Japanese Price Wars: Honda counters Toyota with largest lease deals ever
03-26-10, 06:29 PM
#1
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Japanese Price Wars: Honda counters Toyota with largest lease deals ever
http://www.autoblog.com/2010/03/26/j...gest-lease-de/
Toyota commands about a 15.5-percent share of the U.S. market so far this year. That's the same share it had a year ago, before its recall marathon began. Analysts studying the market have suggested that Japanes automaker's brand perception hasn't taken that big of a hit with the wider public, but Toyota has also dipped heavily into incentives and price dropping in order to keep moving its metal. Those are two corners of the retail world you don't usually find Toyota, and the move has apparently dragged Honda with it.
Honda is the brand most cross-shopped against Toyota, so what its rival does to draw traffic must be closely watched and, in this case, matched. The Feature Special Lease deal Honda has just introduced is good for nearly every model, eliminates the down payment, security deposit and first month's payment, and waives all lease fees. The program runs until May 3. On top of that Honda has 0.9-, 1.9-, and 2.9-percent APR financing deals. Between them, they cover Honda's entire model line.
Honda's lease program runs until May 3, a month longer than Toyota's. Now that Toyota knows it's going to be a long battle to hold its position, we'll be interested to see how what kind of fortitude and endurance the company has. Honda probably will be as well...
[Source: L.A. Times via The Car Connection | Image: Scott Olson/Getty ]
Toyota commands about a 15.5-percent share of the U.S. market so far this year. That's the same share it had a year ago, before its recall marathon began. Analysts studying the market have suggested that Japanes automaker's brand perception hasn't taken that big of a hit with the wider public, but Toyota has also dipped heavily into incentives and price dropping in order to keep moving its metal. Those are two corners of the retail world you don't usually find Toyota, and the move has apparently dragged Honda with it.
Honda is the brand most cross-shopped against Toyota, so what its rival does to draw traffic must be closely watched and, in this case, matched. The Feature Special Lease deal Honda has just introduced is good for nearly every model, eliminates the down payment, security deposit and first month's payment, and waives all lease fees. The program runs until May 3. On top of that Honda has 0.9-, 1.9-, and 2.9-percent APR financing deals. Between them, they cover Honda's entire model line.
Honda's lease program runs until May 3, a month longer than Toyota's. Now that Toyota knows it's going to be a long battle to hold its position, we'll be interested to see how what kind of fortitude and endurance the company has. Honda probably will be as well...
[Source: L.A. Times via The Car Connection | Image: Scott Olson/Getty ]
03-27-10, 10:43 AM
#4
Lexus Fanatic
Originally Posted by 1SICKLEX
The Feature Special Lease deal Honda has just introduced is good for nearly every model, eliminates the down payment, security deposit and first month's payment, and waives all lease fees. The program runs until May 3. On top of that Honda has 0.9-, 1.9-, and 2.9-percent APR financing deals. Between them, they cover Honda's entire model line.
You should get a pretty good trade-in for that GS hybrid.
03-27-10, 11:57 AM
#6
My friend is a Honda Salesman, I was chatting with him, and ask: " since Toyota has recalls and everyone is scared of driving Toyota, does it make Honda has more business? "
Surprisingly he replied, " no, even worse sales, since now everyone thinks they can bargain on the price of Toyota with the dealers since there are recalls, and Toyota is offering 0% interest on most models!"
Surprisingly he replied, " no, even worse sales, since now everyone thinks they can bargain on the price of Toyota with the dealers since there are recalls, and Toyota is offering 0% interest on most models!"
03-27-10, 12:57 PM
#7
Lexus Test Driver
My friend is a Honda Salesman, I was chatting with him, and ask: " since Toyota has recalls and everyone is scared of driving Toyota, does it make Honda has more business? "
Surprisingly he replied, " no, even worse sales, since now everyone thinks they can bargain on the price of Toyota with the dealers since there are recalls, and Toyota is offering 0% interest on most models!"
Surprisingly he replied, " no, even worse sales, since now everyone thinks they can bargain on the price of Toyota with the dealers since there are recalls, and Toyota is offering 0% interest on most models!"
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03-27-10, 01:11 PM
#8
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I recently leased a 2010 Honda Accord and the incentives were good at that time too, but probably not as good now. Proves you can never wait long enough, always a better deal out there. By the way I went through Autonation Direct and their pricing was significantly better than their own local dealers.
I was shopping for a Toyota at the time too, but that was when they stopped production and although I still believe in Toyota, definitely at that time it left doubts in my mind to lease a Toyota and wait for a fix.
