Cars are a consumable product. They only last about 10 years. Before you get bored of it and buy a new one. Or before it breaks down so often, that you must buy

Cars are a consumable product. They only last about 10 years. Before you get bored of it and buy a new one. Or before it breaks down so often, that you must buy a new car. Software, like Microsoft Office, is also consumable, in the sense that your computer burns out, or Microsoft makes its operating system end-of-life after 5 years. This forces you to buy a new license. So if Toyota makes $3,000 in profit per car. And you replace your car in 10 years, then this is $300/year. Or about $25/month in profits to Toyota. If it’s $7,000, then the monthly profits goes up to $58/month for Toyota. So it’s the equivalent to a Netflix or Cable TV subscription for Toyota. But with the entrenched benefit that being a car manufacturer is big business, and there aren’t that many players in it. What Toyota did was to make perfect, their vehicles, that they have such a loyal following. That their customers go back to them for every new car, decade after decade. And plus, they make more money from their luxury brand, Lexus, and from their trucks.