Toyota offering $2000 for dealers to buy Tundra

Interesting article. Why wouldn't Lexus and Scion dealers already be using Tundras?


http://www.businessweek.com/ap/financialnews/D8NTIVO05.htm

Mcmflow, you beat me to it. . . I read the same article on another site. . . .

We obviously run in the same automotive "circles". . . . .:)

Yeah, probably so, i saw this on another site first also. ;)

Interesting article. Why wouldn't Lexus and Scion dealers already be using Tundras?


http://www.businessweek.com/ap/financialnews/D8NTIVO05.htm
Nothing strange about that, dealers get incentives to use corollas and camry's as loaners, sienna's as shuttles. No reason they shouldn't get one to use Tundras as parts trucks.

Fan

^^^ other than the fact that they could have been using the old Tundra for 7 years now, but weren't. . . . It's not like Toyota has not had trucks before, why were these dealerships not using their own product to deliver parts, instead of using a competitors "inferior" product?

^^^ other than the fact that they could have been using the old Tundra for 7 years now, but weren't. . . . It's not like Toyota has not had trucks before, why were these dealerships not using their own product to deliver parts, instead of using a competitors "inferior" product?

Um maybe price? Maybe they'd rather use a chevy truck they bought for $8000 (or recieved on trade) Rather than the exact same spec toyota with the same miles that they paid $16000 (or recieved on trade).

But you are just here to bash Toyota's, so you probably won't admit the vastly superior resale values of Toyota's vs Gm.

Fan

Wow, you just proved the point of the article, and didn't even know it. . . . A comparable "base" domestic truck is $2000 cheaper than the Tundra, so Toyota has to give a rebate to their own dealerships to offset this price differential. If Toyota feels the need to offer dealers this rebate to convince them to buy a new "base" Tundra (after all it's a rolling advertisement for the dealership and a BRAND NEW VEHICLE), why would they not offer the same rebate for a customer looking for a base truck . . . . (oh wait, they do!!!!)

And yes, Toyota's have better resale value than any domestic, due in large part to their non-dependence on fleet sales, better quality reputation, and overall lack of rebates/fire-sales. . . . . I know this, as does everybody else. . . . This thing you call "biased" is actually good 'ol common sense and objectivity . . .

Um maybe price? Maybe they'd rather use a chevy truck they bought for $8000 (or recieved on trade) Rather than the exact same spec toyota with the same miles that they paid $16000 (or recieved on trade).

But you are just here to bash Toyota's, so you probably won't admit the vastly superior resale values of Toyota's vs Gm.

Fan

Most dealers around here use new/newer trucks, they don't use some old beater. And if they are going to get better resale out of the Tundra anyway, why not use it? I just find it strange that even with a dealer buying the truck at their cost, it would still not make business sense for them to use thier own product?
I don't get it. The dealer can buy a new truck from somewhere else and pay less than they can buy their own products?

Wow, you just proved the point of the article, and didn't even know it. . . . A comparable "base" domestic truck is $2000 cheaper than the Tundra, so Toyota has to give a rebate to their own dealerships to offset this price differential. If Toyota feels the need to offer dealers this rebate to convince them to buy a new "base" Tundra (after all it's a rolling advertisement for the dealership and a BRAND NEW VEHICLE), why would they not offer the same rebate for a customer looking for a base truck . . . . (oh wait, they do!!!!)

And yes, Toyota's have better resale value than any domestic, due in large part to their non-dependence on fleet sales, better quality reputation, and overall lack of rebates/fire-sales. . . . . I know this, as does everybody else. . . . This thing you call "biased" is actually good 'ol common sense and objectivity . . .

As i've said (and you didn't listen) Toyota offers dealer incentives for Siennas, Corollas, and Camrys to be used in business operations. So it's nothing new, and not news that they would offer it on a truck.

You'd probably be surprised to find out GM offers incentives for dealer operation units as well. OH MY GOD. So does Ford. OH MY GODDDDDD! So does Chrysler OH...

You mean EVERY factory actually provides incentives to their dealers OH MY GOD.

You get the point.

Next time read the post before you post.

Fan

As i've said (and you didn't listen) Toyota offers dealer incentives for Siennas, Corollas, and Camrys to be used in business operations. So it's nothing new, and not news that they would offer it on a truck.

You'd probably be surprised to find out GM offers incentives for dealer operation units as well. OH MY GOD. So does Ford. OH MY GODDDDDD! So does Chrysler OH...

You mean EVERY factory actually provides incentives to their dealers OH MY GOD.

You get the point.

Next time read the post before you post.

Fan

Are we even talking about the same thing? Even a Toyota spokesperson said this is a "somewhat unique" program. I believe what you are speaking of is factory incentives that dealers can use (or not) when selling a vehicle. This incentive (in the article) is given directly to the dealer from Toyota Motor Company to lower the purchase price of a Tundra for the dealer to purchase and use as a parts delivery vehicle. If this is not new, then why would dealers have had to "go through other channels to by the pickups for their own use" before this incentive was offered?