On another note, Toyota is still king, but in this 4 door sedan segment, the Camry is still not very appealing. The other choices of the Avalon & Corolla are even worse.
I was shopping for a Toyota at the time too, but that was when they stopped production and although I still believe in Toyota, definitely at that time it left doubts in my mind to lease a Toyota and wait for a fix.
On another note, Toyota is still king, but in this 4 door sedan segment, the Camry is still not very appealing. The other choices of the Avalon & Corolla are even worse.
03-27-10, 10:49 PM
#9
Lexus Fanatic
My friend is a Honda Salesman, I was chatting with him, and ask: " since Toyota has recalls and everyone is scared of driving Toyota, does it make Honda has more business? "
Surprisingly he replied, " no, even worse sales, since now everyone thinks they can bargain on the price of Toyota with the dealers since there are recalls, and Toyota is offering 0% interest on most models!"
Surprisingly he replied, " no, even worse sales, since now everyone thinks they can bargain on the price of Toyota with the dealers since there are recalls, and Toyota is offering 0% interest on most models!"
A little off-topic, maybe, but an important point that I think needs to be made.
03-28-10, 01:01 PM
#10
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Toyota's cars - especially the sedans - are squishy, overpriced, boring, ugly, milquetoast-mobiles sold by unscrupulous, used-car-sales-mentality dealers. I will never purchase a Toyota for any reason at any price.
That said, I still have respect for Lexus.
That said, I still have respect for Lexus.
03-28-10, 01:13 PM
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03-28-10, 01:17 PM
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03-28-10, 02:03 PM
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Or did you miss what Honda themselves said?
Originally Posted by ;5200286
http://finance.yahoo.com/news/Honda-....html?x=0&.v=1
Blessing or a curse?
Honda may also benefit from the global recall of millions of vehicles by larger rival Toyota Motor Corp., particularly in the key U.S. market, although Kondo -- and analysts -- said the opposite could also happen.
"There's a chance that the image of all Japanese cars will worsen in North America and elsewhere," said Mitsushige Akino, chief fund manager at Akiyoshi Investment Management. "We just don't know. There are things we still can't predict."
Honda had to initiate a recall of its own last week, saying it would recall some 646,000 of its Fit/Jazz and City models globally due to a faulty window switch after a child died when fire broke out in a car last year.
"Toyota is the front-runner representing Japanese cars," Honda's Kondo said. "In that sense, we're somewhat worried that there may be a knock-on effect on other Japanese brands, but we'll need a little more time to gauge any impact."
Blessing or a curse?
Honda may also benefit from the global recall of millions of vehicles by larger rival Toyota Motor Corp., particularly in the key U.S. market, although Kondo -- and analysts -- said the opposite could also happen.
"There's a chance that the image of all Japanese cars will worsen in North America and elsewhere," said Mitsushige Akino, chief fund manager at Akiyoshi Investment Management. "We just don't know. There are things we still can't predict."
Honda had to initiate a recall of its own last week, saying it would recall some 646,000 of its Fit/Jazz and City models globally due to a faulty window switch after a child died when fire broke out in a car last year.
"Toyota is the front-runner representing Japanese cars," Honda's Kondo said. "In that sense, we're somewhat worried that there may be a knock-on effect on other Japanese brands, but we'll need a little more time to gauge any impact."
03-28-10, 04:10 PM
#14
Lexus Champion
very classy.Back on topic, as we all know that Toyota will fight back one way or another. I'm thinking about trade my IS in for the Prius because the wife likes it so much.
03-28-10, 08:05 PM
#15
given the pricing war between honda and toyota, blacksc400 makes a valid point. people are trying to counteract the recall of toyota with as much of a price knock as possible. i joined my toyota salesman friend for lunch a few weeks back and he clearly indicated that potential buyers, if not getting a deeper discount with honda because of toyota's recall, will more than likely purchase a toyota vehicle despite the news surrounding it.
personally, 0% for 60 months is a fantastic deal, no matter what brand you buy. i really wish there was a sort of retroactive plan for those toyota vehicles purchased within the last year affected by the recall. we got a great deal on my sister's corolla s, and thats with the cash for clunkers program.
personally, 0% for 60 months is a fantastic deal, no matter what brand you buy. i really wish there was a sort of retroactive plan for those toyota vehicles purchased within the last year affected by the recall. we got a great deal on my sister's corolla s, and thats with the cash for clunkers program.
