Toyota financer told me...

interesting.. thats why he tried so hard to sell me that service package and i bought it...

;-P

No. Toyota makes the majority of its money by selling the products it makes - cars and trucks.

On the other hand, many dealers make more money on finance, insurance, and aftermarket accessory sales associated with the sale of a vehicle than on the actual sale of the vehicle.

I don't know if it is that easy. Yeah they make the parts but ultimately their is a cost in making those parts. So you have to ask yourself what is the offset? Then compare that to their services... everything from oil changes to 10 years down the road, a new transmission...

It makes sense how services could be their big money maker. Especially with how long their engines last. I mean, I see dozens of mid 90's Camry's everytime I am out and about and I can only imagine that if the engine last that long then there are the small things that often have to be replaced or fixed.

Likely, IME. I paid $200 over dealer cost for my last car; the salesman admitted that they'd make their money off me in the service dep't. rather than the sale itself. (He knew that I get all my cars' servicing, incl. routine oil, etc. there.)

Cathy

By "Toyota," I mean Toyota Motor Corp. and it various subsidiaries. "Toyota" does not include Toyota dealers, who are franchise holders, and Toyota does not service customer vehicles.

You do not have to take my word for it that Toyota makes more money making and selling cars than on nproviding services.

Check out TMC's web site with their financial info:

In fiscal year 2006, using a conversion of 117 Yen to a U.S.Dollar, TMC's operating income was:

Automotive: $89,608,974,359 Financial: $5,123,666,666 All other: $5,488,769,230

Total Revenue $98,050,333,333 (I only listed the major sources of revenue above).

Total net income was $11.7 billion.

Did you buy their 7 year warranty or their other packages? I was just wondering how much they make on those when the services may be rarely needed.

Dealers can make more money servicing cars than on the sale of cars.

Toyota makes little, if any money servicing cars since Toyota does not service customer cars.

"Jeff Strickland" ..

...

Hehehe - the harder anyone tries to sell my hubby on something, the less he wants it. He can't stand high-pressure sales. He walks.

Natalie

the safety net feeling...

the parts though...

Another term for an extended warranty is insurance. I am sure they expect to make money on it, otherwise they wouldn't sell it. And dealers make money on it too.

Jeff

Of course, they make money selling parts to Toyota dealers.

Jeff

Neither can I. If I'm in a clothing store say, & a salesperson approaches me, asks if I need help & I decline, *but* she continues to shadow me - I'm out of there.

A couple of weeks ago a rep for a co. offering TDA/403(b) accts. was in the teachers' lounge. He tried his sales pitch on me when I walked in to eat my lunch. I told him I've had an acct. with another co. since '77 & have no desire to open a new one. He continued w/the the sales pitch anyway, rather aggressively. I gave more him broad hints that I simply wasn't interested. He refused to shut up. But then a couple of other teachers waked in & he refocused on them. Thank goodness. I was getting ticked... The more he talked & refuse dto back off, the less I was interested in his product.

Cathy

Absolutely not. I don't buy any of the extras they try to sell. I make that clear.

Cathy

>

Right - I didn't make that distinction; the dealership would make its money off me in their service dep't. vs. in the sale of the car, not the Toyota company.

Cathy

Then again, I suppose that's true...

Cathy

I am a pushover for some things...

Yes, Toyota makes money selling parts to Toyota dealers.

The original questions was whether Toyota made more money selling cars or providing services, and the answer is that Toyota makes more money selling cars than in any other of their businesses.

If the question is whether a dealer makes more money selling cars or providing services, then the answer is that the dealer has the potential to make more money selling service than cars.

I don't know what I would have done. I think I would politely tell him that if he doesn't leave me alone, I will go and get security. And, I would have complained to the company he was representing.

I have my retirement accounts with one company, and I have no desire to change, either. And if I did wish to change, why should I trust a company with a jerk like him representing them?

Jeff