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Buyers being ripped off on Toyota Corolla run-out

The $18,990 drive-away offer has been revoked in NSW after running for four days last week.

New-car buyers in most states in Australia are being asked to pay more for a Toyota Corolla than those in NSW and Queensland – and Toyota says there is nothing it can do to stop the practice.

Toyota dealers in NSW and Queensland have been advertising the superseded Toyota Corolla hatch for $18,990 drive-away to clear old stock and make way for the new model which goes on sale today. But the advertised price for the exact same car in other states in $1000 more: $19,990 plus on-road costs.

The executive director of sales and marketing for Toyota Australia Matthew Callachor told “They’re dealer prices, you’re always going to find variation in dealer prices all around Australia. It’s a group of dealers who want to move them before the new model arrives.” 

“When you hit a run-out some dealers have a few extra units left and they want to move them on.” Callachor said it would be against Federal consumer laws to prevent price variation between states. “They’ve [the dealers] got their own trading policies and … Toyota can’t [influence prices] under ACCC rules."

When asked what Toyota customers should do about the $1000 price gap, Callachor said: “The [profit] margins are the same for every dealer, it’s up to individual [dealers] how much they discount by. To our knowledge the only two dealer groups advertising $18,990 drive-away for Corolla were NSW and Queensland,” he said.

The $18,990 drive-away offer has been revoked in NSW after running for four days last week – but is still active in Queensland. Toyota dealers in other states told that the car was likely being sold at a loss at $18,990 – but none would say that on the record. Toyota Australia’s Callachor said dealers were not making a loss selling the car at $18,990 drive-away.