Usable items removed under warranty.

What does the dealer do with usable items removed or returned under warranty?

They "could" reuse or resell it.

 

They have to send it back to Toyota.

 

If it was useable, why would it be replaced under warranty?
Most parts are returned to Toyota or sometimes if its something not worth returning, the dealer is instructed to dispose of it.
Once Toyota has it back, they have a team that inspects it and determines cause of failure, which leads to TSBs or recalls. If the item can be rebuilt it will be done and sold as a reman part.

 

Some people are super picky.

I returned a bedmat with an air bubble on the top section. Usable but I didn't pay for the bubble.

Let's also say, a headlight with moisture in it... Doubt they would reseal it and resell or send back to a dealer (I hope not).

 

The bed mat could be sold at a discount or even like we do sometimes, an employee may be able to get it as a misc. part and they can sell it to him for a few dollars.
The headlight scenario would probably be a case where pics were sent to corporate and the dealer was told to dispose of the light. They may ask for it back for research purposes depending on how many issues like that case they have had.

 

I work for a honda dealer. We have to hold the warranty parts for a certain time period, in cause Warranty Parts Inspection wants them for evaluation.
Then we are supposed to destroy them.