The program is one of nearly half a dozen pilot programs the OEM has launched, including Flexible Lease through Uber, Car Sharing pilot in partnership with Get Around, and short-term lease pilot though Launch Mobility.
“We’ve done a lot of pilots, focus groups, and tests,” Matthew Heydon, TFS group manager, retail transformation, said at the 18th annual Auto Finance Summit last week.
In September TFS announced that the 24-month, 20,000-mile limit program would bundle lease payment, car insurance, and maintenance coverage.
“Customers want personalization and transparency,” Heydon said. “For automotive, it’s transparency of price, transparency of a process.”
Toyota hopes the new pilot will offer simplicity through one payment for multiple services. The new leasing offer also aims to simplify processes. “We thought it was time, so we offered express purchase, but it wasn’t really about control of their time, whether it’s online or in the store,” Heydon said.
The program is not only aimed at younger consumers but those living in urban areas who may pay higher insurance premiums. The initial pilot, which is available for the 2019 UX Crossover model, will debut in Chicago, Boston, Los Angeles, and Miami. At the conference, it was also noted that the subscription-like model would include telematic services, such as hands-free calling and GPS.
Toyota declined to reveal the monthly payment amount for the program, how long the pilot program would operate, or which insurance provider the service would bundle with.
“We’re piloting a number of ideas for the purposes of testing and learning,” said Sabreen Dhillon, TFS senior manager of relationship marketing. “Typically, you have the traditional retail and lease products, and now it’s really about trying to get an understanding of what customers want, what they need, and what their actual behaviors are.”3 - Readers Like This Post