How Are Toyota's Discounting Plans Going To Hurt YOUR Resale Value?

How Are Toyota's Discounting Plans Going To Hurt YOUR Resale Value?
Toyota's woes and competitors' efforts to capitalize on them are creating sweet deals for new car buyers.

As Toyota tries to reverse a 12.4% sales decline through February, it is offering 0% financing, cash rebates and low-priced lease deals on several of its models, as well as free maintenance for existing customers.

"Most people are caught off-guard with how good of a deal you can get right now," said Craig Muran, general manager at McInerney Toyota in Clinton Township.

Through early March, Toyota's incentives helped boost sales 41% from a year earlier. GM, Chrysler and Ford have been offering 0% loans on many models to sustain sales momentum and lure disaffected Toyota owners.

Analysts warn the Detroit Three must be disciplined in their discount offers. Incentives eat at the bottom line, erode brand value and lead customers to expect bigger discounts, all contributing factors to last year's bankruptcies at GM and Chrysler.





Geneva Motor Show Photo Gallery

2011 Hyundai Sonata Launch Photo Gallery

2010 Rolls-Royce Ghost Launch Photo Gallery

2010 Chicago Auto Show Photo Gallery

AutoSpies.com Photo Galleries

If you want to see your photos running on our homepage photo ticker, be sure to upload your photos on the go by sending them to Mobile@AutoSpies.com

Share on Facebook



Read Article

fatandsassyfatandsassy - 3/17/2010 11:08:06 AM
0 Boost
I have some ocean front land for sale cheap in Tennessee if any of those Toyota buyers would like to contact me.


Agent009Agent009 - 3/17/2010 12:01:14 PM
-4 Boost
The big picture?

Well Toyota discounts, so now GM, Ford, And Chrysler have to, then the rest have to keep up by doing the same. Soon entry level luxury sales dip, and then you get subsidized leases at a artificially low rates. Then you lower the standards for loans and it all sounds just like the mess we just got out of.


91z4me91z4me - 3/17/2010 12:53:43 PM
+4 Boost
They aren't I don't own a Toyota.


Agent009Agent009 - 3/17/2010 1:20:35 PM
-2 Boost
The above scenario basically shows it will affect you in some way.


ShredmoShredmo - 3/17/2010 3:41:09 PM
+2 Boost
009, if Toyota was gaining market share and offering these incentives, you would have a case.


91z4me91z4me - 3/17/2010 9:32:13 PM
+3 Boost
009, I disagree with the assumption that GM, Ford, Chrysler or any other automaker will HAVE to do incentives just because Toyota is.

Did Toyota or Honda do incentives when GM and Ford had customers constantly looking for the next round of incentives (~5 years ago)?


carguy68carguy68 - 3/17/2010 1:00:09 PM
+1 Boost
The resale value will drop to what a toyota is really worth!


WhelanWhelan - 3/17/2010 1:47:43 PM
-1 Boost
It won't affect me at all. Actually the value of my car has gone up. the 2003-2008 Toyota Matrix with the AWD option (me having an XR AWD) means that I have DBC (Drive By Cable). No computer messing with my throttle position, no worries, no recalls.


theoptimisticpessimisttheoptimisticpessimist - 3/17/2010 4:20:31 PM
+1 Boost
Yes.


izfuneyizfuney - 3/17/2010 5:14:22 PM
+2 Boost
Man.. here i was ready to reply at the lack of economic basics and trite analysis by the writer, wondering which magazine had let its standards drop so much that they were hiring 5th grade dropouts.....

Then i noticed it was 009 ... yawn .
Copyright 2026 AutoSpies.com, LLC