Deep Discounts May Boost Toyota Sales By 80% In March

Hefty incentives, spurred by Toyota with others following, are forecasted to send the 0% financing - 213.JPG Seasonally Adjusted Annual Rate of vehicle sales to 12.4 million this month from February's 10.3 million, according to Edmunds.com.

Toyota will get a big bang for its incentives bucks with sales up 80 percent from February, Edmunds.com forecasts. And Ford is expected to outsell GM again in March as it did in February.

"Although this SAAR sounds promising, it's too early to wave the flag and say that the economy has turned the corner," Edmunds.com CEO Jeremy Anwyl said. "Incentives drove sales this month, but those incentives were defensive moves by Toyota and its competitors, and are unlikely to last because inventories are simply not high enough to justify them."

Toyota kicked off March with a host of incentives, including the always-popular zero-percent financing for up to 72 months and discounted leases. Others followed suit.





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iLexus - 3/25/2010 5:47:58 PM

+1 Boost

March of what year? 2011?

g2ok - 3/25/2010 7:02:47 PM

-3 Boost

The 0% rate is somewhat a gimmick by Toyota because they calculate that you are paying the price they set on the vehicle, not the negotiated price. You pay the interest actually as principle. Wake-up America !

I think Toyota makes a great product, but it would be better for them to offer an improved warranty like Hyundai Assurance to build confidence with customers. The 0% is to placate dealers not customers.

Agent009 - 3/26/2010 8:47:38 AM

-4 Boost

Badgewhore- Toyota isn't guilty of anything really. The problem really is they were one of the few that never really chose this strategy.

Yes it moves metal, which is what the need to do. However it is a severe negative on resale since the avg purchase price is reduced. Exactly why American resale values suck.

Now if Toyota chooses to expand fleet sales to reduce inventories, then you have a real problem as well.

Who would have thought that Toyota of all companies could have been crippled so quickly?

Who also would have thought that these issues did so, were self induced?

Right now:

Reliability is perceived to be on par with everyone else (no advantage)
Resale has taken a hit to normal levels (no advantage)
Company reputation has taken a severe hit (detriment)

With the main advantages nullified, why would anyone consider a Toyota?

Personally I favor extended warranties or included maintenance or discounted sales.

wins555 - 3/26/2010 12:58:51 AM

+1 Boost

O% interest first then extended warranty. One or the other only. Companies will never offer the two incentives at the same time unless they are really desperate.

ceric - 3/26/2010 3:04:44 AM

-1 Boost

Right.
A 14yr-old Civic with 230K miles is worth $3000...
Show me the ads, please.

kpaxx - 3/26/2010 8:13:37 AM

-1 Boost

No sense on having a discount on a car which is known to be unsafe. You could discount it to zero dollars and zero percent financing and I would still not risk my life in one of those death traps that toyota sells!

PerformanceGuy - 3/26/2010 1:11:11 PM

+2 Boost

This will temporarily boost sales, but as far as the long run, the sales will bottom back out. The damage has already been done.

bfghemicuda - 3/27/2010 1:35:42 AM

+1 Boost

Operative word is MAY. This is pure speculation.