Toyota financer told me...

One of the Toyota financers told me that Toyota makes a majority of their
money off of services rather than car sales. Is that true?

Yes.

Most automakers work the same way.



"Go Mavs" <GoMavz (AT) GoMavz (DOT) com> wrote

One of the Toyota financers told me that Toyota makes a majority of their
money off of services rather than car sales. Is that true?

"Jeff Strickland" <crwlr (AT) verizon (DOT) net> wrote

Yes.

Most automakers work the same way.

interesting.. thats why he tried so hard to sell me that service package and
i bought it...

;-P

"Go Mavs" <GoMavz (AT) GoMavz (DOT) com> wrote

One of the Toyota financers told me that Toyota makes a majority of their
money off of services rather than car sales. Is that true?

No. Toyota makes the majority of its money by selling the products it
makes - cars and trucks.

On the other hand, many dealers make more money on finance, insurance, and
aftermarket accessory sales associated with the sale of a vehicle than on
the actual sale of the vehicle.
--

Ray O
(correct punctuation to reply)

"Ray O" <rokigawaATtristarassociatesDOTcom> wrote

"Go Mavs" <GoMavz (AT) GoMavz (DOT) com> wrote in message
news:YN7Xh.2441$nR1.1657 (AT) trnddc06 (DOT) ..
One of the Toyota financers told me that Toyota makes a majority of their
money off of services rather than car sales. Is that true?


No. Toyota makes the majority of its money by selling the products it
makes - cars and trucks.

I don't know if it is that easy. Yeah they make the parts but ultimately
their is a cost in making those parts. So you have to ask yourself what is
the offset? Then compare that to their services... everything from oil
changes to 10 years down the road, a new transmission...

It makes sense how services could be their big money maker. Especially with
how long their engines last. I mean, I see dozens of mid 90's Camry's
everytime I am out and about and I can only imagine that if the engine last
that long then there are the small things that often have to be replaced or
fixed.

On the other hand, many dealers make more money on finance, insurance, and
aftermarket accessory sales associated with the sale of a vehicle than on
the actual sale of the vehicle.
--

Ray O
(correct punctuation to reply)

"Go Mavs" <GoMavz (AT) GoMavz (DOT) com> wrote

One of the Toyota financers told me that Toyota makes a majority of their
money off of services rather than car sales. Is that true?

Likely, IME. I paid $200 over dealer cost for my last car; the salesman
admitted that they'd make their money off me in the service dep't. rather
than the sale itself. (He knew that I get all my cars' servicing, incl.
routine oil, etc. there.)

Cathy

On Apr 23, 3:33 pm, "Jeff Strickland" <c... (AT) verizon (DOT) net> wrote:

Yes.

Most automakers work the same way.

"Go Mavs" <GoM... (AT) GoMavz (DOT) com> wrote in message

news:YN7Xh.2441$nR1.1657 (AT) trnddc06 (DOT) ..



One of the Toyota financers told me that Toyota makes a majority of their
money off of services rather than car sales. Is that true?- Hide quoted text -

- Show quoted text -

not just automakers - look at e.g. computer printer manufacturers
kd
http://www.soundclick.com/krzysztofduszkiewicz

"Go Mavs" ...

"Ray O" ...
One of the Toyota financers told me that Toyota makes a majority of
their money off of services rather than car sales. Is that true?


No. Toyota makes the majority of its money by selling the products it
makes - cars and trucks.

I don't know if it is that easy. Yeah they make the parts but ultimately
their is a cost in making those parts. So you have to ask yourself what is
the offset? Then compare that to their services... everything from oil
changes to 10 years down the road, a new transmission...

It makes sense how services could be their big money maker. Especially
with how long their engines last. I mean, I see dozens of mid 90's Camry's
everytime I am out and about and I can only imagine that if the engine
last that long then there are the small things that often have to be
replaced or fixed.


On the other hand, many dealers make more money on finance, insurance,
and aftermarket accessory sales associated with the sale of a vehicle
than on the actual sale of the vehicle.
--

Ray O
(correct punctuation to reply)



Wouldn't it be kind of subjective? I mean, in NH, our cars went through

particular types of hell, in AZ, yet another hell, and California, another
still. I could say how particular maintenance could produce quite a bit of
revenue.

Kind of makes sense, really.

Natalie

"Wickeddoll®" <wickeddoll1958diespammersdie (AT) yahoo (DOT) com> wrote

Wouldn't it be kind of subjective? I mean, in NH, our cars went through
particular types of hell, in AZ, yet another hell, and California, another
still. I could say how particular maintenance could produce quite a bit
of revenue.

Kind of makes sense, really.

Natalie

Perhaps weather and terrain play a role. Indeed, they most likely do.
Nonetheless, when a transmission is ready to go its ready to go. But also
you have to wonder how often you pay for the 7 year warranty and never use
it. They are making a ton off of billing you for something that most likely
will not go wrong.

"Go Mavs" <GoMavz (AT) GoMavz (DOT) com> wrote

"Ray O" <rokigawaATtristarassociatesDOTcom> wrote in message
news:86a23$462d0bf7$44a4a10d$28332 (AT) msgid (DOT) meganewsservers.com...

"Go Mavs" <GoMavz (AT) GoMavz (DOT) com> wrote in message
news:YN7Xh.2441$nR1.1657 (AT) trnddc06 (DOT) ..
One of the Toyota financers told me that Toyota makes a majority of
their money off of services rather than car sales. Is that true?


No. Toyota makes the majority of its money by selling the products it
makes - cars and trucks.

I don't know if it is that easy. Yeah they make the parts but ultimately
their is a cost in making those parts. So you have to ask yourself what is
the offset? Then compare that to their services... everything from oil
changes to 10 years down the road, a new transmission...

By "Toyota," I mean Toyota Motor Corp. and it various subsidiaries.
"Toyota" does not include Toyota dealers, who are franchise holders, and
Toyota does not service customer vehicles.

You do not have to take my word for it that Toyota makes more money making
and selling cars than on nproviding services.

Check out TMC's web site with their financial info:
http://www.toyota.co.jp/en/pdf/2007/..._close0702.pdf

In fiscal year 2006, using a conversion of 117 Yen to a U.S.Dollar, TMC's
operating income was:

Automotive: $89,608,974,359
Financial: $5,123,666,666
All other: $5,488,769,230

Total Revenue $98,050,333,333
(I only listed the major sources of revenue above).

Total net income was $11.7 billion.

--

Ray O
(correct punctuation to reply)