If we are speaking of the same thing, please enlighten me as to how much money ToMoCo offers dealers for the Sienna, Corolla, and Camry. Is it $2000?

From the article:

"Toyota spokesman Bill Kwong said the program is somewhat unique for Toyota and is a way to gain exposure for the new Tundra, which went on sale in February. Dealers typically have to go through other channels to buy the pickups for their own use, and this deal will save them time and money, the spokesman said."

As i've said (and you didn't listen) Toyota offers dealer incentives for Siennas, Corollas, and Camrys to be used in business operations. So it's nothing new, and not news that they would offer it on a truck.

You'd probably be surprised to find out GM offers incentives for dealer operation units as well. OH MY GOD. So does Ford. OH MY GODDDDDD! So does Chrysler OH...

You mean EVERY factory actually provides incentives to their dealers OH MY GOD.

You get the point.

Next time read the post before you post.

Fan

That's not what the issue is. This issue in my mind is why wouldn't Toyota corp dealers, buy Toyota trucks to begin with? I don't understand that at all.

That's not what the issue is. This issue in my mind is why wouldn't Toyota corp dealers, buy Toyota trucks to begin with? I don't understand that at all.
Okay, back to the original arguement. How do you know Lexus and Scion dealers don't drive Tundras? Because Toyota put an incentive on the trucks? I don't get your logic.

Did you know in 2001 GM offered it's dealers 0% financing to upgrade the parts trucks to the current model year? That's right. It's own dealers signed Conditional Sale Contracts with GMAC.

Fan

Are we even talking about the same thing? Even a Toyota spokesperson said this is a "somewhat unique" program. I believe what you are speaking of is factory incentives that dealers can use (or not) when selling a vehicle. This incentive (in the article) is given directly to the dealer from Toyota Motor Company to lower the purchase price of a Tundra for the dealer to purchase and use as a parts delivery vehicle. If this is not new, then why would dealers have had to "go through other channels to by the pickups for their own use" before this incentive was offered?

If we are speaking of the same thing, please enlighten me as to how much money ToMoCo offers dealers for the Sienna, Corolla, and Camry. Is it $2000?

"
Your ingonrance is shinning through.

I'm talking EXACTLY about rebates to dealers when they purchase vehicles and put them into business use. For example, If a Toyota delear registers a SIENNA CE or LE to be used as a service shuttle, the delear recieves a credit from toyota for $1400.00.

When i was with GM, they offered $1800 for Montana Vans to be used as service shuttles. Sierra's as parts trucks got $1000. And as i said in another post, in 2001 GM even let its dealers purchase them on CSAs at 0%.

When I was with Ford (in the 80's mind you) They offered $500 on parts trucks

I haven't seen a parts truck incentive from Toyota before, so I guess in that sense it's "somewhat unique" but definately not in the industry.

something you must understand is that all Factories treat its dealers with a carrot and stick approach. They are not always in partnership. They often provide carrots for them to upgrade their facitlities and vehicles in service. Sometimes they use a stick. A friend of mine who owns a honda dealership is being forced into massive service department upgrades. If they fail to make the upgrades, their "allotment" of new vehicles from the factory will be cut back.

Among dealers, some factories have a better reputation than others. Ford is near the bottom, GM is closer to the Top.

Fan

Okay, back to the original arguement. How do you know Lexus and Scion dealers don't drive Tundras? Because Toyota put an incentive on the trucks? I don't get your logic.

Did you know in 2001 GM offered it's dealers 0% financing to upgrade the parts trucks to the current model year? That's right. It's own dealers signed Conditional Sale Contracts with GMAC.

Fan

I wasn't trying to argue, i was trying to understand why they would need to do this. It makes sense if they are just trying to get them to upgrade to the new Tundra. I thought that I had read in the article that Lexus and Scion dealers were using other trucks, but after I re read it it wasn't saying that. However in one of your replys you said they probably used a used chevy because of price, that just cemented my mis understanding about them using other trucks....so calm down no need to get all upset about it, i was just trying to make more sense out of it. :D

I wasn't trying to argue, i was trying to understand why they would need to do this. It makes sense if they are just trying to get them to upgrade to the new Tundra. I thought that I had read in the article that Lexus and Scion dealers were using other trucks, but after I re read it it wasn't saying that. However in one of your replys you said they probably used a used chevy because of price, that just cemented my mis understanding about them using other trucks....so calm down no need to get all upset about it, i was just trying to make more sense out of it. :D
np, i'm just getting too used to engineers bashing/trolling. Didn't mean to paint you with the same brush!

Fan

^^^I think your being a little too sensitive, fanfan. I have no idea how the dealership vehicle purchasing works, but I do find it interesting that Toyota finds it necessary to institute a "somewhat unique" program on a truck that just came out. And by your numbers, the NEW Tundra offers more cash on the hood for dealers than any other vehicle. That is the point of the article, and the point I have been trying to make. . . .that and the fact that Lexus and Scion dealerships need an incentive to purchase their own product.

