Scion targets new generation of car buyers

Julie Harju

It’s not about power, money or control. Well, maybe it is. At any rate, the generation called “Generation Y” or the “echo boomers” has it.

The world wants to sell to people aged 18-25, to start trends and movements and catch them in their promotional webs. That’s part of the appeal of newest car company, Scion, a branch of Toyota.

Scion designed its cars, but its sales, options and ideals to fit the younger buyers. The three Scion models xA, xB and tC are styled to be a little different, a little unique and to make its drivers stand out, befitting the trend. It seems that wallflower is out, and center stage is in.

Besides the standard styling, the part of Scion that the company is really proud of is the process.

“It’s set up so they can discover it for themselves, that’s the idea,” said Jay Uppal, head of sales at Folsom Lake Scion.

Uppal explained that many customers look up Scion on the Internet, find the model they like and then customize their options. The standard options are pretty impressive, but customers can add their own accessories, over 40 to choose from.

In an atmosphere of instant gratification, many customers enjoy clicking a mouse and ordering their own unique accessories, and then driving to the dealership and finding the very car they designed waiting for them to pick up. Once the customer has chosen their model and accessories, the sales aspect is also geared toward making the Generation Y crowd feel comfortable.

Uppal explained that studies showed most customers hate negotiating, so the Scion prices are all set, with the xA starting at about $13,000 to the tC starting at about $17,000.

“If you don’t like the price on the window, this car probably isn’t for you,” Uppal said.

The sales representatives don’t make money by selling extra options or warranties — Uppal said the mark up on Scions vary from about $400 to $800 at most, so it’s not a high pressure situation.

“To give you an idea, a Land Rover has about a $7,000 mark up,” Uppal said.

It doesn’t take a brain surgeon to figure out that Scion isn’t a huge money making venture. Uppal said that the company more or less breaks even on the Scions, but the idea is to bring customers for life – create young customers who are loyal to the Toyota brand name.

Even the Scion sales office is designed differently – more like a lounge than a cubicle.

Uppal said that customers frequently come in to surf the site on one of the flat screen computers, or thumb through the glossy, magazine-like promotional pamphlet, with popular artists like Kayne West playing in the background. Rather than spending money promoting Scion in the traditional ways, the company has chosen another different tactic – hanging out.

Scion gets involved in local and national events. Club openings, concerts, art shows, release parties, sporting events – whatever’s going on in the street, Scion’s tire tracks are all over it.