Toyota switching to Direct to Consumer sales model.

[TheBlackAdder]

Welcome to our in-depth look at Toyota's game-changing change to a Direct-to-Consumer (DTC) sales model. We go into the specifics of Toyota's strategic decision, its consequences for the automotive sector, and how it positions itself in a competitive field alongside rivals and competitors in this video.

As Toyota, one of the world's premier automakers, starts on this transformative journey, we'll examine the fundamental drivers driving this brave decision and how it's establishing a new norm in an industry long dominated by traditional dealership models. With competitors such as Tesla, Ford, General Motors, BMW, and Mercedes-Benz fighting for market share, we'll look at how Toyota intends to manage this competitive landscape.

Join us as we explore the emergence of DTC sales in the automobile industry, the benefits it provides in terms of customer experience management, and the possibility for increased profitability. Toyota CEO Koji Sato has announced his company's ambition for a digital transformation that will allow consumers to customise their automobiles, altering the car-buying experience from study to purchase and beyond.

In a revolutionary paradigm change, Toyota is switching how cars are sold.

[bucolic_frolic]

1. increased profitability

Consumers can haggle with the manufacturer over what the sales people used to get. Markups are yooge.

[MichMan]

13. Or everyone now pays sticker price

[hlthe2b]

2. How do they intend to deal with the issue of "trade-ins?"

[Mosby]

4. The vast majority of consumers trade in their old car/truck

So how will they do that?

[hlthe2b]

5. Yes. That is my question..

[Mosby]

3. So all the Toyota dealers are closing?

Not buying it.

[hlthe2b]

6. They still have to have service centers... n/t

[Mosby]

7. They could outsource repairs to licensed shops.

Probably cost them less anyway.

The only issue I see is the one you raised about trade ins.

Eta maybe the dealers will still exist for used car sales and service.

[dempls]

8. Lower Overhead???

So I should expect lower cost to consumer, right?

[patphil]

9. Customer loyality could take a big hit over this.

A lot of customers have developed a relationship with the local dealer, for both purchases and repairs. Outsourcing repairs to local shops brings into question the ability for those shops to be current and trained on new models as they come out.
Also, what does that mean for test drives?
I, for one, want to see, touch, sit in, and drive a car before I commit the huge dollars it requires to buy a new car, or even a late model used car.
It's not like you're buying a refrigerator from your local big box store.

On the other hand, it means you don't have to deal with salespeople anymore...that's a big plus. Hint: they have been know to lie to you.

[PSPS]

10. Almost all states ban direct-to-consumer new car sales. The few that do usually allow it only for EV's.

Here's a rundown:

https://www.wispolitics.com/wp-content/uploads/2021/08/State-Laws-on-Direct-Sales.pdf

[TheBlackAdder]

11. NJ bans it. Apparently, the dealership network gave large bribes to politicians to make it that way.

This was discussed a lot on local radio. I'd say contributions, but it was really bribes.

Tesla still needs dealers in NJ.

[mitch96]

12. It's gonna be interesting to see how the automobile dealers association will deal with this...

They are not going to just roll over and see their cash cow die.
.I'm all for buying direct from the manufacturer. I wonder if the big auto manufacturers are seeing how auto dealers are ruining the sales process..
Hummmm this should be interesting..
m

[Mopar151]

14. Dealers will still exist.

Somebody has to do warranty work, maintainence, service, and prep for delivery. Somebody will be glad to place an order for you.