Market Insight: Toyota hits highs with LandCruisers

IT’S rare to find a three-year-old wagon that is selling for more on the used-car lot than it did when new. But that’s the case as Toyota runs out its V8 200 Series LandCruiser.

 

Demand for the LandCruiser 200 Series is through the roof, propelled mainly by the market hearing it will be the last V8 model as the company moves to a V6 petrol and hybrid drivetrain for this year’s 300 Series.

 

A quick flick through carsales.com.au’s used-car listings shows a 2019 Sahara at $149,990 with 29,711km on the clock, a price $26,000 higher – or up 17 per cent – than when it was new. A 2020 Horizon, the flagship variant, is $169,990 with 8600km, up $38,103 or 22.5 per cent on its new price.

 

The enthusiast market is driving much of the interest which is evident in the private sales, but also behind the strength of the vehicles bought for commercial purposes on the preference of buyers for a V8.

 

There is also the knowledge that as the last of the V8-engined LandCruisers, the resale value will be very strong.

 

That’s even evident before the LandCruiser wagon and its cab-chassis and ute derivatives find new buyers. Prices have literally gone through the roof.

 

Any good LandCruiser 200 V8 – petrol or diesel – younger than 2016 is going for more than $100,000.

 

The reason isn’t only because of a fondness for a V8 burble – though it does have allure as can be seen by the demand for US rivals Chevrolet Silverado and Ram being far above supply, and the upswing in sales for the Y62 Nissan Patrol.

 

The pandemic closed international (and some state) border travel and made holiday-seekers locked into having relaxation in the country. That brought a surge in leisure goods, including caravans and 4WDs.

 

The inability to travel overseas for an annual holiday that consumed much of a worker’s disposable incomes piqued interest in buying a new car.

 

Then it snowballed. Vehicle manufacturers were hit by COVID lockdowns, disrupting the ability to supply, which flowed down to some temporary closures in new-vehicle retail operations. Shipping was also slowed, further aggravating delivery of new vehicles.

 

The Australian federal government’s instant asset write-off of goods for tax purposes then created demand for new machinery, again boosting sales while reducing available stocks.

 

Now a LandCruiser 200 diesel (the only engine available in Australia since the V8 petrol was terminated in 2019) VX variant has a recommended retail price of $103,396 plus on-road costs while a used 2021 example with 73km on the odometer is selling on carsales for $138,900.

 

A 2018 GXL with 36,692km is for sale at $99,984 (list price for a 2021 example is $92,696 plus costs) which is also $11,300 above its new price in 2018 – a positive resale of 11 per cent after three years of service.

 

Toyota now can’t get enough of the LandCruiser 200 to meet buyer demand. But Lexus can.

 

The Lexus LX 450d (turbo-diesel engine, the same as the 200) is available from $137,636 plus on-road costs while the petrol version, the LX570, is $146,636 or in its more lavish ‘S’ variant, $168,767.

 

This compares with the 2021 LandCruiser Sahara at $124,396 and the Horizon at $131,896 – when you can get one.

 

Lexus dealers now have some stock on the ground but are saying the phone calls are coming in from buyers.

 

Toyota sold 25,142 LandCruisers in wagon and ute/cab-chassis visions in 2020, or 12.3 per cent of the brand’s total sales for the year. This year to the end of February, it has sold 4909 units or 14 per cent of total brand sales.

 

The 200 Series replacement, with V6 petrol-hybrid and V6 turbo-diesel, are expected to go on the market later this year.