When it comes to automakers and incentives, names such as Ford, Chrysler, General Motors, Hyundai, Mitsubishi, and Volkswagen are frequently mentioned, car companies who typically need some help 
moving their many different models. Honda and Toyota are at the opposite side of the spectrum, offering few if any discounts or financing incentives to clear inventory. Until now.
Incentives On Eleven Models
In a break with past practice, Toyota is now offering financing incentives on eleven different models, vehicles which all sport the Toyota badge. Not included in the mix were the company’s Scion and Lexus models, at least for now. Also absent from the offer were a pair of hot sellers: the subcompact Yaris and the hybrid Prius.
The financing incentives being offered by Toyota is for loan terms ranging from 36 to 60 months with zero percent interest. The Toyota models qualifying for this offer are: Matrix, Corolla, Camry, RAV4, Highlander, FJ Cruiser, 4Runner, Sequoia, Sienna, Tacoma and Tundra. Put into place earlier this month, the financing deal runs through November 3rd.
Clearing Inventory and New Vehicle Financing
“Not only do we have the inventory of today’s sought after fuel-efficient models, but we have the capacity through Toyota Financial Services to finance or lease them,” said Toyota Division General Manager Bob Carter.
And, it is the financial arm of the automaker that is being tapped to provide the deal to Toyota customers. As other automakers struggle to hold onto market share and provide the funds necessary to hold loans or offer leases, Toyota Financial finds itself sitting on a heap of cash, ready to step in to make this unprecedented offer.
Other Manufacturers Are Joining In
Toyota isn’t alone feeling the frigid breeze of a sales slump. Across the board average sales slumped by 26.6% in September 2008 over the same period a year earlier, with most manufacturers experiencing a double digit sales decline year to date. Just recently, GM ended its “employee pricing” initiative, but has replaced it with cash back and/or zero percent financing on a number of its own models too.
Chrysler recently raised prices for 2009 models, but discounts on most vehicles will cancel out those gains. Ford, Volkswagen, Suzuki, Mazda, Kia, and Nissan have each been offering incentives lately, offers which will only continue to grow as the year comes to a close.
So, although the Toyota move is certainly an unusual one, business certainly isn’t necessitating strong action on the part of the world’s top volume automaker.
