TDA question

[Teikas Dad]

OK, I know the TDA is Toyota's dealer advertising cost....which they try to pass on to the consumer claiming that it is a cost that can't be negotiated.

I'm not an accountant or tax expert, but if it is a cost related to conducting their business, just like every other business that has advertising costs, can't they deduct those advertising costs as a business expense on their corporate income tax? If so, that means that they are charging the consumer for the cost then claiming the deduction later on.

What say you business owners/tax experts out there? If the cost is deductible then it should be negotiable when purchasing the vehicle.

[layonnn]

Teikas Dad previously said:

OK, I know the TDA is Toyota's dealer advertising cost....which they try to pass on to the consumer claiming that it is a cost that can't be negotiated.

I'm not an accountant or tax expert, but if it is a cost related to conducting their business, just like every other business that has advertising costs, can't they deduct those advertising costs as a business expense on their corporate income tax? If so, that means that they are charging the consumer for the cost then claiming the deduction later on.

What say you business owners/tax experts out there? If the cost is deductible then it should be negotiable when purchasing the vehicle.

This is not the first time i have heard of a dealership doing this
Make them remove it from the cost or tell them you will buy elsewhere. Have other close dealerships name already and find out if they do the same thing before hand.
If they say they won't, ask them why the salesperson's wages are not on the ticket, and their lighting/water bill, and everything else. How come just this one thing of the many expenses they pay for in operating a business (poorly) shows up on the window sticker?

[RoverGGM]

layonnn previously said:

If they say they won't, ask them why the salesperson's wages are not on the ticket, and their lighting/water bill, and everything else. How come just this one thing of the many expenses they pay for in operating a business (poorly) shows up on the window sticker?

I'm sure some of the smaller dealerships would like to ask the manufacturer the same question.

The TDA and other expenses DON'T show up on the "window sticker". Profit shows up on the window sticker. TDA shows up on the invoice.

Invoice includes TDA because it's a charge invoiced by Toyota, just like the small charge for the residual fuel left in the tank after transport to the dealership. The free tankful of gas you should have received with your new Toyota was on the dealership's dime (for the most part) too.

Profit allows the lighting/water bill, commissions and everything else to be paid.