2016 Toyota Fortuner

[Wh1stl3r2]

Not really surprised dealers are maximizing opportunity, just wondering if the requirement to buy accessories is true. I hope they're not gaudy like Honda's Modulo.

[wandrokulit]

The front end's chrome bits remind me of Ultron. Apart from that, pretty car.

In-house financing gets priority even over cash buyers. You guys might want to check out Toyota Marikina and Cubao. Being Metrobank owned, in-house financing is Metrobank financing. Would save you a bundle and not have to worry about not getting prioritized.

Is it true that Toyota is requiring buyers to purchase around 100K worth of Toyota accessories?

Last priority cash buyer. My sales agent won't entertain me now for the new Fort because he knows I'm a cash buyer.

[dreamur]

Last priority cash buyer. My sales agent won't entertain me now for the new Fort because he knows I'm a cash buyer.

Nonsense. Are you paying in cold cash or through bank PO? Either way that is still sales to the dealer and they should not refuse your business. Why dont you talk to the manager? SAs have their own personal agenda.

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[predo]

I remember when MU-X was newly released. SA's won't bother entertaining you further the moment they hear bank PO..i wouldn't be surprise with this Fortuner.nasty practice.

Nonsense. Are you paying in cold cash or through bank PO? Either way that is still sales to the dealer and they should not refuse your business. Why dont you talk to the manager? SAs have their own personal agenda.

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[vinj]

Ganyan talaga, the agent gets more incentives from in-house financing and insurance so they will prioritize that to augment their income. It's but natural especially in high volume car companies where sales commissions per unit is quite low.

Just hold your wallets and wait a few months before ordering a unit if you can wait and wait for the hype and euphoria to settle.

[dreamur]

And is this being tolerated by upper mgmt when the objective is to maximize revenue?

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[JohnM]

And is this being tolerated by upper mgmt when the objective is to maximize revenue?

When buyers are willing to wait months for their ride they can afford to set aside those who do not toe the line

Some cash buyers get their vehicles via in-house loan and insurance then just pay off the balance after one year.

Get them while they're hot

[vinj]

And is this being tolerated by upper mgmt when the objective is to maximize revenue?

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Just trying to put on the management hat: The higher the margins from a sale, the better. That is especially if you have limited supply and brisk demand (as is the case when a vehicle is newly launched). Receiving payment in cash is not an incentive to them since they also get cash if the vehicle is settled through financing and it is not the dealer who takes on the burden of the amortization.

If i were an agent, i too would want to earn more per sale. Same effort, better returns, especially when units on hand are limited.

Companies time and again, will always look at the effects of price adjustments on their topline. They can always raise margins now and give good discount incentives later on when sales are wanting.

[crazy_boy]

i was told that the allocation per month per dealership is limited to 20 units.

[jut703]

Super liit ng kita sa cash. Of course they'll prioritize in-house financing.

The only time you can get a hot-selling, low-supply car in cash is if you know someone from the inside.


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[dreamur]

Okay, I get it. So they are offering inhouse financing so that they can collect the interest instead of the bank.

Still they run the risk of buyers defaulting on their amortization as opposed to having the banks take on this risk. Of course they can sequester the unit but that is too muc administrative work for me. Id rather have the cash now at lower margin than reflecting higher sales and margin but recognizing a write off later. But I guess the SAs would have collected their commissions by then so they dont even care at all. Customer service down the drain.

Oh, and will top mgmt get a share of the commission? If that is the case, then that explains everything.

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[shadow]

Deja vu lang ng unang labas ng 1st gen fortuner.


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[jut703]

Okay, I get it. So they are offering inhouse financing so that they can collect the interest instead of the bank.

Still they run the risk of buyers defaulting on their amortization as opposed to having the banks take on this risk. Of course they can sequester the unit but that is too muc administrative work for me. Id rather have the cash now at lower margin than reflecting higher sales and margin but recognizing a write off later. But I guess the SAs would have collected their commissions by then so they dont even care at all. Customer service down the drain.

