Toyota getting rid of sales people and car yard stock

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guyl

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#232104 29-Mar-2018 20:21

The NBR is reporting that Toyota is going to move away from sales people, and have “advisors” who are not paid commission (but do get bonuses based on surveys). They are also not going to have forecourts full of cars to sell - instead the advisors will help people to order the car they want...
Can’t come soon enough as far as I’m concerned.

Yes, I still want to go and test drive a car to get a feel for it (WhichToyota will have), but I don’t want to be pressured into the Yellow high spec model because that’s the one they have in stock and need to get rid of.

I am not a fan of Toyota generally (they don’t have enough toys for me), but I do think this idea is brilliant and hope that the other manufacturers do the same.
I want someone to help me with questions and specifications - not up sell me to increase their commission.

As an added bonus to Toyota buyers, they will be lowering prices as there will no longer be any haggling..

Good luck Toyota NZ - I hope this pays off for you.

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#1985680 29-Mar-2018 21:00

This pretty much the way Tesla works.

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RUKI

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#1985697 29-Mar-2018 21:20

Is it happening in New Zealand? All dealers or selected? e.g. Valley Toyota and Auckland City Toyota are not the same business.

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gzt

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#1985809 30-Mar-2018 07:41

NZ yes. Sales people are now product consultants. Dealers get a fixed fee per customer. Stock will be held at regional hubs. More access to customisation in practice.

https://i.stuff.co.nz/business/102686931/Toyota-NZ-ditches-dealerships-for-stores-in-big-changes-to-sales-methods

Edit: Toyota will increase the number of demonstrator vehicles available on yards.

timmmay

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#1985811 30-Mar-2018 07:50

Didn't Honda do something similar years ago? I remember reading about there being one price, no negotiation, but not sure about the dealership model.

gzt

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#1985812 30-Mar-2018 08:04

That was price promise marketing. This is supply chain.

Dingbatt

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#1985837 30-Mar-2018 09:34

So effectively the existing Toyota franchisees will become used car sales lots with new car agencies? Most people will have a trade-in, or does what to do with their old car become the problem of the customer? If so, then it will be a boost to the likes of Turners. If this is the Tesla sales model, do they take trade-ins?
Otherwise, if there is a trade-in, then that becomes price negotiable. That is how several of the family got around Honda's 'fixed price for new' policy. They were effectively paid well over the odds for their trade-in to secure the deal.
I also wonder where that will leave the quarterly, half-yearly and annual sales to meet manufacturer's targets (and receive bonuses). If their everyday price reflects those sale prices all the time, then all power to Toyota.

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surfisup1000

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#1985841 30-Mar-2018 09:43

guyl: The NBR is reporting that Toyota is going to move away from sales people, and have “advisors” who are not paid commission (but do get bonuses based on surveys). They are also not going to have forecourts full of cars to sell - instead the advisors will help people to order the car they want...
Can’t come soon enough as far as I’m concerned.

Yes, I still want to go and test drive a car to get a feel for it (WhichToyota will have), but I don’t want to be pressured into the Yellow high spec model because that’s the one they have in stock and need to get rid of.

I am not a fan of Toyota generally (they don’t have enough toys for me), but I do think this idea is brilliant and hope that the other manufacturers do the same.
I want someone to help me with questions and specifications - not up sell me to increase their commission.

As an added bonus to Toyota buyers, they will be lowering prices as there will no longer be any haggling..

Good luck Toyota NZ - I hope this pays off for you.

This is a good thing. When I buy a car I go in knowing what I want, generally.

Good they are keeping the test drive which has put me off a car I wanted to buy (Skoda superb, DSG gearbox is terrible).

Interestingly , in the USA the car sales industry is heavily regulated. I believe it may even be illegal to sell new cars online.

gzt

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#1985866 30-Mar-2018 10:26

Dingbatt: So effectively the existing Toyota franchisees will become used car sales lots with new car agencies?

That exists anyway. New cars on one side, with the same dealers import lot next door.

No doubt Toyota will continue to require that separation.

The number of demonstrator cars will increase. In most cases I think you will find that will equally fill the new car lots with the focus on display continuing.

alasta

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#1985876 30-Mar-2018 10:46

Sounds great to me. Saves money for the consumer, without them missing out on anything.

The trade in issue concerns me though. I know that dealers typically don't pay that well for trade ins, but I honestly just can't be bothered with the hassle of getting rid of my existing car myself. I guess if the existing dealerships are going to continue to sell used vehicles then there will be options available for them to deal with trade ins.

Until now I wouldn't have considered a Toyota because of their resistance to offering CarPlay, but I see that the newly announced Corolla and RAV4 have this feature (at least in the US market) so if they can offer a good product at a good price then why not.

mattwnz

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#1985910 30-Mar-2018 13:07

Does it though? Doesn't it mean that the price is fixed, so you can't play one dealer against another to get a better deal? I saved about $4000 by getting my dealer to match the price of a field day special that was being offered by another dealer.

Last time I looked at toyota, their sales sidefailed. I was looking at an 86, but no dealer in wellingotn had one to testdrive, or even look at. Instead they were more focused in sellng them online. If they can't fulfill that basic service required for selling a car, the test drive, I won't be buying one, and instead I went to another brand.

