Honda Incentives Hit Record High,Toyota May Follow
This was the third month in a row where Honda raised incentives spending with last month being a record high
On the flip-side, domestic manufacturers such as GM and Chrysler may be cutting incentives spending in future months due to a decrease in production.
Toyota, on the other hand, is in a tough situation which may force it to follow Honda's lead and increase incentives.
Toyota spent an average of $1,362 on incentives per vehicle sold in June. We predict this figure will creep up in the coming months.
Toyota built several manufacturing plants in the US over the last few years on the false assumption sales would be healthy. That hasn't turned out to be the case.
Unlike GM and Chrysler, Toyota can't just shut down these plants. They don't want to lay off their workers since that would ruin Toyota's image as a generous US employer.
So it looks like Toyota is going to be producing a lot more cars than it can sell. The only way to move these cars is to raise incentives. Look out for higher rebates and better financing deals from Toyota over the next several months.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid