Toyota & Incentives: Perfect Together

In a bid to recapture lost mojo, Toyota has raised its incentive offerings in hopes of winning back lost market share. The 2010 Toyota Prius is one vehicle expected to do its part to advance sales.

Anyone who has shopped for new cars over the past two decades probably knows that when it comes to discounting, Toyota and Honda are the most difficult vehicles to talk down in price. In fact, there have been times when a highly desirable model was sold for above sticker price, demonstrating the appeal of Japan’s two most popular brands.

Big Losses Posted By Toyota, Honda

Both automakers have been taking it on the chin since last fall’s stock market collapse, posting sales losses on par with what GM, Ford, Chrysler and Nissan have also been experiencing. Toyota in particular has been seeing demand for its vehicles plummet, so much so, that sales dropped by 41% in April 2009 v. April 2008. Honda recovered somewhat, experiencing a drop of “just” 25% for the same period.

Lately, both automakers have been offering incentives, but Toyota has been much more aggressive in a bid to drum up sales and recapture lost market share. For May, Toyota has rolled out its “Perfect Timing” sales campaign, one where the automaker will offer more customer cash, drop the interest rate on consumer loans as well as push leases.

Losing U.S. Market Share

Toyota’s push comes as the automaker fell behind both Chevrolet and Ford in April as the Toyota brand lost 1.5% of its U.S. market share. In addition to offering incentives, Toyota will increase production of the Camry — America’s best selling car — as well as its popular compact SUV, the RAV4.

Incentives on new Toyotas appear to be regionally offered, meaning that discounts and special offers may vary from one dealership to the next. If you are shopping for a new Toyota you may want to contact several dealers to compare offers.

All New Prius Arriving

Despite gas prices hovering around a relatively low $2/gallon for regular fuel, Toyota is expecting that demand for its third generation Prius hybrid will help bolster sales when it is introduced on May 17th. That model will be offered with a base retail price of $21,000 and five trim levels. Initially, Toyota had mentioned a higher price for the Prius, but when Honda rolled out its Insight hybrid for under $20,000, Toyota countered with a lower price.

The Prius is larger, roomier and heavier than the Insight but returns better fuel economy numbers — 51 mpg city and 48 mpg highway. The Honda Insight delivers 40 mpg city and 43 mpg highway. Both vehicles may be eligible for federal and/or state rebates as well.

Photo courtesy of Toyota Motor Sales, U.S.A., Inc.

Related: Toyota Fights Back Against Honda Insight Pricing