Toyota Incentives Should Remain High for Months
In an effort to increase sales following its recall fiasco, Toyota began offering its largest incentives in recent history beginning in March.
Now analyst believe Toyota may have to keep incentives high until at least end of summer and quite possibly until the end of the year. If they don't, Toyota risks a sales meltdown again.
Starting March 1st, Toyota began offering 0% financing, low-rate lease deals, and cash rebates on certain models. Sales have reportedly increased as much as 70% compared to last month.
Now Toyota is in a tough spot. Historically, they've done well without the need for incentives, but consumers are now expecting it. The longer they keep incentives high, the more damage will be done to the brand and to its resale values.
Generally, this is good news for car buyers (especially if you intend to keep the car for more than 5 years).
Toyota has been forced to offer large incentives on its 2010 vehicles, but when the 2011 models come out, Toyota will likely try to ween consumers off the spiffs. In the meantime, you should have several months to get a great deal on Toyota vehicles. It's an opportunity that doesn't come along very often.
My Recommendation for Car ShoppersTrueCar No-Haggle, Edmunds Price Promise, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
California Residents - Important:There is a new online car buying service called Roadster, available only to California residents, which I highly recommend you try - especially if you hate the stress of haggling with a car salesman. They provide an expert concierge who negotiates the price of the car and delivers it to your home with zero hassle - you never have to interact with a dealership. Here is my in-depth review of Roadster and why I recommend it.
- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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