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I was in the Toyota dealership yesterday after seeing sales figures for 2018 and talking to the salesman I think Toyota is doing the right thing.In 2018 there were something like 896,000 F-150 produced Dodge and Chevy were in the 600,000+ range and Tacoma's there were 296,000 produced (a 24% increase over 2017)So yes Toyota doesn't produce the sheer amount of vehicles but they sell all they produce at or close to MSRP. On very rare occasion they offer a $1,000 discount on the Tacoma whereas Ford Chevy and Dodge ALWAY are offering $5,000 to $10,000+ off MSRP and have a tremendous amount of leftovers compared to Toyota. These leftovers are further discounted to get them to sell. I think Toyota follows the pigs get fat hogs get slaughtered theory. Sure they could produce 900,000 Tacomas and not sell a bunch of them then deeply discount the remaining stock to clear it out. Or they can manufacturer what will sell at or very close to MSRP and be happy turning profit. So maybe their ultimate goal isn't to have the #1 truck sales spot. Maybe it's to make a profit??
And if the truck is built in Mexico it ain't 'Murican, either.Works both ways.
So, that is good news for investors in Toyota, but not consumers who are overpaying for their truck.
Like the $55,000 Ram 1500 that is discounted $18,000 making the buyer feel likes he’s getting a $55,000 truck for $38,000. Then when he trades it in 5 years he get $18,000 for a trade. Then hes pissed because his $55,000 truck is worth 1/3 of the MSRP.Then you have the $39,500 Tacoma that is discounted maybe a $1000 and if you sell it 5 year later it’s still worth we’ll I’ve $20,000. How overpaid?
Not the case with the Toyotas... At all, particularly in resale value. KBB puts the Private Party price for my truck at $40K, and dealer trade at $37K. I paid $43, sticker was $45K so in 2 years a 5k retail / 3K sales price for private party, and 8K/6K loss trade value . The GMC Sierra I considered was $58K retail, could have bought for $45K. KBB puts that truck at $34K private sale, $30K trade value.. The HD Chevy was over $65K, could have bought for $52K. KBB puts it at $46K private Party, and $42K trade in value. Dodge was even worse....I'll leave it to you to do the math and decide who is overpaying. Had I bought the big 3, If I had to sell or trade, I'd take a huge hit in depreciation in sales price (11K-15K), and retail depreciation is even worse (24K-28K)... Not so with the Tundra and similar on Tacomas.Not a fan boy, just happy with the facts....
Why are you comparing a Tacoma to a Ram 1500? Totally different class of truck?
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