Certified pre-owned vehicles now Toyota entry-point
WITH the ascension of the new fourth-generation Yaris to the $20,000+ price bracket, Toyota Motor Company Australia (TMCA) has officially left the sub-$20,000 market with no intentions of looking back, at least in terms of new vehicles.
To fill this void in the market it had previously dominated, TMCA sales and marketing vice-president Sean Hanley yesterday announced that the Toyota Certified Pre-Owned Vehicles program will be elevated to become the new entry point to the brand.
Describing the program as already being a quiet performer, Mr Hanley said the program had this month notched up its 100,000th sale since its launch in 2012 with almost a third of the vehicles priced from under $20,000.
“What we know, is that at least one out of every seven people who buy a Toyota Certified Pre-Owned Vehicle come back and they buy a new car within five years,” he said.
“So this is not only an important entry point to our brand, it’s often the first step in becoming a Toyota customer for life.”
According to Mr Hanley, three quarters of the vehicles for sale through the program are less than five years old and 41 per cent are less than three years old.
“Over time, that means that more and more people will be buying a Toyota Certified Pre-Owned Vehicle that is still covered by the original factory warranty,” he said.
“We anticipate certified pre-owned sales to continue growing beyond 25,000 a year as these cars offer the choice and quality expected of a Toyota.”
Of Toyota Australia’s current line-up, the Corolla represents up to 48 per cent of the pre-owned vehicle sales, ahead of the Camry with 20 per cent and the Yaris with 15 per cent while the HiLux and RAV4 – both being previous months’ best-selling vehicles – each occupy five per cent.
To be selected under the program, the pre-owned vehicles must be under 10 years old, have less than 160,000km on the odometer and have a full-service history before being subjected to a 90-point inspection and CarHistory check.
In order to bridge the gap between the new Yaris – which now has a starting price of $22,130 plus on-roads – and the certified pre-owned program, Mr Hanley also announced a free defensive driving course for anyone under 25 years old who buys a new Yaris or certified pre-owned vehicle between now and the end of November.
“Sadly, we know the under 25s are over-represented in road accidents,” he said.
“We think this move will be appreciated not only by the young people themselves, but also by their parents and we hope it will help build a bond between these customers and Toyota.”
The Yaris’ ascension out of the sub-$20,000 price bracket meanwhile – in terms of new cars – paves the way for MG to capitalise on the already rapid growth of its MG3 and gives brands including Suzuki (Baleno) and Kia (Rio) a chance to increase their segment share.
Toyota has sold 97,729 vehicles across all segments so far this year ending July, down some 6.7 per cent on the 104,773 sales it managed during the same period last year.
