Toyota Purchase Intent Soars After Incentives Announced, Edmunds.com Reports
By Michelle Krebs March 5, 2010Toyota's zero-percent financing and special lease deals generated nearly a 40-percent spike 
in purchase intent by visitors to Edmunds.com.
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. A day later, when the incentives program was announced, Toyota purchase intent soared to 18 percent -- a 14-month high.
Some of Toyota's best-sellers -- Toyota Camry, Toyota Corolla and Toyota RAV4 -- got the biggest boost from the zero-percent financing. All three models had been recalled and sales of them were temporarily halted for sticky pedals that could lead to unintended acceleration.
Purchase intent for the Toyota RAV4 compact utility skyrocketed nearly 56 percent. Purchase intent for the Camry, the nation's best-selling vehicle, soared 46 percent. Corolla purchase intent rose nearly 43 percent.
Competitors Get Less Punch
Subsequent 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; GM purchase intent rose 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," noted Edmunds.com Senior Analyst David Tompkins, PhD. "Chrysler and GM didn't get quite as much attention for two main reasons: historically -- such as in the 'Keep America Rolling' campaign in fall 2001 -- followers never get the same level of attention that the initiators do, and, second, this type of announcement is far more rare for Toyota.
Added Edmunds.com Senior Analyst George Kang: "The Toyota recall saga allowed other automakers to snag some market share, and now Toyota wants it back. Despite their ongoing challenges, the company still has plenty of brand strength and consumer confidence."
The following chart sets forth Edmunds.com's purchase intent metric for the specific brands covered by the new incentives programs:
|
|
Purchase Intent - March 1, 2010 |
Purchase Intent - March 2, 2010 |
Purchase Intent Percentage Change from March 1-2, 2010 |
|
Chrysler (including Chrysler, Dodge, Jeep and Ram) |
3.3% |
2.9% |
-12.1% |
|
General Motors |
12.6% |
12.7% |
0.8% |
|
Toyota Brand (not including Lexus and Scion) |
13.0% |
18.0% |
38.5% |
|
Buick Enclave |
16.1% |
17.6% |
9.3% |
|
Cadillac CTS |
3.2% |
3.3% |
3.1% |
|
Chevrolet Malibu |
5.5% |
5.3% |
-3.6% |
|
Chrysler Town and Country |
4.2% |
4.4% |
4.8% |
|
Dodge Ram 1500 |
7.7% |
6.5% |
-15.6% |
|
Jeep Wrangler |
17.9% |
15.3% |
-14.5% |
|
Toyota Camry |
8.9% |
13.0% |
46.1% |
|
Toyota Corolla |
6.3% |
9.0% |
42.9% |
|
Toyota RAV4 |
11.5% |
17.9% |
55.7% |
Source: Edmunds.com
LEAVE A COMMENT
Click here to comment on this entry.I am not sure you can deduce much from a one day spike. Also the news that 13 complaints have been made from people who have had their cars "fixed" will not help Toyota since it keeps these very serious issues in the public eye.
Of course these incentives will help them increase sales but decrease their profitability.
They are finance and lease incentives, not purchase incentives. Nearly no increase in incentives if you pay cash as rebates have remained the same or decreased for most models.
All Car Companies should have came forward with a full disclosures of what car were dangerous. Instead of waiting for a huge media blitz and tons of public pressure. I never seen so many car companies GM - NISSAN - TOYOTA - HYUNDAI having recalls all at the same time. I had no idea my car was affected until I looked on http://www.carpedalrecall.com and found I had a bad Anti Lock control unit on my 2008 Pontiac G8 , my co workers Ford Truck had a recall also. So be careful
Some professor testified that he could reproduce the sudden acceleration in a Toyota and Toyota will try to dispute it tomorrow, Monday.
While there's still doubt in Toyota's released fixes, I think the uptick in purchase intent can be explained. The owner/driver must believe that if his new Toyota accelerates suddenly, it will kill a pedestrian or some other people, not himself. The purchaser is taking advantage of the money saving at the expense of the public.
good to see the press rallying around TOyota. CR's head of testing is going around recommending people take a look at Toyota because they make some of the best vehicles on the market and are completely safe after being repaired under the recall.
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