages and disadvantages that you need to be aware of before taking your decision.
Advantages of Buying Directly from Manufacturer
Below are some of the advantages of buying a Toyota car directly from the manufacturer (more details after).
- You get the exact options and configurations you desire.
- You will get a better offer.
- Easy access through buying online
- Priority giving to pre-sold cars.
- Ability to get through built sheets.
- Peace of mind.
1. You get the exact options and configurations you desire
Buying your Toyota directly from the manufacturer will give you the rare opportunity of choosing the exact options you need in the car and all the configurations preferred by you without any difficulty.
What you need to do is to specify your presence so that they can customize your Toyota to shit and your individual needs.
2. You will get a better offer
By purchasing your Toyota directly from the manufacturer, you will get a chance to negotiate a better offer that will be more favorable to you in the process.
Because you will eliminate the manufacturer’s extra costs of keeping the car and employing people to look after it, you will easily get a better deal with the manufacturer than when buying from the dealer.
3. Easy access through online purchases
Although it is Tesla that first brings the innovation of buying your preferred car directly from the manufacturer through the internet, other brands like Toyota follow the same methods.
Buying directly from the manufacturer saves you the stress of checking physically different cars in different showrooms.
4. Priority given to pre-sold Toyota
The biggest benefit is when there is a shortage of chips or any important component, they will prioritize your car first before any other car that has not been ordered.
Prioritizing your Toyota will give you an added advantage in getting yours more early than that of other categories of countries.
It restricted this advantage to those who pre-order a Toyota before it reaches the dealer’s showroom.
You, as a customer, can decide to include or exclude several things in your Toyota only if you directly or engage the services of an authorized dealer.
You can access a built sheet where you are at liberty of stating all the things you want in your Toyota which are not available to a customer that buys his own through the dealer’s showroom.
5. Peace of mind
Are you the type of person who takes his peaceful nature and serene lifestyle seriously?
Dealers’ showrooms can be frustrating and energy-draining, especially if the brand you fancy is not available on that axis.
Going from one allowed dealership store to another is a very demanding task, therefore, having to eliminate the problem will be welcome.
Disadvantages of Buying Directly from Manufacturer
Below are some of the disadvantages of buying a Toyota car directly from the manufacturer.
- Waiting time.
- May not get the same incentive being offered when you place your order.
- Drop in price for the trade-in.
- Limited to domestic brands.
1. Waiting time
Among the most frustrating aspects of buying a Toyota directly from the factory is the time you will spend waiting for your car to be produced according to your specification.
It takes an average of six to twelve weeks before your Toyota will is delivered to you in the designated location.
If you don’t want to spend your precious time waiting for your Toyota, go for it.
When you order a vehicle from the factory, there is a greater possibility of delay if the factory workers embark on an labor strike over an issue affecting them such as wages, safety, and incentive among others.
This will cause you great inconvenience, especially if you need your Toyota early for use.
2. May not get the same incentive being offered when you place your order
Another disadvantage of ordering your Toyota from the factory is that you may likely lose out on some important incentive programs in offer for those that buy it from the authorized dealerships.
When you placed your order, if we introduce later a certain incentive offer, you will not benefit from it even if they have not delivered yet your Toyota.
3. Drop in price for the trade-in
When the price of the brand of Toyota you ordered from the market depreciates in the market, it does not entitle you to engage in the trade-in option.
This simply implies that you can’t sell that car to the factory or provide an additional amount to pick another one in most cases because of the personal customization method you did that may not be suitable for another customer.
4. Limited to domestic brands
Placing an order for your Toyota directly from the manufacturer is only open if your country has a Toyota manufacturing or assembling factory.
You can’t order your vehicle directly from the factory if the company that owns that brand is located in another country that is not yours.
Factors to Consider Before Going for Direct Buy or Through Dealerships
Before making up your mind on which one is more suitable for you a direct order from the manufacturer or true a recognized and authorized dealership, you need to consider the following factors.
- Negotiate extensively with the dealer on the price.
- Negotiate for delivery incentive.
- Deposit is nonrefundable
- Ads assistance.
- The dealer is going to benefit from floor plan assistance.
1. Negotiate extensively with the dealer on the price
You need to thoroughly negotiate the price and the customizations that will be done for your anticipated Toyota.
This is very important even if you are buying from the dealership stores. Negotiation is very important because it will help you save some money and help you get an offer that will make you happy instead of sad.
Go for it if you know it will not affect you financially.
2. Negotiate for delivery incentive
If you are ordering your Toyota directly through the dealership, there are certain financial incentives they will benefit from as a result of the car being shipped to you on the day it arrived or the day after.
Because they are not taking space and paying for advertisements, the dealer uses the money allocated by the manufacturers as part of his profits.
Therefore, tell the dealer that you are well aware of such incentives so that you can get an additional discount on the car.
3. The deposit is non-refundable
Any amount of money you deposited to buy that Toyota is nonrefundable. This measure is out in place to prevent people from cancelling their order after the manufacturer commences work on it or the dealer requests it.
To the manufacturer, cancelling will affect its financial situation because they may incur operational damages and to the intended buyer it is done to prevent business customers from ordering which can cause serious issues to the dealer.
The dealer is going to benefit from floor plan assistance.
You also need to understand that your Toyota dealer is going to benefit massively from the floor plan assistance paid by the manufacturers every year.
The amount of the plan differs from one brand to another. You need them to lower their expected profit since times the manufacturing companies may give some few thousand dollars to them.
4. Adverts Assistance
Manufacturers are currently offsetting the money spent by dealers for advertisement.
Marketing a product rightly can always lead to the success of the product in the market and more money to employ more and reduce more.
While it may be beneficial to try and buy a Toyota directly from the manufacturer, it’s important to understand that it isn’t always possible depending on your geographical location.
In such places where you cannot buy directly from the manufacturer, you can rely on a network of authorized dealerships to handle sales and service.
However, by working with a reputable dealership and doing your research, you can still get a great deal on a Toyota that meets your needs and budget.
Whether you’re in the market for a brand new model or a pre-owned vehicle, there are plenty of options available to help you find the perfect Toyota for your lifestyle.