RunningMan

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#1985916 30-Mar-2018 13:11

Rather than going by NBR / Stuff's interpretation, read the actual release from Toyota.

Toyota is transforming the new vehicle purchase and ownership experience in New Zealand with the introduction of its "Drive Happy Project".

The project pioneers a new way of doing business with private, business, fleet and lease customers and is part of the changing face of mobility world-wide.

"Our way of business needs to evolve to align with our customers' expectations," said Alistair Davis, the CEO of Toyota New Zealand.

"We want to put the pleasure back into buying a brand-new vehicle," said Mr Davis. "We are taking a more customer-centric approach to car buying and the entire ownership experience."

Mr Davis said the vehicle selling process had not changed much in the last 50 years, yet today the majority of customers were using online tools to research options prior to their purchase.

"We're not alone in having made new vehicle purchases a drawn-out affair that takes the gloss off the experience," said Mr Davis. "We've observed and listened to customer feedback and are re-shaping the purchase experience."

Toyota-commissioned research found several likes and dislikes about the current industry-wide buying experience.

The most common concern was price negotiation and never being sure if you got the best deal. While the research also found the right vehicle for the buyer's needs was more important than the best price.

Toyota will now offer the same transparent pricing in all their stores, nationwide. Prices will now be haggle-free. Toyota will also offer a wider selection of vehicles from three nationwide hubs to remove any pressure to buy from a limited selection of available vehicles at the dealership.

Customers should feel positive about buying the right vehicle. No business wants to be known for its 'hard selling' tactics, says Mr. Davis, but sadly that is the reputation that comes with a traditional car dealership.

"Our research has told us people want product specialists and not just commission focussed sales people," said Mr Davis. "We are putting considerable focus on training our people to offer hospitality and a great customer experience."

Sales people have been re-trained as Vehicle Consultants, Product Experts, or the Store Concierge to help customers select the best vehicle for their needs.

"Buyers have the power in new vehicle purchases," said Mr Davis. "They'll buy when they are ready. We have to make the process as easy, transparent and welcoming as possible."

Traditionally test drives are a 10-minute drive around the block without the opportunity for the customer to properly evaluate the vehicle prior to buying. Under the Drive Happy Project, flexible test drive options will be available to customers, to ensure customers get the best opportunity to test a range of vehicles in the conditions that suit them.

Toyota will also offer a seven-day money back option, as long as conditions are met, for customers who are not satisfied with their final purchase.

"Customers have told us that when they are at the car buying stage, the majority of them begin their searches online," says Mr. Davis. "We have redesigned our website to help customers in this initial research phase."

Most of Toyota's vehicles can now be customised online to individual requirements, as well as being able to add accessories, calculate finance options and view all warranty information.

The Drive Happy Project will also include the Toyota Care Service Advantage package with every new Toyota vehicle sold through the Authorised Toyota Network. Customers will be rewarded with an extended warranty at the end of their first three years of ownership if they are regularly servicing at a Toyota Store.

For more information Toyota are encouraging people to visit their local Toyota store.

mattwnz

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#1985917 30-Mar-2018 13:14

Such a weird name to call it. Guessing it is named that way to make it sound good and positive and 'happy', rather than giving it a technical name

In some ways it is good if it gets rid of the 'hard sell' of agents/dealers. But they still need to make a sale...

Hunter

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#1985989 30-Mar-2018 14:31

Sounds like a Honda setup to me.

The last time I went into a Honda dealership to purchase a car.
No haggling on price, for everybody, including corporate
Have tried asking my Fleet Manager to get one one for discount, no discount either

Normally for other car dealership, you can get
Carpet liners, tow bars, boot liner, first aid kits, and fire extinguisher for free.

For Honda, nope, everything comes with a price.
I was told, they can get their dealership license revoke if they give any of that away for free, as it constitute a discount
True or not, i do not know

Hopefully Toyota will do the same, I feel is more fair for normal Joe/Jane Public to purchase a vehicle.

linw

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#1986003 30-Mar-2018 15:08

Sounds good to me but the question of the trade-in, raised above, hasn't been answered it seems.

Having distribution hubs is also a good idea. But, with only three, getting the cars to the far away buyers will be interesting.

andrew027

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#1986032 30-Mar-2018 16:26

Several months back I noticed a car dealer set up in an empty shop at Queensgate mall. They often have some vehicles on display in the centre space of the mall, but this was three or four different vehicles in the shop and a couple of sales people who could show you around the vehicles and show you options online. I asked if I could test drive one right there in the mall. They seemed to think I was serious and gave me an odd look. But the point is that I guess you don't need a lot of space.

I did buy a brand new car in January though, and while the showroom was conventional, and I did test drive a few things before my final choice, it was interesting that the old vehicle I traded in ended up on a used car lot in the same neighbourhood that (outwardly) has no branding or obvious affiliation with the new car dealer. So it might be that new car dealers won't have all those tatty old trade-ins spoiling the look of their minimalist lots if they also own, or are affiliated with, a cheap used car dealer.

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