Toyota, a leading name synonymous with new vehicles, also places significant emphasis on the used car market. This focus stems from a deep understanding of how the new and used car sectors intertwine, creating benefits for Toyota, its dealerships, and, most importantly, its customers. This strategic approach is highlighted by Toyota’s long-standing commitment to its Certified Used Vehicles (TCUV) program, and its recent expansion to include older vehicles under the Silver Certified tier. This article delves into the Toyota Certified Used Car Program, explaining why it stands out and how it provides unparalleled peace of mind for used car buyers.
The Significance of Certified Used Cars for Toyota
Why would a company primarily known for new cars dedicate resources to used vehicles? The answer lies in the interconnected nature of the automotive market. Toyota recognizes that a robust used car program strengthens the entire brand ecosystem. Ron Cooney, Toyota Certified Used Vehicles (TCUV) sales operations manager, aptly points out the scale of their existing program: “Based on Motor Intelligence’s analysis, if Toyota Certified was a new vehicle brand, it would be ranked 13th out of the 48 makes in the market.” This impressive ranking underscores the program’s current success and its potential for further growth.
However, the opportunity is even larger. While Toyota Certified moves a significant volume, it only scratches the surface of the total used Toyota market. Edmunds data indicates that around 6 million used Toyotas are sold annually, dwarfing the 790,540 sold by Toyota dealers in 2023. This gap reveals substantial room for expansion and highlights the strategic importance of enhancing the Toyota Certified Used Car Program.
Expanding the Toyota Certified Program with Silver Certified
Toyota’s reputation for quality and reliability is a double-edged sword in the used car market. Consumers are aware that even older, well-maintained Toyotas offer dependable transportation, regardless of the seller. However, Toyota saw an opportunity to further solidify customer trust and expand its reach in the used car segment. This led to the introduction of the Silver Certified program, complementing the existing Gold Certified tier.
The Silver Certified program broadens the eligibility criteria for certified used Toyotas. Previously, the Gold Certified program focused on vehicles up to six model years old with 85,000 miles or less. Silver Certified extends this to include vehicles up to 10 model years old with between 60,000 and 125,000 miles. This expansion significantly increases the pool of vehicles that can qualify for certification, offering customers a wider selection of certified used Toyotas.
Benefits of Toyota Silver Certified Used Vehicles
The core appeal of the Toyota Certified Used Car Program, especially the Silver Certified tier, is simple: peace of mind. Buying a used car can often be fraught with uncertainty, but Toyota aims to eliminate those anxieties through a comprehensive certification process and robust benefits package. A Silver Certified Toyota comes with a suite of assurances designed to protect the buyer and enhance their ownership experience:
Warranty and Roadside Assistance
- Limited Powertrain Warranty: Provides coverage for 12 months or 12,000 miles, protecting against unexpected powertrain repairs.
- 24-hour Roadside Assistance: Offers support for 12 months or 12,000 miles, providing help in situations like breakdowns or lockouts.
These benefits are transferable to subsequent owners at no cost if the vehicle is resold within the coverage period, further boosting the vehicle’s resale value and adding another layer of assurance for the buyer. The warranty is honored at over 1,400 Toyota dealers across the continental U.S. and Canada, ensuring convenient service access.
Quality Assurance and Vehicle History
- 136-Point Minimum Quality Assurance Inspection: Each Silver Certified Toyota undergoes a rigorous inspection covering 136 points to ensure it meets Toyota’s high standards for quality and reliability.
- Free CARFAX® Vehicle History Report: Provides transparency about the vehicle’s past, including accident history, service records, and title information, empowering buyers to make informed decisions.
Financing and Trade-in Options
- Option of Financing through Toyota Financial Services: Simplifies the purchase process by offering financing options tailored to certified used vehicles, often with competitive rates.
- Trade-in Option: Facilitates seamless transactions by allowing customers to trade in their current vehicle, streamlining the buying process.
Hassle-Free Transaction
- Trouble-free handling of DMV paperwork: Toyota dealerships handle the complexities of DMV paperwork, saving buyers time and hassle.
Toyota deliberately designed the Silver Certified program to be customer-centric, learning from competitors and addressing common concerns in the used car market. “We’re not the first automaker to certify its older vehicles, but we studied what our competitors were offering and made sure we got it right,” Cooney explained. By offering a full year of warranty coverage, including CARFAX reports as standard, and ensuring comprehensive vehicle coverage, Toyota has created a program that truly stands out in the certified used car landscape.
Advantages for Toyota Dealers
The Toyota Certified Used Car Program, particularly the Silver Certified expansion, is not just beneficial for consumers; it also provides significant advantages to Toyota dealerships. Dealers are more inclined to accept older Toyotas as trade-ins knowing they can be certified and resold under the Silver Certified banner. This is crucial as trade-ins are integral to the majority of new car sales.
Furthermore, initial dealer feedback indicates that Silver Certified Toyotas are selling more quickly than non-certified used vehicles. Cooney noted, “I can see used Toyotas sitting in a dealer’s inventory for 30 or 60 days. Then we launched Silver Certified. And the dealers who have taken advantage of this program have sold those cars more quickly.” This faster turnover directly contributes to improved dealer profitability.
Additionally, warranty repairs under the Silver Certified program often bring customers back to Toyota dealerships for service. This fosters increased brand loyalty and strengthens the long-term customer-dealer relationship.
Boosting Resale Value and Customer Loyalty
The Toyota Certified Used Car Program has a broader impact beyond immediate sales. It positively influences vehicle resale values, a critical factor for Toyota’s leasing business. By enhancing the desirability and perceived value of used Toyotas, the program contributes to stronger residual values, making Toyota vehicles more attractive in both the new and used markets.
More importantly, the program drives customer retention. Toyota’s ultimate goal is to cultivate long-term relationships with its customers. As Cooney articulated, “We want to sell each of our vehicles at least four times: new, Gold Certified, Silver Certified and used. We want to keep that car, and the customer, in our family for as long as possible. Ultimately, that’s what this is all about.” The Toyota Certified Used Car Program, with its Silver Certified expansion, is a testament to this commitment, ensuring that Toyota vehicles and their owners remain part of the Toyota family for years to come.
