Thursday, February 11, 2016

The Last Days of Scion: A Dealers Perspective

In January of 2016 our Toyota of Tampa Bay store sold 22 Scions (about 8% of our New Car Volume). While that doesn't sound like a lot, we have new car franchised dealerships that play in the same relative ballpark of volume here in Florida (MINI, Buick, GMC, Mitsubishi). So was it a surprise that the Scion nameplate is going away? In many ways yes, but to a great degree it's just the right thing to do. I've seen the media misrepresent this event in their typical fashion ("Millennials are less interested in owning cars, Toyota says" Las Vegas Review Journal) and I felt that my thoughts would paint a picture closer to reality for all concerned. From a dealers perspective and a Scion owner's it's not all positive news but there is a silver lining here. 

First Impressions
Sitting in the showroom of our first Morgan Auto dealership I remember my first impressions of the Scion brand in 2004: Funky, simple to configure, no haggle (pure price) and hell bent on offering a quicker more streamlined process of car buying to the consumer (something dealerships still struggle with 11 years later). The target was younger buyers and I thought Toyota's approach was positive and proactive. Not every Scion model appealed to the target Generation X/Y consumer (xB for example) but overall the Scion brand did its job of bringing first time customers into the Toyota umbrella (70% of Scion buyers were Toyota first timers). Over the next five years I watched as Honda customers got older and Toyota's younger. Scion was a part of solving a challenge that some of Toyota's competition struggled with. 

What Scion did for Toyota
No one wants to know their average buyer's age is growing each year. Acquiring a consumer and creating brand loyalty inside of the 25-34 demo is a huge achievement in retail especially when you have more mature models to bring them into later in life (Camry, Prius, Highlander, Sienna). Plus who wants the stigma of being the most driven car on the Senior PGA Tour (think Buick, Lincoln)? We used to have Scion meetups at the dealership. Scion gave us the right to enjoy the car rally element that only exotic buyers and classic car owners enjoyed. It was always a positive talking point. Their concept models were outlandish and progressive. Then it all just seemed to go away. 

Flyer from a 2008 Scion Event at Toyota of Tampa Bay "Wicked Whips 2.0"

The Beginning of the End
Around 2009 sales began to decrease and the excitement for the brand dropped to a whisper. New Scion models didn't ignite the passion they first had and Toyota annual meetings were spent with mentions of rebooting and revitalizing the brand. Scion tC (Scion's volume model) sales fell in half. The crossover SUV segment was growing and Scion didn't have a dog in that fight. Even the fabled Toyota 86, which became the rear wheel drive Scion FR-S (great car/right price) couldn't bring back the brand. Scion had fallen into a niche and lost all aspirations of regaining growth and of becoming a "2nd dealership" for Toyota dealers. 

What is Actually Happening / Which Scion models are staying with the Toyota brand?
All Scion models will fold into the Toyota brand in 2017 save for the Scion tC which had previously been slated to be discontinued in 2016. So the Scion iA, iM and the FR-S will soon have Toyota badging. Even the Scion CH-R crossover concept will honor it's reported release but as a Toyota model instead. A Scion owners service relationship with their Toyota dealership should remain virtually unchanged. This is good news ultimately for everyone. While I do believe Scion helped bring younger buyers to Toyota over time Toyota was began to do this on their own. It's a challenge to manage two separate brand philosophies under one roof and many elements of the Scion experience are coming to Toyota anyway. 

Is the death of Scion a referendum on "Pure Price?" 
I think to a degree the death of Scion does tell us something about "Pure Price." While the consumer experience is crying out for a new way to engage, interact and ultimately buy from dealers, the appeal of Pure Price within this is overstated. In the past months Toyota has placed a renewed focus on reducing the time it takes to buy a car while encouraging dealers to take advantage of resources that allow customers to do complete a great deal of the purchase from their couch. This is a positive area of investment for dealers. Dealers are re-aligning themselves for this new reality. While there may be generational differences amongst our guests in their level of comfort with negotiation, it is my personal believe that we should trust our customers to be well researched and discerning which can lead to an efficient two way conversation about price.

