bitkahuna

iTrader: (20)

car makers make money when new vehicles are sold. dealers make money on those too and on cpo and other used, but mainly on service.

so besides having a 'reputation' for reliability, which is of debatable value with all vehicles now highly reliable and even many supposedly 'unreliable' vehicles selling well, why should any maker care if a car lasts more than the warranty period / mileage?

bitkahuna

iTrader: (20)

And i don't see phone makers caring if a phone lasts a long time. granted, that's a much less expensive purchase, but rapid changes in tech mean an old phone is worthless except to luddites and stubborn people.

LexBob2

The reliable reputation, whether accurate or not, helps to bring people into the dealerships and sell the new cars.

Hoovey689

iTrader: (16)

Good for marketing, brand image/perception, customer retention to name a few

mmarshall

Well, excuse me, but you can count me in with the Luddites.....I'm perfectly happy with my long-lasting iPhone4....a little slow sometimes, but built like a tank

And.......what's the best way to keep your car running past the warranty-expiration date, besides the obvious things of not abusing it and driving sensibly? Regular, factory-recommended service.

Don't forget, dealers and manufacturers also make money by selling extended warranties. Obviously, the better-built the car, the better it is maintained, and the more sensibly it is driven, the less money the dealer and/or manufacturer is likely to lose by that warranty ever being actually used.

jadu

iTrader: (42)

^^^ agreed. reliability brings customers back. word of mouth helps build clientele. in my immediate family alone, our lexus vehicles tripled in number in the past few years

Toys4RJill

All depends on what the buyer needs which is defined by the manufacturer. Mercedes-Benz does not promise reliability, it promises prestige, technology, etc etc. General Motors promises BIG rebates and discounts (ex Buick and their 20% promotion). Dodge is offering $18,000 CD off the price of a new Ram right now. With all the said, there are a lot of buyers who do not want to keep their car as long as those who keep their Toyota. I think the magic number for most people is likely 80K miles. 5 or 6 years, then they get a new car. I see very little point of buying any Toyota or Lexus if you are not in it for the long haul.

For Toyota and Lexus, it has always been about long term value and customer satisfaction. Buying a Toyota makes sense if you keep it for a long period of time. You are kind of paying for future repairs in the fact that Toyota/Lexus models do not break as often as others.

So with all of what I just said, what I have heard from so many people is this. One can buy a Ram or a Tundra for the same $50K price. But Toyota's do not come with $10K or $15K off the sticker price. They might as well get the Ram because how many times can you fix the Ram for the $15K if you pocket at the time of purchase?

Propulsion

^^ This.. While quality, value and reliability are huge factors for some Car manufacturers, Luxury car makers promise no such thing. Toyota/ Lexus will always have my business as long as the design is appealing.

mmarshall

...And repairs, if not warranty-related, can cost a bundle nowadays, especially with the upmarket German makes (Audi, BMW, Mercedes, Porsche). Mercedes and Porsche dealers, especially, are notorious for cleaning out one's bank account for repairs.

This may be a little off-topic, but the Ram's luxury-car ride and sound insulation also appeals to a number of buyers. Its road manners are absolutely remarkable for a pickup. The Honda Ridgeline also rates very high on comfort, but unlike the Ram, it is not a traditional BOF truck.

Toys4RJill

Exactly. Luxury car makers do a wonderful job of offering new design trends, amazing tech, a promise of a certain type of lifestyle, amazing interiors etc etc. And you get all that for a very short time, then the new design comes out and the older design no longer achieves the objective. All done on purpose with a intentional plan.

My latest favorite Mercedes is the new E-class coupe. But over time, that will fade as something new comes out.

bitkahuna

iTrader: (20)

Ok so why not keep driving the verano you had?

pman6

because I'm much less likely to buy from a brand without a reliable reputation.

But judging from bmw's sales record, and countless internet posts of costly out-of-warranty repairs, neither BMW nor customers could give a crap whether their cars last past 50k miles.

people complain, but continue buying. So really, bmw probably doesn't have to care.

My older lexus is almost 15 years old. If it didn't last this long, I probably wouldn't consider another lexus replacement.

bitkahuna

iTrader: (20)

Ah great post. Since i and as you say 'most people' fit those magic numbers, i and they are not a good fit for toyota/lexus unless i or they just love the design / features over other brands / models.

bitkahuna

iTrader: (20)

exactly.

But it seems to me that lexus can't have a good business model relying on customers buying every 15 years or so.

Toys4RJill

Yes the absolutely can. For a reasons, first off most of time historically Toyota or Lexus sell for a much higher profit (thus less rebates) than GM or Ford or Dodge. This is the target they are after, but they are also after the slightly higher income bracket within the segement. Then, a car like a RX350 is simply a high Toyota, the profit margin is huge. Finally, if you look at Toyota numbers, they have historically grown over the years, year after year. They have had excellent growth, but up until about 10 year ago, it was hard to get a Toyota with a discount compared to what they offer today.