Up to September, Toyota was weathering the new sales storm with relative grace. Sales volume has been dropping, but market share never declined the way it did last month. To stop the bleeding, ToMoCo is announcing a zero-percent interest promotion, hoping to lure in showroom traffic in a tight credit market. Of course luring in traffic and offering truly great deals aren’t one and the same. Toyota’s most popular and fuel-efficient cars are conspicuously absent from the list of qualifying nameplates, which includes Matrix, Corolla, Camry, RAV4, Highlander, FJ Cruiser, 4Runner, Sequoia, Sienna, Tacoma and Tundra. Further limiting the impact of this promotion is the increasing rarity of “well-qualified buyers.” Automotive News (sub) says one reason Toyota is reaching for incentives is the relative success of GM’s “Employee Pricing For All” deal, which is credited with helping the General regain ground against Toyota in September. Ultimately, Toyota may be the only automaker with the financial resources to offer low interest deals on so many vehicles, including the compact Corolla and Matrix. “And at the end of the day,” says Christopher Richter, an auto analyst with CLSA Asia-Pacific Markets “I don’t think the costs to Toyota will be that great.” There’s no doubt that showroom traffic should increase, and even if sales don’t pick up dramatically, the offer places a foot on the throats of Toyota’s value-positioned American competitors. Stay tuned for more details when October sales numbers come out.
To be fair, the Corolla and Matrix are pretty fuel efficient. The “most popular and fuel-efficient cars are conspicuously absent” — so just the Yaris?
I was thinking Yaris, Prius and other hybrids, but the point is well taken. Perhaps “Some of Toyota’s most popular and fuel-efficient cars are conspicuously absent” would have been a better way to phrase that.
There is a Toyota radio ad airing in So. Cal. that has a woman saying, “I really wanted that hot new Highlander, but I was upside down in my car. I called xxx dealer and he said he could help me and I drove off yesterday in my HOT new Highlander.”
Isn’t this how we got into this mess? Giving credit to snapperheads who buy new cars more often than they can afford.
Oh, what a feeling.
jkross22: “I really wanted that hot new Highlander, but I was upside down in my car. I called xxx dealer and he said he could help me and I drove off yesterday in my HOT new Highlander.”
Nice. Bill Heard would be proud.
No worries. I bow my head b/c I didn’t even think of the Prius when reading that (or the other hybrid versions).
“I don’t think the costs to Toyota will be that great.”
But the cost to the 2.8 could well be. It’ll be just that much harder to sell something now.
Well, is Toyota going for the jugular, or are they putting a foot in the throat? Or, do you mean they’re putting their foot ON the jugular? Or, maybe they’re wearing Ninja boots with a built in knife-blade with which to cut the jugular on a nifty roundhouse kick?
People might not be aware that TTAC’s TrueDelta supplied pricing also does payments. To see how much you save with zero percent, compare a vehicle for itself, then on the bottom of the results page select zero percent financing for one and the regular rate for the other.
I’ll get the new Toyota incentives in there now.
Sounds like the heads of industry are not that worried about the economy going in the tank. In a “crisis” or “depression” even today’s most credit-worthy of folks could be out of a job tomorrow.
The way Toyota dealers have you over the barrel on price negotiation, the savings on interest may not be that significant over a competitor handing out rebates like halloween candy – especially with the full-size models.
Last year at this time I picked up a new ’07 4Runner with 0% for 48 months. It may just be Toyota’s way of clearing out at the end of the model year. I wouldn’t read too much into it, yet.
2 months ago, I bought my 2008 Tundra Double-cab, 5.7 SR5. $10K of sticker = $20740. Could have gotten $4500 off w/0% but $10K worked better for me.
I chose not to do a deal for $26.5 w/0% a year ago because I’m pig-headed :) Glad I waited. Point is, big vehicles aren’t selling well. Good time to buy.
this isnt good
for Toyota to be selling like this tells me that nobody,and I mean nobody,is buying right now!
what a mess….
I think that the worst is yet to come!
Really,how many people do you know that are even thinking about buying a new car?
In my world..none.
Its going to take more than a goverment bailout to fix this mess!
And even if I wanted to buy a car right now…I would rather have the money in the bank(simple savings)than risk it!
just my 2 cents
For Toyota to take such a hit in September sales is unusual. To subsequently see Toyota emulate GM in offering 0% financing is almost shocking. They can afford to do it, and they can afford to buy all sorts of paper through Toyota Credit.
They are conveying the message that contrary to other manufacturers credit is not tight at Toyota.
Toyota has the funds to do whatever they want, whenever they want in the US market, and they signaled to other manufacturers that they removed their gloves.
Panic at Toyota? Hmmmm.
Toyota is not panicking. Sales and profits may be down, but having your profits drop from ten billion dollars a year to, say, five billion dollars a year, is a problem that the Detroit Three would love to have.
They, however, are adjusting to the shitty market. It’s understandable. Although I’m somewhat surprised that this includes the Corolla, Matrix, and Camry, and not just trucks and SUVs. Then again, sales of the Corolla/Matrix were down 24.9% (DSR) and the Camry was down 24.0% (DSR) in September, so I guess they pretty much had to.
This is the economy, stupid. Everybody took in it in the shorts last month.