Scion dealerships need to share in the blame too 
The Scion model of "Pure Price" and delivery within an hour was seldom adhered to by dealers. Competing dealers would use trade allowances, waived dealer fees and free accessories to compromise the element of "Pure Price" and buy consumer favor. Scion as a brand never got a fair look as to the success of this model simply because DEALERSHIPS failed to discipline themselves to it.

Scion: Victim of Its Own Success? 
Ironically Toyota of North America CEO Jim Lentz (and former head of Scion) foretold of this event. "Do you risk alienating the boomer buyer to get to Gen Y?" Lentz told Automotive News in 2002. Scion after all allowed Toyota to market in unconventional ways, breaking ground in event, promotional and social media marketing. "No, it's safer to create Scion and keep the boomer buyer."

He then added, "But in the future, we will have to integrate Toyota and Scion." 

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  112. What you should know about selling your junk cars for cash, first, is that you really can't get much of a deal. That's because so many people are in the market for used vehicles. These include used trucks, SUV's, and even cars. It's important to remember, though, that there are many different places you can find these vehicles. Your local scrap yards and auto auctions are a great resource, as are online brokers.best cash for cars perth

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  113. Among the best bargains in Southern California, the North Coast Wreckers have been giving great service to fishing enthusiasts and sailors for more than three decades. Cash for Scrap Cars Townsville Since their humble beginnings, the company has expanded and now offers a much wider selection of quality fishing tackle, fishing poles, reels and accessories. In fact, if you are not sure about something or need advice, you can always call them. Their friendly staff and knowledgeable staff are there to help you any way they canTownsville Wreckers

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  114. Cash for car removal Brisbane can be arranged for a number of reasons. cash for scrap cars perthPerhaps you want to get rid of an old car you have kept for many years but now feel reluctant to part with, or maybe you need to clear out your garage space so you can move house. No matter what your reason, if you find yourself needing to make use of cash for car removal service, always consult the experts at Cash for Car Removal Brisbane to discuss your options.car removal

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  115. When it comes to car removal, there are many companies that you can choose from. car removal rockhampton Finding a company that provides affordable car removal Bridgetown or anywhere else in Australia is not difficult. You just need to know where to look and what specific companies offer free car removal. If you are not familiar with the term "free car removal" then perhaps you need to re-read this article:free car removal

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  116. Cash for Cars is a business that purchases all kinds of vehicles whether it needs to be scrapped or damaged. Cash for Cars Bowen Valley sells cars, cash for scrap car removal canberraRVs, motorbikes, boats, trailers, off road vehicles, special purpose vehicles and more. Their motto is "we buy what you don't want and give what we can sell." Cash for Cars Bowen Valley takes all kinds of unwanted cars, RVs, motorbikes, boats, trailers, off road vehicles, etc., and dispose them of legally.Cash for Cars Removal Canberra

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  117. Cash for Cars is a business that purchases all kinds of vehicles whether it needs to be scrapped or damaged. Cash for Cars Bowen Valley sells cars, Unwanted Car RemovalRVs, motorbikes, boats, trailers, off road vehicles, special purpose vehicles and more. Their motto is "we buy what you don't want and give what we can sell." Cash for Cars Bowen Valley takes all kinds of unwanted cars, RVs, motorbikes, boats, trailers, off road vehicles, etc., and dispose them of legally.Car Disposal Canberra

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  119. Cash for Cars is a registered company in ACT and they do all their business through mail order. Cash for Trucks CanberraThe company takes care of all the paperwork and shipping of the vehicles. They send the vehicles through the mail so that there is no waiting or further invoicing involved. Cash for Cars Canberra takes care of the process of getting rid of the vehicles, giving you their convenient payment method of credit cards.unwanted Car Buyer Canberra

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  120. Get Quickest Cash for Cars Rockhampton up to $9,998 Get top cash for cars car removal rockhampton Rockhampton up to $9,998 if you have junk, scrap, used, damaged, Broken Car Collection and unwanted vehicles.We offer quality car removals wide across Rockhampton. Call us or submit an online form, and we will get back to you with a free cash quote free car removal

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  123. Cash for scrap cars Newcastle - This method of getting cash for cars Newcastle can be very convenient if you are trying to get rid of an unwanted car or truck. This works very well for anyone who has excess cash lying around and doesn't want to spend it on a new or used car. Even people who are not in the automobile business can cash in their old cars by selling them directly to scrappers in this city.

