Moving Up Trim Levels is Poor Value

[ncrunner]

I used the Toyota website to compare the SR5, TRD Sport, and TRD Sport Premium trim levels and I was struck by what a poor value these trim levels are. You pay $6,480 over the SR5 to get a TRD Sport and that buys you:

20 inch wheels vs 17​

gloss black grill, mirror caps, door handles, over fenders, badges​

gloss black hood scoop​

“premium” tail lights with a clear outer lens versus a red outer lens​

turn signal indicators on outside mirrors​

heated front seats​

Qi compatible wireless charging​

five USB ports​

12V aux power outlet and two 120V/400W AC outlets​

single zone automatic climate control​

leather wrapped shift knob​

carpet floor mats​

7 inch driver gauge vs 12​

These differences are costing Toyota a tiny fraction of that $6,480. If you go up another trim level to the TRD Sport Premium, that will cost you an additional $5,360 and that will buy you:

power front seats​

faux leather seat material​

hands free lift-gate​

heated steering wheel​

Auto-dimming mirror​

14 speaker audio vs 8 speaker audio​

panoramic view monitor​

From these two lists, the 120V outlet, auto dimming mirror, and upgraded seats are features I'd like but they are not worth almost 12 grand. I don't find these trim level prices particularly compelling. Are there other differences that are not listed that help to improve the value proposition of paying for trim levels above the SR5?

 

[visually oriented]

I've always struggled with the value proposition of Toyotas. The new generation of 4Runners could be an even worse deal. A 4Runner Platinum spec'd as I'd want lists for $65,000+. It is to be determined whether the 6g 4Runners will have the great reliability and resell value that helped justify the high MSRP of previous models.

 

[ModernDay4Runner]

I used the Toyota website to compare the SR5, TRD Sport, and TRD Sport Premium trim levels and I was struck by what a poor value these trim levels are. You pay $6,480 over the SR5 to get a TRD Sport and that buys you:

20 inch wheels vs 17​

gloss black grill, mirror caps, door handles, over fenders, badges​

gloss black hood scoop​

“premium” tail lights with a clear outer lens versus a red outer lens​

turn signal indicators on outside mirrors​

heated front seats​

Qi compatible wireless charging​

five USB ports​

12V aux power outlet and two 120V/400W AC outlets​

single zone automatic climate control​

leather wrapped shift knob​

carpet floor mats​

7 inch driver gauge vs 12​

These differences are costing Toyota a tiny fraction of that $6,480. If you go up another trim level to the TRD Sport Premium, that will cost you an additional $5,360 and that will buy you:

power front seats​

faux leather seat material​

hands free lift-gate​

heated steering wheel​

Auto-dimming mirror​

14 speaker audio vs 8 speaker audio​

panoramic view monitor​

From these two lists, the 120V outlet, auto dimming mirror, and upgraded seats are features I'd like but they are not worth almost 12 grand. I don't find these trim level prices particularly compelling. Are there other differences that are not listed that help to improve the value proposition of paying for trim levels above the SR5?

IMO the items that you've listed do justify the increased cost between an SR5 and Sport Premium. Would I prefer that I could get all those goodies for only one or two thousand more dollars, of course I do, but I can't. If people do not want to pay what Toyota is asking, then the vehicles will sit on the lots and dealerships will have to start cutting prices, so maybe there is chance you can get all of those features for a lot less than the $12k they would cost now. Personally, I don't think that will happen as I anticipate the Premiums are going to sell very well, but I may be biased because I am buying one. We'll see what happens.

 

[andim]

The TRD off road premium costs $5780 more than the TRD off road.

That gives you:

1. the option to buy a moonroof for another $850
2. handsfree power liftgate
3. SofTex®-trimmed heated and ventilated front seats; 8-way power-adjustable
4. Heated steering wheel
5. Auto-dimming day/night rearview mirror
6. TRD leather-wrapped shift knob
7. 14-in. Audio Multimedia Display with 14-speaker JBL® * Premium Audio
8. Multi-Terrain Monitor (MTM) with selectable front, side or rear views
9. Option to buy Integrated Trailer Brake Controller (ITBC)
10. Option to buy Trailer Backup Guide system

I marked in bold what I would buy in any case.

The individual parts in other car brands are sometimes sold separately, so I can estimate the prices that competitors ask for these features. I think the stuff I want adds up to about 4-5k at other car brands. This is in range of 5780 bucks, so this is what the market currently supports. If you base this on the production costs then it is of course quite expensive for the features you get.

The option for moonroof and trailer technology are important to me and I would pay the extra for that as well.

Given that you can't upgrade to the premium features later on makes it IMHO a good value to go for the TRD off road premium.

 

[ncrunner]

You can get a feel for how much it costs an auto manufacturer to add features like heated seats and automatic climate control by looking at a lower cost automobile.

https://www.kia.com/us/en/seltos/specs-compare

And my guess is Kia is *still* profiting even when they offer all of those things in a 1-2k trim level upgrade.

We can reasonably guess that 4Runner Trim Levels are 80-90% profit. They left out extremely cheap features so you will *choose* to provide them 6-12k in added profit.

 

[ModernDay4Runner]

You can get a feel for how much it costs an auto manufacturer to add features like heated seats and automatic climate control by looking at a lower cost automobile.

https://www.kia.com/us/en/seltos/specs-compare

And my guess is Kia is *still* profiting even when they offer all of those things in a 1-2k trim level upgrade.

