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Automotive Consumer
AUTOS: Toyota Incentives Spur Buyer Interest
Zero-percent financing, lease deals have boosted intent to buy brand, researchers find.
SPEED Staff  |  Posted March 04, 2010   Santa Monica, CA.
Consumer interest in Toyota vehicles, such as the RAV4, has risen since the automaker announced its incentives program. Photo: Toyota)
Toyota’s announcement of zero-percent financing and special lease deals generated nearly a 40 percent spike in purchase intent by visitors to Edmunds.com, according to researchers on the automotive website.

The automaker, beleaguered by daunting safety recalls and slipping public perceptions, announced the incentive program on Tuesday in an attempt to win back lost customers. The Edmunds.com study shows it may be having strong effect.

In January, Toyota’s purchase intent averaged just over 13 percent and then fell to a 9.7 percent low as a result of the recall announcements. On March 1, Toyota purchase intent had recovered to 13 percent. On March 2, when the incentives program was announced, Toyota purchase intent soared to 18 percent, a 14-month high.

Purchase intent is determined by the activity of perspective new-vehicle buyers doing research on the Edmunds.com site.

Slightly later announcements of zero-percent financing by Chrysler and General Motors didn’t have the same effect. In fact, Chrysler purchase intent decreased from 3.3 percent to 2.9 percent and GM purchase intent rose just slightly from 12.6 percent to 12.7 percent.

“Because of the Toyota recall, people have been closely watching the company’s moves, and many were ready to take action upon hearing the announcement of this highly-anticipated incentives program,” said Edmunds.com senior analyst David Tompkins. “Chrysler and GM didn’t get quite as much attention for two main reasons: historically … followers never get the same level of attention that the initiators do, and, secondly, this type of announcement is far more rare for Toyota.”

George Kang, senior analyst at Edmunds.com said Toyota is fighting to regain lost ground.

“The Toyota recall saga allowed other automakers to snag some market share, and now Toyota wants it back,” Kang said. “Despite their ongoing challenges, the company still has plenty of brand strength and consumer confidence.”

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