A wave of older vehicles is poised to flood Toyota dealer lots, but the automaker is confident it has just the plan to deal with it — pre-owned leasing.
Toyota is certain that adding a leasing option to its certified pre-owned inventory would boost CPO sales and clear lots in the face of a growing compliment of three-year-old product, Automotive News reports.
The plan has already been quietly rolled out in the U.S. Northeast, but a national strategy should be in place by the end of April, dependent on training in each dealer region. The option would allow a reduced commitment for buyers who don’t want to finance the full cost of a pre-owned vehicle.
“We’ve got a record number of off-lease returns this year — about 275,000 — and I think the industry also does,” stated Toyota Division general manager Bill Fay. “It’s important for all of the industry to have a plan to absorb those lease returns and have a good process to reintegrate them back into the marketplace.”
The move towards leasing, which is supported by the automaker’s financial services division, would push CPO sales up eight percent in the U.S. to a total of about 400,000 vehicles this year.
Eligible vehicles must be no older than three years and have less than 65,000 miles on the odometer. Lexus products aren’t included in the CPO leasing plan.
Toyota sales, which sank to less than 1.4 million in the U.S. in the wake of the recession, rose to nearly 2.1 million in 2015. Not surprisingly, the amount of car buyers opting to lease also rose post-recession, especially for those purchasing subcompact, compact and crossover vehicles.