Oh, and will top mgmt get a share of the commission? If that is the case, then that explains everything.

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Sobrang layo ng margin ng cash sa in-house. At 40% effective interest over 5 years, the customer pays the value of an Altis V for a Vios E.

Bad debt expense is already factored in, but still, the huge interest far offsets that.

If your objective is to make the most profit from a scarce number of available units, why sell cash when you can sell in-house? There is no lack of in-house financing buyers. It feeds on the materialism of people who want cars now, and these customers even think they've gotten good deals because of low DP and a long payment term.

The concept of interest is very abstract for many, and they don't look at expenses based on total cash outlay or even NPV basis.


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[dreamur]

^Exactly my sentiments bro and I sympathize with the cash buyer who could have saved money upfront. But then again he can invest his idle cash in the stock market and earn more than the 40% margin the casas are getting.

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[br733]

i am not sure if some of the sales reps of toyota dealerships are trying to create a feeding frenzy here.

i am on queue for a g variant diesel and my sales rep called me up last thurs to say they had available v variant 4 x 2 diesel in case i was interested....

i did not get it bec i had wanted the cheaper variant only...

[vinj]

Okay, I get it. So they are offering inhouse financing so that they can collect the interest instead of the bank.

Still they run the risk of buyers defaulting on their amortization as opposed to having the banks take on this risk. Of course they can sequester the unit but that is too muc administrative work for me. Id rather have the cash now at lower margin than reflecting higher sales and margin but recognizing a write off later. But I guess the SAs would have collected their commissions by then so they dont even care at all. Customer service down the drain.

Oh, and will top mgmt get a share of the commission? If that is the case, then that explains everything.

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In house financing is another business and is not the dealer per se. There is Toyota Financing (a separate business entity) who will take-on the loan and they settle the dealer in full. Thus, the dealer does not have any risk, earns from the commission/fees from the financing, and still gets paid in cash. It's having your cake, and eating it too. ;)

[dreamur]

^Sneaky

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[Wh1stl3r2]

Sobrang layo ng margin ng cash sa in-house. At 40% effective interest over 5 years, the customer pays the value of an Altis V for a Vios E.

Bad debt expense is already factored in, but still, the huge interest far offsets that.

If your objective is to make the most profit from a scarce number of available units, why sell cash when you can sell in-house? There is no lack of in-house financing buyers. It feeds on the materialism of people who want cars now, and these customers even think they've gotten good deals because of low DP and a long payment term.

The concept of interest is very abstract for many, and they don't look at expenses based on total cash outlay or even NPV basis.


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This is so true. I have a couple of stubborn, not so bright friends I don't even dare talk to about effective interest rates and finances in general. It's hard to watch them slowly crash and burn but for some people, some lessons can only be learned the hard way.

[waver]

Hi guys, it seems everyone here is saying that the only course of action is to either wait for demand to go down (which could take months), or to avail in-house financing with those high interest rates?

[Jiggs]

Managed to check the new Fort sa Toyota Alabang, very accomodating naman mga SA even I told them that if ever it wil be a bank PO, they even pointed me to the person who will accept trade in of the older Fort model. My comments she grew wider and longer by few mm but looks like mas lower ang height. Headroom was definitely lower than the previous model. She was definitely much nicer in metal than any pics in the web...so parang not photogenic..still the front bumper w/ those chrome fogs medyo off yung design IMHO. Underpinnings halos no changes, noted that there was no undercoat applied only to wheel wells fender meron. Engines layout is much more neat than the older, what I also noted was the poor electrical harness/connection there were too many exposed small colored wires sa mga sensor connectors, sana nalagyan ng proper sleeves. Also for a 1.7M ++ vehicle wala din hydraulic rod to support ang hood, though power tailgate naman sya. Seats is as well improved auto fold up ang 2nd row and much easier ang 3rd row to stow up compared sa previous model. By the way model I refferred to is the 4x2 TOTL