We can reasonably guess that 4Runner Trim Levels are 80-90% profit. They left out extremely cheap features so you will *choose* to provide them 6-12k in added profit.

You may drive yourself crazy by trying to determine the profit Toyota makes on each option. Well, if you are going to let that help you decide which options you are willing to pay for. I think it really just comes down to to how much money are you willing to spend to get the options on the vehicle you want. Would you buy a Kia if that manufacturer makes less profit on the options you want? It kind of like going to a restaurant, ordering a ribeye and loaded baked potato and perhaps a IPA to wash it all down and wondering how much cost Longhorn Steakhouse has in those items. Yes, you can go to McDonalds and get a Happy Meal instead, but....will you be happy?

 

[ncrunner]

It's pretty clear to see the substantial qualitative differences between a 10$ Happy Meal and a 60$ tab and a steakhouse. In the happy meal is the lowest grade beef plus sawdust mixed in and the labor to staff a McDonalds is....I am going to keep my mouth shut...versus a nice steak house there's at least 30$ in just the food and better service. Now, let's compare that with 12k more for a modestly equipped 4Runner. Heated seats cost Toyota....50$ and they are charging you...well, over 6k. They had to go out of their way to order two versions of the fabric seats just so they could screw their buyers.

 

[ncrunner]

No worries. I get it. Ya'll will pay it. Best wishes.

 

[ModernDay4Runner]

It's pretty clear to see the substantial qualitative differences between a 10$ Happy Meal and a 60$ tab and a steakhouse. In the happy meal is the lowest grade beef plus sawdust mixed in and the labor to staff a McDonalds is....I am going to keep my mouth shut...versus a nice steak house there's at least 30$ in just the food and better service. Now, let's compare that with 12k more for a modestly equipped 4Runner. Heated seats cost Toyota....50$ and they are charging you...well, over 6k. They had to go out of their way to order two versions of the fabric seats just so they could screw their buyers.

But the buyer can take their money elsewhere. Toyota is giving you th option to buy from them or buy from someone else.I don't think their mindset is to screw their customers. That would be a bad business model and they're a pretty successful car manufacturer.

 

[CrispyTacoLover]

I used the Toyota website to compare the SR5, TRD Sport, and TRD Sport Premium trim levels and I was struck by what a poor value these trim levels are. You pay $6,480 over the SR5 to get a TRD Sport and that buys you:

20 inch wheels vs 17​

gloss black grill, mirror caps, door handles, over fenders, badges​

gloss black hood scoop​

“premium” tail lights with a clear outer lens versus a red outer lens​

turn signal indicators on outside mirrors​

heated front seats​

Qi compatible wireless charging​

five USB ports​

12V aux power outlet and two 120V/400W AC outlets​

single zone automatic climate control​

leather wrapped shift knob​

carpet floor mats​

7 inch driver gauge vs 12​

These differences are costing Toyota a tiny fraction of that $6,480. If you go up another trim level to the TRD Sport Premium, that will cost you an additional $5,360 and that will buy you:

power front seats​

faux leather seat material​

hands free lift-gate​

heated steering wheel​

Auto-dimming mirror​

14 speaker audio vs 8 speaker audio​

panoramic view monitor​

From these two lists, the 120V outlet, auto dimming mirror, and upgraded seats are features I'd like but they are not worth almost 12 grand. I don't find these trim level prices particularly compelling. Are there other differences that are not listed that help to improve the value proposition of paying for trim levels above the SR5?

What is the best value off-road capable SUV on the market?

 

[andim]

Of course the premium options are highly profitable for Toyota. We will see that in a year or so when the market is more saturated and instead of MSRP you can get $3k off. The 3k are from the profits on the $6k that the TRD off road premium costs. That gives the customer the strategy: buy now and pay Toyotas profits or wait and recoup some of that money by getting a discount. Jeep did exactly that kind of price gouging and it backfired and now you can get vehicles with 10k off.

Unfortunately right now there are only a few off road style cars like this so Toyota can set a high price. In the midsize cross over SUV market there are so many good cars that you get premium features for much less due to the insane competition.

I will likely eat up some of the Toyota premium costs. But I will wait 6 more months and hope for better availability and maybe 1-2 k off MSRP. Unless some different comparable truck gets released or the market stays tight and I have to pay.

 

[ncrunner]

What is the best value off-road capable SUV on the market?

Nothing to do with my point that the trim levels are obscenely inflated.

Of course the premium options are highly profitable for Toyota. We will see that in a year or so when the market is more saturated and instead of MSRP you can get $3k off. The 3k are from the profits on the $6k that the TRD off road premium costs. That gives the customer the strategy: buy now and pay Toyotas profits or wait and recoup some of that money by getting a discount. Jeep did exactly that kind of price gouging and it backfired and now you can get vehicles with 10k off.

Unfortunately right now there are only a few off road style cars like this so Toyota can set a high price. In the midsize cross over SUV market there are so many good cars that you get premium features for much less due to the insane competition.

I will likely eat up some of the Toyota premium costs. But I will wait 6 more months and hope for better availability and maybe 1-2 k off MSRP. Unless some different comparable truck gets released or the market stays tight and I have to pay.

Jeep, Ford, GM, it always backfires. Toyota is a strong brand no doubt. Maybe they can pull it off. Maybe I'll just wait 9 months and buy an SR5 for 40k.