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Toyota on the mend?

16273 messages,  Last post on Apr 25, 2013 at 8:21 AM

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What is this discussion about? Toyota, Automotive News

    

Messages Page 1628 of 1628

#16264 of 16273 Re: . [ateixeira] by berri

Apr 23, 2013 (7:27 pm)

Replying to: ateixeira (Apr 23, 2013 11:08 am)
I know some dealers make a killing off of overpriced extended warranties. But I wonder if Toyota may not be smarter - I'd think it's easier to sell an extended warranty closer to a grand than two grand? It's not just profit margin, but also turns. If a Toyota dealer sells three times more $1K warranties than another brand dealer does at $2K, the Toyota dealer probably ends up better off at the end of the year. If the Toyota dealer sells only twice as many, financially I guess it's a break even if warranty actual dealer cost is similar. But, if a customer has a problem covered under one of those warranties and the dealer treats them right, there is likely some customer satisfaction and goodwill gained also that might affect a future purchase decision. I'd think all of this adds to the Toyota quality perception?

#16265 of 16273 Re: . [berri] by robr2

Apr 24, 2013 (5:33 am)

Replying to: berri (Apr 23, 2013 7:27 pm)
But the dealer doesn't offer only the Toyota extended warranty. Most dealers prefer to sell independent warranties that garner them a much higher profit.

#16266 of 16273 Re: . [fintail] by ateixeira

Apr 24, 2013 (6:49 am)

Replying to: fintail (Apr 23, 2013 7:19 pm)
I used to work as a student for the University of Maryland, and they had fleets of vans and Ranger pickups. They'd get base models with nothing. I mean vinyl seats, no A/C, no options whatsoever. One of them had an AM only radio!
 
One of the guys on the crew swapped out the radio for an AM/FM one from a junk yard, just to make it tolerable.
 
I'm not sure how often they'd trade them in, but they always seemed only a couple of years old or newer.

#16267 of 16273 Re: . [berri] by ateixeira

Apr 24, 2013 (6:55 am)

Replying to: berri (Apr 23, 2013 7:27 pm)
Good point about goodwill...in fact a friend of ours who used to participate on these boards is the head of Subaru's warranty program, and she told me they actually lose a bit of money selling those (Subaru loses money, not dealers, obviously).
 
Under a grand for 7 years of coverage that even includes roadside assistance the whole time? AAA alone was costing us $70something per year.
 
But...make them affordable and you end up with happy customers that drive fixed up cars, that never become beaters with half the stuff broken.
 
How often do you see, say, an older Land Rover with a faulty air suspension, kneeling to one side? Makes you afraid to buy a used one, doesn't it? If Land Rover had a longer warranty you wouldn't see those, and that could help residual values, and keep customers happy and loyal.
 
Back to what you said, it is a way to "cheat" and improve the quality perception, since you pay for repairs up front. Manufacturers should subsidize them IMHO.

#16268 of 16273 Re: . [robr2] by berri

Apr 24, 2013 (8:20 am)

Replying to: robr2 (Apr 24, 2013 5:33 am)
But the dealer doesn't offer only the Toyota extended warranty. Most dealers prefer to sell independent warranties that garner them a much higher profit.
 
I think that may vary by region. Personally, I'd never touch a 3rd party warranty. I think you're just looking for trouble with one of those.

#16269 of 16273 Re: . [ateixeira] by berri

Apr 24, 2013 (8:24 am)

Replying to: ateixeira (Apr 24, 2013 6:55 am)
I know the manufacturers are restricted by state and local laws protecting dealerships, but gouging on extended warranties hurts the manufacturer really. If say a Ford dealer wants twice what a Toyota dealer does for essentially the same warranty terms, my immediate perception is that then the Ford must be an inferior product since the warranty costs so much more. That may not in fact be true, but it's often going to have that effect I think.

#16270 of 16273 Re: . [berri] by ateixeira

Apr 24, 2013 (8:36 am)

Replying to: berri (Apr 24, 2013 8:24 am)
It would make me think twice about even buying the car if the warranty cost seems unusually high vs. competitors.
 
3rd parties really sell insurance policies, not warranties.

#16271 of 16273 Re: . [ateixeira] by berri

Apr 24, 2013 (11:58 am)

Replying to: ateixeira (Apr 24, 2013 8:36 am)
3rd parties really sell insurance policies, not warranties.
 
Good point. And as such, there is financial risk (BK, etc.) and the firm has no leverage with either the dealer or the manufacturer.

#16272 of 16273 Weird but cool by ateixeira

Apr 24, 2013 (12:27 pm)

Check out this chameleon:
 
http://www.autoblog.com/2013/04/24/toyota-me-we-concept-is-a-multifunction-tuppe- rware-car-w-video/
 
The windshield can drop, speedster style.
 
Not that it would ever make production. And cars that have come close (Smart ForTwo and Saturn Ion) with interchangeable panels all have bombed.

#16273 of 16273 Still on top... by anythngbutgm

Apr 25, 2013 (8:21 am)

http://www.leftlanenews.com/toyota-starts-2013-as-no-1-automaker.html

Messages Page 1628 of 1628

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