Toyota and Honda Incentives War May be Next Year
Just when things were looking good for Toyota and Honda, floods in Thailand have knocked their production back again.
A string of bad luck this year starting with the March Japan earthquake has caused severe part shortages, causing inventory levels to plummet.
With fewer inventory to choose from, consumers have either held off buying or have chosen competing brands, hurting sales considerably.
Toyota and Honda had been gearing up for a year-end incentives war, but that's out of the question now.
Honda has had to cut production in half and delay the release of the 2012 Honda CR-V by several weeks.
Both manufacturers won't be back to full production again until early next year.
The good news: If you don't mind waiting, the incentives war looks like it may occur in the first quarter of next year - and this one may be even bigger than what was planned for this year.
Toyota and Honda are desperate to gain back market share, and the longer they suffer with shortages, the more it will take to win back customers.
We won't be surprised if they offer the largest incentives in their history sometime early next year.
But, keep in mind no one knows for sure what's in store. You can still get a good deal right now, but if you have the luxury of waiting, we recommend doing so.
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
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.
Latest Weekly Car Buying Tips RSS Feed