Toyota announces 0% financing on 11 models

Posted Fri Oct 3 2008 6:34 PM by Ralph Hanson

Toyota's incentive offer could be brilliant strategy or desperate maneuver

After universally sour September sales, the car industry is reeling despite the longer-term boon that the $25 billion loan deal may provide. Weak credit is believed to be the primary culprit of the especially low sales figures, and so Toyota is taking steps to combat that problem by offering its own 0% financing incentive on 11 select models in the U.S.

Following in the footsteps of its Detroit-based counterparts, Toyota has somewhat uncharacteristically bowed to the pressure of the market and sweetened its deals with the financing offer. The move is one that smacks of necessity, however, as the company faced a 32% sales decline last month. The 0% deal marks the first time in almost 7 years Toyota has made such an offer.

Making finance-based incentive offers in the current market may seem a bit odd, but the company's Toyota Motor Credit financing business is surprisingly strong despite the faltering credit market. Using that strength to leverage more sales at a time when many carmakers can do little or nothing along similar lines could yield a competitive advantage, turning the seemingly desperate incentive into a strong position. The company's attitude in making the offer is befittingly aggressive, though it's only speculation as to what may underlie that aggressiveness at this point.

The 11 cars, SUVs, pickups and crossovers that will be able to take advantage of the offer include:

Corolla
Matrix
Camry
RAV4
Highlander
FJ Cruiser
4Runner
Sequoia
Sienna
Tacoma
Tundra

Reader Comments

Fri Oct 3 2008 7:00 PM
www.mywheelsonwalls.com says

I'm stumped here!! A lower interest rate on a loan usually means the customers credit rating will need to be higher. The current credit crunch in the U.S., is going to make this program harder to buy the car than easier.

If you want to push some metal across the sales room floor you'll need to drop prices and drop your credit worthiness rating. Ofcourse when the latter was applied to housing the current situation was the result.

Ulitmately times are tough and I would guess to say that time is going to be the cure here. In other words, who ever has the most cash reserves wins, regardless if what your selling is any good !!!
Sat Oct 4 2008 4:28 PM
HECTOR says

I had plans to buy a used car at the end of the year and I'm putting them on hold, watching and waiting to see what happens with the current crisis.

It's a bad, bad sign that Toyota of all manufacturers has to resort to this kind of thing to sell cars. Considering Toyota is a major proponent of the *why am I blinding you with these incredibly bright daytime running lights? F*CK YOU! That's why* school of thought I hope the fall flat on their faces.

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