Toyota CEO “We’re Selling Direct To Consumer”

Toyota is one of the most successful and respected car makers in the world, but Tesla is taking over, and The Japanese car giant needs to change.

That’s why Toyota is exploring the possibility of selling its cars direct to consumers, following in the footsteps of Elon Musk and other forward-thinking automakers.

In this video, we’ll explain what direct-to-consumer sales mean, how they can benefit both customers and manufacturers and what challenges Toyota might face in adopting this sales model.

We’ll also look at some of the examples of direct-to-consumer sales in the automotive industry, such as Tesla’s online ordering system, Daimler’s agency model in Europe, Volkswagen’s IDX platform, and Volvo’s online-only sales goal.

[mahmoudshojai]

People don't necessarily want e-commerce ease. They just don't want to deal with con artists ( dealers).

[pacickferdy]

100% support for Toyota plans for direct sales to customers, dealers mark up prices too much!

[BakoSooner]

Love this idea. I hate car dealerships. I hate dealing with a high school flunky asking how much I can afford in monthly payments. I hate car salesperson saying 'let me go talk to the manager'. I hate having finance guy with rolex watch pushing bloated extended warranty, clear coating, floor mats... I hate car stealerships.

[mikeing]

Dealers greed is finally coming full circle. Hopefully all car manufacturers go this route

[blockchainballers]

I will love to buy a Toyota if they take dealers out the equation! This will be a great move.

[scooterpilot]

This should surprise no Customers but on the other hand; Dealers did this to themselves. During Covid prices were mark ups @ 10 to 20K over MSRP. Had this not happened I don't think manufactures would want direct sales.

[sleepii]

Yep dealers did this too themselves!! I’m all for this! I hope Toyota follows through!

[tdinut]

I’m not buying a new Corolla with a $5k dealer markup. That’s BS

[bonniefells]

I believe that it is timely for Toyota to change their business model to Direct to Consumer. Toyota can pull this off and I am here for it. When do we start?

[donguin]

Hi, just the other day I lasted only 10 minutes with a sales person just asking questions about the 2024 Taco and a trade in before catching myself losing patience. I honestly considered or entertained another avenue or even another brand to be able to cut out the middle man. If you can hear me “Toyota” and you put this sales model in play you will win the hearts and loyalty of many Americans. It will be like a Toyota brand rebirth. We want “DIRECT SALES, ” we want direct sales… 😊

[fredrmitchell]

Definitely would put Toyota at the top of my new car considerations if they act on this.

[Kalohe]

Personally, I think it's a great idea. Order a car with the options you like, not the ticky-tacky ones dealerships add to increase their profit margins. No bait and switch, no market adjustments, and remove the F&I guy/gal. Direct, straightforward pricing sounds like a win-win.

[kensmart]

Dealers add little value to the selling process. Laws will need to be changed to allow legacy automakers to sell direct to consumer.

[JK-xlun]

Now's the time to make this change. I was in a local Toyota dealership recently awaiting a repair on my Scion. I was there almost 5 hours and I noticed there was another customer trying to close a deal on a new vehicle ---he was there the same amount of time. You could tell he wasn't pleased with the final cost and was going back and forth with the salesman. It took another two managers from the back offices having a sit down with him and finally they closed the deal. But you got to think even if he got the cost he wanted the dealership-customer relationship was off to a rocky start. How do you build customer loyalty when you start out verbally, mentally and emotionally arm wrestling with your customer? I had a godfather who was a friend of my Dad, The godfather was a car salesman. My brothers and I were always told to never buy a car from that guy. He was great at family events and when you needed help but when he was on that dealership sales floor, ---a different person. Good Luck all!

[KellySGoins]

I’m in the market for my third Toyota and I would LOVE to be able to buy directly from Toyota so I don’t have to deal with a dealership. As a woman of a certain age, I’m treated like I don’t have a clue about what I’m doing or buying. I know exactly what I want and what I’m willing to pay. I am absolutely dreading the usual dance with a dealer. To be able to go online, build my car, and then have it delivered sounds like a dream!

[MichelMawon]

It’s baffling to me that this is only now a consideration. The fact that dealerships are privately owned, yet, serve as the consumer’s primary contact with the brand, gives them tremendous influence over whether that brand will earn customer’s repeat business. It is beyond me that manufacturers would spend so much time on perfecting their product and let a bad dealer torpedo their sales, leaving such a delicate thing in the hands of people they don’t regulate. Many dealerships are predatory and them making commissions put their interests at odds with yours.

[anthonyiannozzi]

I was accosted by a sales manager at Right Toyota in Scottsdale. I walked out the door when they tried to charge me $1, 200+ for a "window tint". I ended up calling him a crook while walking out the door and he said "Say that to my face''. High pressure selling has now become picking a fight with their potential customers. Absolutiely I would rather buy on line and just use the dealer to take delivery and do service.

[patrickr]

I don’t have a problem with dealerships. I have a problem with being cheated.

[Shabbir-A.]

I was at Toyota dealership to get info for a new car. they asked for full name, phone number, e-mail address and driving license. this was asked to answer this question:: Do you have a Toyota Corolla in stock? I tried three dealerships, and all refused to give me a printed quote.

[charlesarmstrong]

The dealers brought this on themselves. They jacked up prices and where in bed with the banks to increase the price but 10 to 50 percent.