With all the recalls and stop sales Toyota volume is down for sure this month. I was getting back to precovid levels of sales before this month and demand seems to have dropped off a cliff. Iām sure the start of summer isnāt helping that either as June is typically a bit slower. I expect Toyota to start offering some more incentives to push cars soon, but at the same time theyāre cutting production so inventory still isnāt great at all.
Covid showed them they donāt need full lots to make record profits so that sucks for buyers as dealers are less inclined to discount when they donāt have much to offer on the lot.
Many of my dealers are affected by this hack but they seem to be doing ok getting my deals completed.
On the service side I dropped my Jeep off at a dealer yesterday and while the service advisor showed frustration they clearly had found a way already to stay functional. The service write ups looked just like the ones youād normally see and it was a slightly longer process.
like most brands, toyota allocation is formulaic and is based on what a dealer sells. your dealer predominately sells pickup trucks, for which there is absolutely no demand right now, as the pickup truck market is oversaturated with supply. the rest of the stuff toyota makes hasnāt had a good leasing program in 3+ years. my toyota store has 30+ rav4 primes on the ground. iām pricing them in the mid 300s w taxes and fees upfront. i canāt say iām knocking the cover off the ball. but other brands are selling extremely well. diversification wins in this business. putting all of your eggs in one basket doesnt.
My basket is more then full doing just Toyota and I have about 10 stores I work with. I prefer to know one brand very well and beat 90% of dealer pricing doing so then doing multiple brands and competing with everyone else that does it. I couldnāt possibly know every brand as well as I know Toyota, they still sell the most vehicles, just going through a rough patch as theyāre updating almost every model.
Allocations are cut across the board. No one has much instock unless itās a dealer that doesnāt really discount. My discounts are being cut as a result but Iām still well under invoice on most stuff. The prime isnāt a barometer for Toyota. Ravs are and their inventory is low as well.
Production is being cut in Japan as well, theyāre still having part supply issues. Itās a mess right now but Iām sure they will get through it.
because they prioritized buliding the much higher margin tundras, which are now lot anchors. every brand has this. toyota and lexus decided to focus on higher margin cars, and neglected the stuff that people actually want.
there are no part supply issues at any brand at this point. any dealer who tells you this is lying. there is a massive inventory glut, pretty much across all brands.
This. My store hit its number yesterday. I am honoring an quoted prices but I am shutting it down for the month
Japan is having supply issuesā¦4Runners are def being cut lately as well as ravs with vin starting with J
Tundras are such a small part of Toyotas sales. I doubt thatās the issue, price certainly is and the recall and uncertainty with the 2024s now.
They canāt build enough siennas either. Iām sure they would love to sell more, itās not purely price fixing but thatās def a part of it to keep pricing high. Thereās a point where that doesnāt make sense though when thereās so much demand.
Man youāre going to get so annoyed at the bargain hunters coming out for the 4th of July hoping youād back date sales into Q2 to get the quarter end discounts.
To be honest, the customers I started to deal with are the āhey I know its 6am but can you get me a new car by noon? needs to be a white xc90ā
That is way more lucrative than:
āI see you are at 861 per month, I found a deal for 859.87/mo can you match it/beat it and hold the car for 3 weeks so I can shop your new deal?ā
I want to know who wakes up and impulse buys a Volvo.
More like,
My wife told me 3 weeks ago to lease a new volvo
she then told me 2 weeks ago
she told me last week
OMG SHEāS FREAKING OUT OUR LEASE ENDS TOMORROW PLEASE GET ME ONE ASAP
@HersheySweet calling the VP of the Volvo lovers club
Nice, those customers should make you less likely to chug bleach on the Uber home.
Beetlejuice will show up even if you say it once.
Any reports yet of a āmanual processing feeā being tacked on to deals? This is how F&I guys make lemonade out of lemons.
cybersecurity admin fee
My local credit union seems to have been recently hacked too 
Anyone in the industry know what the status is on this? I have a deal pending with an out of state dealer contingent on when things get back to normal.
Mostly back, some dealers are still getting their ability to do leases back.