Toyota Motor Corp. is upping the ante in the full-size truck market by offering new incentives.
The incentives offered through July 31 include a choice of zero-percent financing for five years, rebates of up to $3,500, or reductions of $500 on down payments on three-year leases. The 2007 Tundra, Toyota's first true full-size truck, was launched in February.
In May, Toyota sold 17,727 Tundras, more than double the number for the previous model. But Toyota is still well behind Ford Motor Co., General Motors Corp. and the Chrysler Group's Dodge. The Chevrolet Silverado topped May full-size truck sales at 63,790.
The truck market has been hurt by rising gas prices and slowing activity in new home construction. Overall sales of full-size pickups are down 5.5% so far this year.
Toyota decided to use incentives to keep momentum going for the new Tundra, said Toyota spokesman Bill Kwong. “It's a very competitive market, and the customer is always looking for a good deal.”
The Tundra's incentives put it in line with the current $3,000 customer cash offered by Ford, according to Edmunds.com. Dodge is offering double that amount in combined customer and bonus cash. GM has the lowest incentives, with $1,500 customer cash on the Silverado.
Incentives for the full-size truck market are not unusual, said Jesse Toprak, executive director of industry analysis for Edmunds.com. But it is unusual for Toyota to use incentives on a new or recently redesigned vehicle, he said.
Toyota is under pressure to hit its sales target of 200,000 Tundras this year and ensure the truck is taken seriously by hardcore truck buyers, Toprak said. “They have a lot of money invested in the development of this product and in the marketing of the Tundra,” he said.
