Toyota, sacrificing profits on tCs?
#1
Toyota, sacrificing profits on tCs?
When you compare the tC to other cars, it's really amazing what it brings to the table for $16k.
Here is a comparison between the Eclipse, Civic Si, VW GTI and tC
http://www.edmunds.com/new/2007/mits...4/compare.html
the tC is the cheapest car of the four by a long shot, yet it keeps pace with all of them feature by feature, just fine for the most part. Except the GTI does offer some nice stuff, but it's also priced at $22k.
So, is Toyota purposely taking a hit on Scions in hopes of getting young people hooked on Toyota? Why/how else do they manage to offer so much car for so little? The whole "generation y" seems important to car companies, and I wonder if Toyota's taking it to the extreme to try and ensure excellent marketshare in the future.
Here is a comparison between the Eclipse, Civic Si, VW GTI and tC
http://www.edmunds.com/new/2007/mits...4/compare.html
the tC is the cheapest car of the four by a long shot, yet it keeps pace with all of them feature by feature, just fine for the most part. Except the GTI does offer some nice stuff, but it's also priced at $22k.
So, is Toyota purposely taking a hit on Scions in hopes of getting young people hooked on Toyota? Why/how else do they manage to offer so much car for so little? The whole "generation y" seems important to car companies, and I wonder if Toyota's taking it to the extreme to try and ensure excellent marketshare in the future.
#3
yes, absolutely. Scion is and basically alwyas has been a brand that wasn't for profit per se, but really just to reel the "deviant" youth market back to Toyotas.
Think about it... once most of us "grow" out of our tCs/xBs/xAs, will we look at what Toyota has to offer first, or at least seriously consider it? Yes, we will.
Think about it... once most of us "grow" out of our tCs/xBs/xAs, will we look at what Toyota has to offer first, or at least seriously consider it? Yes, we will.
#6
They make a profit on them, but not as much as they could. I was talking to a Scion rep that said every tC basically costs them a Camry. They can stamp out bodies and assemble things til the cows come home but the one thing they were limited on was powerplants.
The difference is there's no Pure Pricing on the Camry, so the potential for profit is greater besides the built in profit.
The difference is there's no Pure Pricing on the Camry, so the potential for profit is greater besides the built in profit.
#7
What's cheaper; designing a new powerplant or adding power up/down for two windows?
What's cheaper; designing a new frame or adding buttons on the steering wheel?
Scion also saves a lot of money by only offering cars in one basic configuration, with only three options from the factory: Paint color, transmission choice, and side/curtain airbags. They don't need tooling and development for an I4 and a V6, just the I4.
I think Scion is going the wholesale route. Selling loads of cars with a slightly lower market is easier than selling fewer cars for much more money. There's less competition in the 16-19K range than there is in the 20-26K range.
What's cheaper; designing a new frame or adding buttons on the steering wheel?
Scion also saves a lot of money by only offering cars in one basic configuration, with only three options from the factory: Paint color, transmission choice, and side/curtain airbags. They don't need tooling and development for an I4 and a V6, just the I4.
I think Scion is going the wholesale route. Selling loads of cars with a slightly lower market is easier than selling fewer cars for much more money. There's less competition in the 16-19K range than there is in the 20-26K range.
#8
yeah thats true. they sell you a cheap car to let you modify it using their stuff if you want to b 100% in keeping your warrantee which cost a bit more.
they let you buy a cheap car
and modify it with expensive stuff
whatever works
they let you buy a cheap car
and modify it with expensive stuff
whatever works
#9
Senior Member
SoCal tC Club
SL Member
Join Date: Nov 2006
Location: California - La Palma
Posts: 1,504
I heard they are going to start selling less of the tc's to "preserve" the unique feel...
I have a feeling it will bump the price up and make the car actually worth what it should be
I have a feeling it will bump the price up and make the car actually worth what it should be
#10
Originally Posted by TheScionicMan
The difference is there's no Pure Pricing on the Camry, so the potential for profit is greater besides the built in profit.
I had an '05 xB. I sold it back to the dealer after it had about 2000 miles on it. I made a profit on the trade in (about $500), and when I traded it in the dealers were crowding around me frantically: "what color is it? manual or automatic? any mods??" This was back when Scions had just come to WV and the xB was really hot. Since it was used, there was no PP and I'm sure they sold that xB at a decent mark up. I'm also sure they sold it immediately
#11
Originally Posted by Ty_Max
I heard they are going to start selling less of the tc's to "preserve" the unique feel...
I have a feeling it will bump the price up and make the car actually worth what it should be
I have a feeling it will bump the price up and make the car actually worth what it should be
#12
Originally Posted by aelements
Originally Posted by Ty_Max
I heard they are going to start selling less of the tc's to "preserve" the unique feel...
I have a feeling it will bump the price up and make the car actually worth what it should be
I have a feeling it will bump the price up and make the car actually worth what it should be
it's true they are cutting down on production numbers to keep scions more unique in the market.
#13
I highly doubt that the new limitation on production is going to affect the price at all, due to two factors.
1. Pure Price.
2. In October, Scion as a division sold 12,344 cars. That includes the xA, xB, and tC. Estimate that Scion sells this same number of cars every month, and that's a yearly figure of 148,128 cars. Somehow, I don't think limiting production to 150,000 cars is going to change the price of the cars. This is just a marketing technique that Scion is taking advantage of. It allows owners to claim some sort of exclusivity, even if it is imagined.
1. Pure Price.
2. In October, Scion as a division sold 12,344 cars. That includes the xA, xB, and tC. Estimate that Scion sells this same number of cars every month, and that's a yearly figure of 148,128 cars. Somehow, I don't think limiting production to 150,000 cars is going to change the price of the cars. This is just a marketing technique that Scion is taking advantage of. It allows owners to claim some sort of exclusivity, even if it is imagined.
#14
of all the cars you listed, yes, they cost more but they are also faster.... except the 4 cylinder Eclipse. I wouldnt put the tC with the Si GTi group.... more on the Civic EX, 4 cylinder Eclipse, Tiburon.... besides, in terms of performance, the new Civic is almost as fast as a tC.
#15
i remember when i was talking to the salesguy. he mentioned how scion was still technically new and thus offered low prices. once scion is a totally established brand, (i.e. like a lexus or acura.. both very well known brands) im sure they will shoot the price up a bit. even at the moment, the prices of the cars are slowly (like 200ish a year) going up.
Thread
Thread Starter
Forum
Replies
Last Post
SEXB909
Regional - Pacific South
1
06-04-2015 03:50 PM
mischadoll
Maintenance & Car Care
3
03-09-2015 05:48 AM
ScionLife Editor
Scion News Forum
0
02-25-2015 04:40 PM
ScionLife Editor
Scion News Forum
1
12-06-2014 11:58 PM
ScionLife Editor
Scion News Forum
0
11-25-2014 03:00 PM