Toyota Offering Unusual Financing Incentives

Toyota has recently posted some of its worst sales in nearly 20 years. But after steep sales declines, Toyota is uncharacteristically offering 0% percent financing on 11 models within its lineup. Toyota supports the financing incentive, saying that they have the inventory of high-demand models such as the Toyota Prius, along with the capacity to offer such an incentive via Toyota Financial Services.

The new incentive plan is surprisingly aggressive for Toyota, and is perhaps more characteristic of domestic automakers. In September, the automaker suffered a 32 percent decline in sales, which is the largest dip in sales since 1987 and perhaps is an unusual time to offer such aggressive financing incentives. In fact, according to Yakima Toyota, the automaker has rarely offered nationwide incentives programs, preferring regionally-targeted incentive programs instead. The last time Toyota offered 0% financing was back in 2001.

Vehicles that Toyota sells high volumes of, such as the fuel efficient Corolla, also receive the incentive. Customers with good credit like many visiting Toyota dealer Minneapolis can take advantage of the incentive on many of Toyota’s popular models, and even on vehicles that have been selling slower thanks to rising gas prices, such as the Toyota Tundra and Sequoia.

Officials at Toyota have stressed that many of their customers have higher credit scores, and don’t deal in subprime, but that's not always the case as those seeking bad credit auto loans Moses Lake see plenty of customers with less than adequate credit. The incentive is Toyota’s way of reminding potential car buyers that auto credit is still available, even despite the credit crunch. With sales on shaky ground at many dealerships, other profit centers are becoming important such as Toyota parts to make up for the lack of new car sales. Although the incentive program is unusual, analysts at JD Power suspect that the incentive will be successful for Toyota, and will help to drive additional sales.

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