As you said (and I will assume it is true), most auto companies do this, so fine, maybe it's not a big deal. . . . . but I find it to be more than a coincident that the base Tundra is ~$2000 more than the base domestic, and that is the amount ToMoCo has put on the hood to "convince" it's dealers to buy their own truck. . . .

Anyhow, your right about my ignorance on this subject, I honestly have no idea how it works. . . .but I do have a fair bit of common sense and deductive reasoning, and this "somewhat unique" program seems to be an bad indication for the base Tundra this soon after it's launch. . . .

.that and the fact that Lexus and Scion dealerships need an incentive to purchase their own product.
You are still not listening. ALL Factories offer dealerships incentives to buy thier own products.

You can try to deduce anything you want from the amounts offered, to support your bashing.

Fan

So your saying this is perfectly normal, and we should not be alarmed? Got it. . . . carry on fanfan. . . .

<meanwhile, the rest of autodom will see this as Toyota's admission of the New Tundra (in base form) being overpriced.>

BTW, what is the factory incentive (for dealerships to purchase) on the New Silverado, New Sierra, F150, Titan, or Ram? Thanks. . .

I like it......... :thumbup:
Great idea.

np, i'm just getting too used to engineers bashing/trolling. Didn't mean to paint you with the same brush!

Fan

Well I am a fan of both GM and Toyota, so you will probably see me on both sides of the fence from time to time. :D

http://www.caranddriver.com/dailyautoinsider/12694/2007-toyota-tundra-makes-a-strong-debut-in-the-large-pickup-segment-power-information-network-reports.html

Just found this article on Tundra sales. Looks like they are selling just fine. Hope they can keep the momentum going.

http://www.caranddriver.com/dailyautoinsider/12694/2007-toyota-tundra-makes-a-strong-debut-in-the-large-pickup-segment-power-information-network-reports.html

Just found this article on Tundra sales. Looks like they are selling just fine. Hope they can keep the momentum going.

Lets see how Engineer tries to spin this as neagitive for toyota.

Fan

http://www.caranddriver.com/dailyautoinsider/12694/2007-toyota-tundra-makes-a-strong-debut-in-the-large-pickup-segment-power-information-network-reports.html

Just found this article on Tundra sales. Looks like they are selling just fine. Hope they can keep the momentum going.

So the article basically repeated what myself and most others have said all along, truck loyalty is fierce. The Toyota faithful represent the majority (53%) of the Tundra sales (trading an old Tundra for a new Tundra), while the Domestic faithful continue to buy their preferred truck (F150, Ram, Silverado, Sierra). Not as many (old) Tundra's are being traded for domestic trucks, and that should not be a surprise (read brand loyalty).

I still contend that the majority of sales for the new Tundra will come from Ram and Titan owners (seem to be the least loyal as both the F150 and Silverado had "loyalty" increases of 4% from Jan to Feb). I do wish the "domestic trucks" conglomerate would have been broken up by individual models to give a clearer picture.

As far as higher "average retail transaction", that’s easy.

1) The domestics own the fleet truck market, and those trucks are very inexpensive, so that alone brings down the "average transaction price" for domestic trucks.

2) Two of the four domestic trucks (or two of the three if you combined both GM trucks) have been on the market for over 4 years with little to no changes, so the Ram and F150 have cash on the hood to move the metal (hell, the Ram has a free Hemi upgrade and $5000 cash back, how’s that for a hit on "average transaction price"!!!). The F150's "average transaction price" is held higher due to it's higher end models such as the King Ranch edition ($45,000+ truck) and Harley Davidson Edition.

3) The Tundra is priced higher than a comparable domestic truck (don't just think new Silverado, but Ram and F150 too).

Combine these, plus the fact that the Tundra is an all new, highly anticipated new vehicle from Toyota, and you have a recipe for higher transaction prices. It will be curious to see these stats after the Tundra has been on the market for a year and all of the "gotta have it", Toyota faithful buyers have their new Tundra. This will be the true test of the new Tundra's "staying power".


With all the being said, I have repeatedly predicted that the Tundra will hit it's 200k mark this year. I test drove one and thought it was a great truck, with a quirky look and a cheap interior. . . . .but as far as capabilities, it is stout!!!!

My thought would be that they could be offering the program to encourage dealers to replace thier existing, old body style Tundra, sooner rather than later just to get the new ones on the road sooner.

We dont have Scion here so I cant say there, and I cant immagine Lexus running parts around in an LX470. If those dealers were using other brands I would think that they would have just been late model trade ins.

We occasionally use pickups that were traded in if we need to go get somthing big, normally we just use our Matrix. I immagine alot of dealers (especially Scion) would be in the same kind of situation, use an Xb most of the time and a traded truck for the odd occasion that you need to get somthing bigger.