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  124. You can be one of them and if you have a wreck or two in your driveway you know how to cash for cars Palmerston North. This may not be a problem if your vehicle is relatively new, but if your car is 10 years old you’ll probably still get a decent price or you want to remove your vehicle then Car Removal Palmerston North is for you. If you find that selling your used car is not profitable there are many more options available like Wreckers Palmerston North.Cars Buyer Palmerston North is the best place many people want to sell or buy cars and not only because they don’t want to keep them, but also because it’s a hassle trying to find a new buyer.

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  125. sell my car for cash ensures that your money will get you optimum results by removing your car safely and securely without any hassle.Cash For Cars Red Hill is one of the leading companies that offer free on-the-spot car removal, guaranteed, safe and timely services.Cash For Cars Brisbane always gives a maximum of five free quotes on your car from various automobile removal companies.car removal sunshine coast gives a free instant quote on all the cars that they offer. Cash For Cars Sandgate also offers a 24 hours assistance to help you remove unwanted cars.

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  126. Scrap Car Removal - In Palmerston North, there is nothing more important than ensuring you get the scrap vehicle removal you need. If you have a salvaged car that you'd like to get rid of but can't afford to pay the high cost of a scraper, we're the place to be. Scrap car removal and processing are one of our main businesses. We use state-of-the-art equipment to help process your vehicle quickly and securely. Our wreckers also process salvage vehicle imports, ensuring you get the best possible pricing on your imported vehicle.Wreckers Palmerston North

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  127. Cash for car removal is fast, easy, and safe with Ezy Cash. They have an extensive inventory of newer cars ranging from a Honda to a Toyota Prius. The top cash for cars includes Ford, Kia, Toyota, Mercedes Benz, Mazda, Lexus, Honda, and Nissan. Ezy Cash accepts cash for cars from any manufacturer, including Mercedes Benz, Saturn, Nissan, and Porsche. All car owners can get cash for cars from Ezy Cash.cash for scrap cars brisbane

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  128. When it comes to finding the right company to deal with, it's always important to ask around before finalising anything. Word-of-mouth recommendations have been a popular way for people to locate great auto wreckers over the years, and it won't be any different here in Adelaide. By asking people around (family and friends, colleagues, etc) you can find the best service providers close to you, reducing the overall travel time and expense. With this in mind, here are a few tips to help you find the right company in Adelaide to meet all your requirements.Wreckers Townsville

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  130. You could also look in the paper to find free quotes for your car, trucks or vans. You could also ask if you may be able to get cash for cars quote from a local scrap yard. If you live near a junk yard, you may be able to get free quotes for your car in exchange for taking it there to be scraped. Some scrap yards give cash for cars also. Check with local newspapers to see if anyone in your area has a scrap yard that may give you cash for cars quote.cash for cars rockhampton

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  131. Whether your car is damaged or not, there are many companies that offer top cash for damaged cars. But before selecting one, you need to check the terms and conditions, the payment methods, and the rates offered. In fact, most of these companies offer free quotes online and within the matter of minutes. So, it is very easy for a potential buyer to make a choice.cash for cars north brisbane

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  137. The Car Dealers of Choice" is the motto that represents Car Dealers of Choice, a leading car wreckers Brisbane shop. This shop accepts trade-ins and used car sales and has an excellent return policy and guarantee on all of our vehicles. Most of our vehicles come with a one year or unlimited mileage warranty.cash for scrap cars Caboolture

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  138. Cash4CarWrecker is one of the premier car wreckers Brisbane businesses. The Cash4CarWrecker team is dedicated to providing quality vehicle wrecker services to both private clients and to the general public. They specialize in the purchase and sale of all types of vehicles and will provide the necessary service and product support for repairs. If you are looking for top dollar for your used car or truck, then Cash4CarWrecker is the business for you. car wreckers brisbaneCash For Unwanted Cars Palmerston

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