Why Are Toyotas So Expensive

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Last Updated on July 20, 2022

Whether talking about the new or used one, the Toyota price has been a hot topic as it’s usually on the higher side. But, why are Toyotas so expensive?

And, the simple answer lies in their quality characteristics. Being an expensive vehicle manufacturer, Toyotas ensures quality which is one of the most lacking aspects noticeable in cheaper truck brands.

They have some traits that make them one of the top leading companies in the US. And so, you’ll find almost all models of Toyota high-priced.

Now, without wasting a second, let’s take a look at the 4 main causes which make this brand’s vehicle models expensive. Ready!   

Toyotas So Expensive

4 Reasons Why Are Toyotas So Expensive

As a well-known brand, Toyota has to build high-tech vehicles which include pricey quality components. And, counting the production, research, marketing, variable cost in total, these aspects make Toyota expensive.

So, is Toyota overpriced? If you just look at the price tag, you might think it is costly. And the reason is because of the quality, added traits, performance, and durability. However, if you want something premium to last you almost forever, the high price tag would make sense.

Also to put it simply, the new Toyota will cost more than the used AKA second-hand one. In the recent market, a new model of this brand got a starting price of around $20k to $40k on average. Then again, you’ll find used models which are in a cheap range of about $6k to $25k.

Let’s learn more about all the factors that cause Toyota to become pricier.

1. Production Cost

The first point that causes Toyota to be expensive is the production cost. One of the common myths of the production of Toyota is that the manufacturer made trucks using cheap parts.

Since the brand is well-known, they use high-quality components which raises the overall cost. If this topic is new to you, then this formula might help you understand the cost of production. 

Total production cost = direct labor + direct material + overhead cost of manufacturing. 

When the labor, material, or overhead cost gets higher, the truck’s total expense boasts up automatically. 

2. Cost of Research & Development

Another reason why Toyotas are so costly is because of the research and development. To give customers the expected quality, safety, and reliability of daily usage, Toyota built vehicles doing good research and developing each model according to newfound data.

And these sectors do need high expenses to ensure better and modifying traits, unlike others. As a result, the total cost of Toyota raises and sits in an ‘expensive’ range.

3. Marketing Strategy of Toyota

Following a solid marketing strategy is important in the car business to display how good a product truly is. But, the cost of marketing is pretty expensive. And spending money on branding and marketing is why Toyota is pricier than any other vehicle.

To gain a specific profit or goal, the marketing strategy needs to be perfect. To do so, the overall cost gets higher eventually.

The marking procedure involves social media advertising and other marketing influences. To reach the top position, Toyota does a costly marketing plan.

4. Effect of Variable Cost

Being a famous Japanese brand, Toyota needs to pay a big amount of taxes and duties each year as it is in the pricing stage. These little costs make a huge impact on the overall cost by increasing the numbers.

The Toyota brand thinks of this stuff and then makes vehicles according to their plan. And, this involves reputation if not paying taxes regularly while having to ensure quality matching with current trends. That’s the reason why the cost of Toyota is high in the market.  

Frequently Asked Questions 

Are Toyotas worth the money?

They are worth the bucks if thinking of a dependable, quality, and well-made truck. Plus, the Toyotas are protective on most terrains.  

What is better, Toyota or Honda?

If looking deep into both brands, we find Toyota better than Honda. Toyota made classy trucks, quality pieces, and reliability. In comparison, Honda owns vehicles that contain better safety ratings.

Do Toyotas last longer?

Even if the mileage of Toyotas is not fixed, they still there, on average, last for around 200k to 250k miles. The calculation can vary based on each model. 

Wrapping Up

After expressing all the reasons why Toyotas are so expensive along with some most-asked queries, we hope you get a clear idea on the topic well. 

Not only Toyota is one of the most top-notch choices but also has been in the industry as a best-rated brand. 

Since you need ample protection, quality parts, and a reliable ride rather than the ‘attractive’ tag in trucks, all these qualities found in high-priced vehicles like Toyota are necessary. 

Yet, if the costly vehicle is not your thing, it would be better to hop for a used one. Spend time on research when thinking of getting a specific model. Best of Luck! 

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About the Author: Brian Silvestro

Brian Silvestro is the founder and chief editor of OffroadersArena. He spends his free time tending to his BMW iX SUV and explaining its merits to anyone who'll listen.

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