quote:
Originally posted by 6guns:
^^^ Thanks for the link, grumpy. If nothing else, the scarcity of the model overall is a testament to its quality...which everyone pretty much knows.
Theres a lot more to it than just quality of the product, which I'm not debating, Toyota makes a quality product, but that's not the only reason, nor main reason why they are scarce.
Link SmartPath is Toyotas factory to consumer connection, you can locate, apply for financing and do just about anything to buy your next Toyota, lots of dealers have joined SmartPath, but not all, so even though you can look there not all dealers participate as it's voluntary for now.
Link Cox Automotive Toyota AnalysisToyota has curtailed production so that dealers are operating with just 24-30 day of inventory vs national 60 day average. Part of your finding these vehicles hard to locate is they are not making dealers hold as many and have gone to a shorter number of allowed days on lots.
That means it looks like they are scarce due to demand, and it is in a way, but it's more because Toyota isn't putting more cars on lots, so dealers are stocking just a bit less than enough vehicles to meet demand. This results in higher prices to the consumer and less choice in vehicles, a main reason that finding the one you want is harder to do.
Now this isn't saying Toyota's quality isn't good, far from it.
It's that the company has changed the way vehicles are provided to the network of dealers, worldwide, since covid. Toyota and their dealers learned during COVID that low inventory kept prices high, and we know that when demand is not easily fulfilled it will cost more to the consumer.
Toyota know that this method keeps vehicles from needing factory rebates and buy downs, which dealers and Toyota both like, you want a Camry, you pay the price, and you feel lucky to get one... its so popular, everyone wants one, the quality is the reason, etc. sales Psychology 101, but business acumen learned during COVID.
My nephew runs a Toyota dealer in WVA, they don't mark them up, but you have to put a deposit down, and order it because they sell every one allocated at full price. They also didn't and still don't jack up trade values to make up for the massive markup like other dealers did in COVID. The advice to shop around pays dividends.
So don't fall for the "they don't have many for sale it's quality must be why line, that's not the entire reason for finding low inventory at Toyota stores. The other piece of the puzzle is holding costs known as floorplan, this is a big expense, how do you reduce paying the bank money as a dealer for your cars, hold less inventory.
This of course is made easier when your manufacturer isn't pushing inventory out the plant to keep up production numbers for the investment people who bank the stock on units made vs margin earned per unit.
Other dealers will sell anything at any price being loaded with inventory, even at a loss, made up with back door incentives at the end of the quarter. Carry costs are a big number that dealerships can control, having a ton of selection means more expense, Toyota has embraced this as a way to shore up dealer profits.
That's not a knock on Toyota per se but more a look into how the smart they are at adapting production to sales numbers and improving the bottom line of their dealer/factory relationships and production numbers are influencing your cost for a vehicle. That's why Lexus and Toyota dealerships sell for way more than others, bigger profit margins.
I used to be married to specific brands, no longer, it's about the deal, and if you can find a competitive brand at a better cost, go there, don't let all the brand hype about quality and lineage force you into a bad financial decision, Toyotas are very good, but Hondas are as well as other options.
Cars are not investments unless you're buying a 1960's Ferrari GTO 250 or Daytona to put in your portfolio....