Toyota and Honda: Resale Value Leaders Amidst Change

Toyota and Honda excel in resale value and customer loyalty due to their focus on quality and efficient production.

### The Resilience of Toyota and Honda in a Changing Automotive Landscape
* 🚗 Toyota and Honda, while often labeled as "**boring**" by critics, dominate the used car market due to their **strong resale values and reliability**.
* 📊 Toyota has topped Kelley Blue Book's best resale value list **eight times since 2014**, with Lexus winning the luxury category **five times**, showcasing their **consistent performance in maintaining vehicle value**.
* 💪 Both companies maintain lower levels of incentives and fleet sales compared to competitors, which helps protect their resale values; Toyota's fleet sales account for **only 14% of its total sales**, while Honda's are at **just 1.8%**.
* 🔧 The Toyota Production System emphasizes **efficiency and quality**, allowing the company to avoid the pitfalls of **overproduction and brand-destroying sales tactics**, which has solidified its **market position**.
* 🏆 Despite their successes, both brands face challenges, including a transition to electric vehicles (EVs) where Toyota has been criticized for **lagging behind competitors**.
* ⚠ Recent scandals involving safety checks and recalls, such as Honda's recall of **750,000 vehicles for faulty airbags**, highlight that **no automaker is without flaws**.
* 🔮 The future remains uncertain as younger consumers show **less brand loyalty**, and new entrants like Chinese manufacturers and software-defined vehicles disrupt the **traditional automotive landscape**.
* 💡 "We have cars that are **fun, cool, and interesting**," emphasizes the need for Toyota and Honda to **adapt and innovate** to maintain their **competitive edge** in an evolving market.

Why Used Toyotas And Hondas Are So Expensive

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Toyota and Honda, often criticized for making "boring" cars, excel in holding their value, with Toyota topping Kelley Blue Book's best resale value list eight times since 2014.

The two automakers have maintained high resale values through consistent customer demand and a focus on durability.

Despite their success, they face challenges from EVs, software, and competition, but their unique strategies have set them apart in the automotive industry.

Toyota offers minimal incentives and has a lower percentage of fleet sales compared to Honda, resulting in higher resale values.

Both companies maintain low inventory levels and quick car turnover, contributing to their strong residual values.

Toyota's focus on quality, durability, and customer satisfaction, along with its unique culture and continuous improvement efforts, gives it a competitive advantage in the market.

Toyota and Lexus: Masters of Reliability and Efficiency

Toyota and Lexus consistently top reliability and dependability rankings, with a strong track record of producing vehicles that can last over a million miles.

The automakers are also leaders in the hybrid market, with quick sales and high resale values.

Toyota's renowned Production System and lean manufacturing principles play a crucial role in reducing waste and improving efficiency in vehicle production.

Toyota's Pull System and Focus on Quality

Toyota's Production System operates as a pull system, driven by demand, and emphasizes quality and durability through employee empowerment and standardized designs.

The company invests in training and problem-solving, aiming for perfection through testing and fine-tuning.

While Toyota and Honda's cautious approach to new technology has garnered customer loyalty, they have faced criticism and scandals related to safety data and vehicle recalls.

Toyota, once a leader in alternative powertrains, is now lagging in the transition to electric vehicles (EVs) with only two models, the Bz4x and Lexus RZ.

The Bz4x's rollout was problematic, leading to a stop sale and damaging the brand's reputation.

The auto industry is experiencing unprecedented variation in ideas and innovation, with Chinese manufacturers and new players like Tesla and Rivian gaining an advantage through rapid vehicle updates and software-defined features.