3 ms·

More like keeping cars which are intended to be leased/rented in service longer.

by bnt 5y ago

magicalhippo 5y ago
And make Toyota more money. At least here, these leased vehicles are sold as second-hand, and often sold once or twice again after that. This works fairly well, and most vehicles live a fairly long life. However Toyota only really makes money on the first sale. By taking the cars in and refurbishing them, Toyota can make money on the second and third sale. Good thing is this might make cars be around for longer, which can have environmental benefits. However one potential downside is that older cars are usually fundamentally less safe than newer cars, so it might be detrimental to Vision Zero[1]. I doubt the refurb would drastically change safety features like crash structures, number of airbags and similar. [1]: https://en.wikipedia.org/wiki/Vision_Zero https://en.wikipedia.org/wiki/Vision_Zero
- Normal_gaussian 5y ago
  Toyota injects itself into second and third sales via helping their dealers do countrywide reselling and then offering finance products on it. I assume most manufacturers do similar. When you buy through this you get a Toyota warranty and guarantee, as well as a serviced vehicle and confidence around inspections/descriptions. The remanufacture stuff sounds a lot more like they reckon there is an ability to increase the quality of these resales - which is highly likely. BEVs want battery replace/refurbs but most second hand vehicles have a snag list that is too much of a hassle for dealers to handle, but isn’t that expensive. They are also then given upselling opportunity (towbar / reversing cam / etc.) which would add new margin (and many buyers want). Of course the main driver is that we are going to soon have large scale sticker shock - going from ICE to EV is £££, particularly for second/third owner. To lose market share and finance here in the next two decades is likely for any manufacturer, and market share is their main value prop for shareholders.

More like keeping cars which are intended to be leased/rented in service longer.

by bnt 5y ago

More like keeping cars which are intended to be leased/rented in service longer.

And make Toyota more money. At least here, these leased vehicles are sold as second-hand, and often sold once or twice again after that. This works fairly well, and most vehicles live a fairly long life. However Toyota only really makes money on the first sale. By taking the cars in and refurbishing them, Toyota can make money on the second and third sale. Good thing is this might make cars be around for longer, which can have environmental benefits. However one potential downside is that older cars are usually fundamentally less safe than newer cars, so it might be detrimental to Vision Zero[1]. I doubt the refurb would drastically change safety features like crash structures, number of airbags and similar. [1]: https://en.wikipedia.org/wiki/Vision_Zero https://en.wikipedia.org/wiki/Vision_Zero

Normal_gaussian 5y ago
Toyota injects itself into second and third sales via helping their dealers do countrywide reselling and then offering finance products on it. I assume most manufacturers do similar. When you buy through this you get a Toyota warranty and guarantee, as well as a serviced vehicle and confidence around inspections/descriptions. The remanufacture stuff sounds a lot more like they reckon there is an ability to increase the quality of these resales - which is highly likely. BEVs want battery replace/refurbs but most second hand vehicles have a snag list that is too much of a hassle for dealers to handle, but isn’t that expensive. They are also then given upselling opportunity (towbar / reversing cam / etc.) which would add new margin (and many buyers want). Of course the main driver is that we are going to soon have large scale sticker shock - going from ICE to EV is £££, particularly for second/third owner. To lose market share and finance here in the next two decades is likely for any manufacturer, and market share is their main value prop for shareholders.