Japan
Used Vehicle ('U-Car') Business
Before the 1980s when the new car market was expanding, car dealers had to increase the trade-in price of used cars to get more customers to purchase new cars, and in place of downpayments had to secure profits by liquidating the used cars they took in as soon as possible. As a result of these factors, the main channel for recirculating used cars shifted from negotiated transactions between businesses to the auto auction, which guaranteed greater selection, fairness, and reliability.
As this shift was taking place, Toyota was strengthening its auction business by increasing the number of locations of its Toyota Auto Auction (TAA) auction house, systemizing auction transactions, and expanding to allow participation by non-business members. It was also working to reorganize its used car dealerships and strengthen sales activities to increase the efficiency of retail sales.
In the early 1990s, when the new car market was starting to turn cyclical, dealerships faced the growing challenge of making used cars (called 'U-Car' at Toyota since 2001) more than an auxiliary business. Used cars had to be something that would contribute to overall business stability by leading to future trade-ins and encouraging more customers to have their own cars serviced.
In the used car industry, meanwhile, the emergence of car buying companies and the expansion of retail franchises increased the level of competition in all markets from procurement to sales.
Various changes started appearing on the customers side as well, as buyers of used cars took advantage of the rapidly expanding Internet to compare information from multiple used car websites, and as they sought increasingly higher quality in their used cars.
In response, Toyota launched a car buyer's network, T-UP, and strove to add more content to its used car search website, 'Gazoo.com U-Car Info'.
And to directly communicate to customers Toyota's image of safety and reliability, in autumn 2010 Toyota officially launched T-Value, a U-Car brand that combined three highly popular items (complete cleaning, vehicle inspection certificate-based quality assessment, and the 'Long Run' warranty) into a single set.
U-Car Retail Sales and Market Share of Toyota Dealerships
Major Developments
- Note :
- Retail standard just reasonable in 1993
Major Developments
Year
|
Month
|
Event
|
---|---|---|
1966
|
January
|
Toyota Motor Sales Co., Ltd. establishes Used Cars Section in its Vehicle Operations Division
|
1967
|
May
|
Toyota Auto Auction (TAA) network launched as first auto auction in Japan (Tokyo, Nagoya, Osaka)
|
1978
|
February
|
Vehicle Operations Division's Used Cars Section reorganized into Used Cars Division
|
1979
|
October
|
"Long Run" warranty program begins on used vehicles at all certified Toyota dealers
|
1981
|
September
|
TAA Kanto site introduces industry's first two-lane system
|
1982
|
October
|
Inspection manual instituted for used car dealers
|
1986
|
May
|
TAA Kinki site moves to Neyagawa, Osaka Prefecture, Japan
|
1990
|
July
|
'Excellent Maintenance Car' certification using universal functional maintenance standards commenced
|
1991
|
May
|
TAA Kanto site and Chubu site introduce POS and electronic auctioning systems
|
1994
|
October
|
"Excellent Car" certification created for mid- and high-class models
|
1996
|
February
|
"High-Quality Car" certification, with enhanced warranty, inspection and maintenance, created
|
July
|
||
1998
|
April
|
U-Car data search system, GAZOO UVIS, introduced nationwide
|
1999
|
January
|
TAA begins online auctions
|
April
|
U-Car price data search system, UMI, introduced
|
|
May
|
TAA Chubu site moves to Kawagoe, Mie Prefecture
|
|
July
|
High-volume retailer of non-Toyota-brand vehicles, Car Lots, established
|
|
December
|
U-Car portal site, Gazoo.com U-Car Info, launched
|
|
2000
|
February
|
Toyota Used Car Sales Co., Ltd. changes name to Toyota Usec and moves headquarters to Makuhari Fukutoshin, Chiba Prefecture, Japan
|
April
|
||
|
TAA Tohoku site and Kyushu site established
|
|
2001
|
January
|
Japan Sales Planning Division's Used Car Department reorganized into Used Car Business Division
|
|
"U-Cars" used to enhance image of used cars
|
|
2005
|
November
|
Retailer, Toyota U-Car SalesCreate Co., Ltd. established in Saitama Prefecture
|
December
|
Toyota Usec agrees to business tie-up with CAA Co., Ltd.
|
|
2006
|
May
|
TAA launches online inventory search service, T-Web
|
2008
|
January
|
Toyota U-Car quality assessment program commenced
|
2009
|
January
|
T's Value (now T-Value) service launched on trial-basis to promote trust in the Toyota brand
|
July
|
TAA Shikoku site established, completing the Toyota Auto Auction's nationwide network
|
|
2010
|
October
|
|
2011
|
April
|
Approximately 850 used cars in inventory at south Kanto region dealers supplied to affected areas of the Great East Japan Earthquake (until May)
|
May
|
Approximately 650 used cars in inventory at Japan-wide vehicle dealers, Rental & Leasing dealers, and Toyota Usec are used to address nationwide supply shortage including in the disaster-stricken areas
|
|
December
|
Number of dealers offering T-Value service expanded to 140
|
Used car related links (Japanese)
- ・Gazoo.com U-Car Infohttp://gazoo.com/U-Car/
- ・T-UPhttp://www.toyota.co.jp/t-up/
- ・Toyota Auto Auction (TAA)http://taaweb.jp/