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Toyota, sacrificing profits on tCs?

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Old 11-22-2006, 02:05 AM
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Default 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.
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Old 11-22-2006, 02:17 AM
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yes things like this has been talked of this many times.... this isn't new since scion has been out for 4 years
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Old 11-22-2006, 02:41 AM
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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.
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Old 11-22-2006, 03:32 AM
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you really think they're not makin a profit? i highly doubt it, our paint isnt as good, interior isnt as good either... and they cut money from R&D by using current engine
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Old 11-22-2006, 03:46 AM
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werd bronx, not to mention our bodies are made out of old recycled toyotas, theyre definately making a profit
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Old 11-22-2006, 04:12 AM
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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.
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Old 11-22-2006, 05:42 AM
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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.
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Old 11-22-2006, 06:07 AM
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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
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Old 11-22-2006, 07:46 AM
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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
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Old 11-22-2006, 12:33 PM
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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.
With this potentially tighter profits and sacrificing on the Scions, it makes sense that they implemented Pure Pricing. With PP, they remove that wildcard factor and can say matter of factly that a tC will make exactly this much profit. If there was no PP and people were managing to buy Scions at just above invoice, that could screw Toyota over.


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
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Old 11-22-2006, 02:49 PM
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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
they say they are selling it for less so you can mod it more. who needs 17" alloy rims when you are going to replace it is their logic. they put cheaper parts on the car so you can change them to exactly what you want
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Old 11-22-2006, 06:40 PM
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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
they say they are selling it for less so you can mod it more. who needs 17" alloy rims when you are going to replace it is their logic. they put cheaper parts on the car so you can change them to exactly what you want
you two are talking about different things. his talking about production numbers. you're talking about Scion tC spec.

it's true they are cutting down on production numbers to keep scions more unique in the market.
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Old 11-22-2006, 08:37 PM
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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.
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Old 11-23-2006, 12:10 AM
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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.
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Old 11-26-2006, 07:56 AM
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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.
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Old 11-26-2006, 06:02 PM
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This is nothing new. Scion is Toyota's youth brand. Scion will always remain affordable to the masses.

Alot of the options and accessories can easily take a tC to 20K though.
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Old 11-26-2006, 06:09 PM
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^^^ yuup! Attractive entry price...."personalize" and it's time to look elsewhere.
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Old 11-26-2006, 07:24 PM
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But... the difference is that for the base price, you basically get what you can really use.

With other cars, they have great base prices, but not even basic things like power windows, A/C, etc.
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Old 11-26-2006, 07:42 PM
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^^^ yup, basic tC has a lot, even spec tC has a lot.
But some folks add on the spoilers, LED interior, scion security, pedals, *****, TRD exhaust, etc............. wow.
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