Toyota is expanding its certified used car warranty program. It's adding a new Silver Certified level that will cover vehicles up to 10 model years old with between 60,000-125,000 miles on their odometers. It goes beyond the up to six model years and 85,000 miles covered by the Gold Certified trim.
Toyota says the move could help boost Toyota Certified's current sales of more than 370,000 vehicles per year.
“That’s a lot,” said Ron Cooney, Toyota Certified Used Vehicles (TCUV) sales operations manager. “Based on Motor Intelligence’s analysis, if Toyota Certified was a new vehicle brand, it would be ranked 13th out of the 48 makes in the market.
“But it’s also small when you step back and look at the bigger picture. According to figures compiled by Edmunds, some 6 million used Toyotas are sold every year. Yet our year-end financial statement shows that our dealers only sold 790,540 in 2023. So, there is a tremendous opportunity for growth here.”
Given Toyota's well-known reputation for quality, durability and reliability, Toyota says customers know that virtually any well-maintained Toyota is a good bet when buying used, whether it’s being sold by an independent dealer or private party. But now, with Silver Certified, Toyota says there even more reasons to purchase a used Toyota from a Toyota dealer.
A Silver Certified Toyota comes with:
- A limited powertrain warranty for 12 months/12,000 miles
- 24-hour roadside assistance for 12 months/12,000 miles
- A 136-point minimum quality assurance inspection
- A free CARFAX Vehicle History Report
- The option of including a trade-in to facilitate the transaction
- The option of financing the deal through Toyota Financial Services
- Trouble-free handling of the transaction, including DMV paperwork
Toyota also says the powertrain warranty and roadside assistance are transferable to the next owner at no cost if the vehicle is resold before the 12 month/12,000 mile expiration, which Toyota says boosts its resale value. The automaker says the warranty is honored at over 1,400 Toyota dealers in the continental U.S. and Canada.
“We’re not the first automaker to certify its older vehicles, but we studied what our competitors were offering and made sure we got it right,” Cooney said. “Some of them limit the warranty to three months. Others only offer it on some vehicles. Some don’t include CARFAX. It can get very confusing for the customer. We made sure our vehicles were covered for a full year, which is a big selling point to customers who aren’t used to getting any kind of warranty on an older/higher-mileage vehicle unless they pay extra for it.”
Cooney said Toyota’s dealers are supportive of this new level of certification and that because of it, they're more more likely to take in an older Toyota in trade. Also, based on initial feedback from dealers, Cooney said they are selling Silver Certified Toyotas faster than non-certified used vehicles— contributing to their bottom line.
“I can see used Toyotas sitting in a dealer’s inventory for 30 or 60 days,” Cooney said. “Then we launched Silver Certified. And the dealers who have taken advantage of this program have sold those cars more quickly.”
Selling more older certified vehicles isn't the only plus side for Toyota. The automaker says if these customers do need repairs under warranty, they are much more likely to bring their vehicles back to their Toyota dealers, generating even higher brand loyalty.
Toyota says the net effect is that the Toyota Certified Used Vehicle program helps boost vehicle resale values (a key metric when it comes to Toyota’s leasing business) and, perhaps most importantly, owner retention.
“We want to sell each of our vehicles at least four times: new, Gold Certified, Silver Certified and used,” Cooney said. “We want to keep that car, and the customer, in our family for as long as possible. Ultimately, that’s what this is all about.”
To learn more about the Toyota Certified Used Program click here.
Photo Credit: Toyota.