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I am a Toyota rep in Ottawa Canada. Ask your reps to separate the lease portion from the maintenance portion and then compare numbers. Also be honest with the rep and tell him the severity of your application including ramps. ambient temperatures etc. Most companies will give you their best numbers if they are trying to win business. Tell the Toyota rep that there is a big price difference and perhaps he has missed something. We have lost a lot of deals to competition based on price to learn later that the customer didn't disclose a 100 foot ramp that is part of their production process.
Lease rates from Toyota are usually at a lower interest rate than most of the competition since Toyota usually subvents the rate. Maintenance rates are usually calculated based on the anticipated annual hourly usage, severity of the application and the distance the primary tech has to travel to the site. We have people that track the costs of similar applications with similar trucks to get a suitable rate. Sometimes we get it wrong and we lose. Sometimes we get it wrong and win but usually it averages out that the costs match the maintenance with a reasonable profit.
Another thing to ask your rep is if you are allowed to "pool" the hours. This would reduce the likelyhood of overtime charges if one truck is used more thanthe others as long as the total hours are within the alotted amount.
Normal wear and tear is expected. We always anticipate new paint, new tires, new seat, full cleanup and full service will be the norm.
As for damages to equipment when they are returned. The way we handle it is to handle all customer damage repairs on an ongoing basis and advise the supervisors of the damages at the time they occur. This also allows the customer to address these issues with their staff to prevent damage due to misuse.
It would be negligent of the dealer to allow damage to accumulate and then hit the customer at the end with all sorts of damage claims.
The end value of a lease is always calculated based on a residual value that takes into consideration the anticipated hours and the severity of the application. If the dealer sets the residual too high they may win the order but lose at the end.
Switching to a Toyota fleet would definitely be a good thing both in safety and productivity. Toyota products are usually the lowest to maintain and the techs are all factory trained. Toyota is #1 for a reason.....
  • Posted 30 Jul 2009 23:20
  • Modified 31 Jul 2009 00:12 by poster
  • By Howard_G
  • joined 30 Jul'09 - 11 messages
  • Ontario, Canada
The distain for poor quality quickly extinguishes the short lived joy of low price.

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