Toyota Starts Its Own Used-Car Program

Looking to protect its dealers from the encroachment of used-car superstore chains, Toyota Motor Corp. on Wednesday launched its own version of a certified used-car program for the United States.

Toyota said it will put used 1992-96 Toyota vehicles with less than 55,000 miles through an inspection program, and back that up with what it called the strongest used-car warranty program in the industry.

Included in the Toyota warranty is a six-year, 100,000-mile powertrain coverage starting from the date when the vehicle was sold as new.

“Our certification program is designed to eliminate the anxiety often associated with the purchase of a used vehicle,” Dave Illingworth, general manager of the Toyota division of Toyota Motor Sales U.S.A., said in a statement.

Toyota’s announcement follows a similar move by General Motors Corp.’s Saturn division. Saturn said last month it planned a major marketing push in which it will take its haggle-free sales concept into the used-car business.

The Toyota news also came one day after nine auto dealers from across the country became the latest to form a used-car superstore chain.

Toyota said the certification program was a recognititon of what analysts estimate is a $100-billion market for used cars and trucks in the United States.

“The used-vehicle market has grown substantially over the past few years, creating a whole new category of buyers,” Illingworth said.

At the same time, Yale Gieszl, executive vice president of Toyota’s U.S. unit, said the Japanese auto maker was not concerned about the fast growth of mega-store used-vehicle chains such as CarMax from Circuit Cities Stores Inc.