Toyota increases rebate on new Tundra

[ifcar]

Automotive News / March 28, 2007 - 8:56 pm

LOS ANGELES -- Facing pricing pressure from domestic automakers willing to place cash incentives on their full-sized pickups, Toyota Division has added a nationwide $1,000 spiff on the just-launched 2007 Tundra.

The new incentive can only be applied to help a customer with a vehicle trade-in allowance, said Denise Morrissey of Toyota. Dealers do not have to spend the entire $1,000; they can offer it how they see fit, Morrissey said.

Toyota already has incentives of up to $2,000 cash back on the Tundra, which vary by model and region. The standard cab Tundra has as much as $2,000 cash back, depending on the region. The extended cab model has up to a $1,000 spiff. The Crew Max model has no incentives, and the trade-in assistance is not applicable on that model, Morrissey said.

Toyota Financial Services also has special APR and lease rates for customers with Tier 1 or Tier 2 credit ratings.

The trade-in incentive is effective through the end of April. The other incentives are expected to stay in force next month as well.

[Secret Chimp]

This is the first time I've seen "spiff" used in such a manner.

[the Teuton]

I think Toyota finds this to be a spiffy idea.  They must not be selling as well as originally anticipated.

[Raghavan]

That's unfortunate. I haven't seen a single Tundra out on the road.

[SVT666]

I haven't seen one either.  I've seen a few on lots, but none on the road.

[SVT666]

The one and only problem with the Tundra is this:  It does absolutely nothing better then the domestics...unless drag racing is important to you in a 6000 lbs truck.  It is as good in every department as any of the domestics and the domestics cost less and they have not given their customers any reason to leave.  The Tundra needed to be special, but it's not.  It's just like all the other trucks.  Styling wasn't even a breakthrough of any kind except that it makes the Ram look bland in comparison.  There's nothing special about it.  That's the problem.  Maybe if they had put a trunk in the bed......

[280Z Turbo]

The one and only problem with the Tundra is this: It does absolutely nothing better then the domestics...unless drag racing is important to you in a 6000 lbs truck. It is as good in every department as any of the domestics and the domestics cost less and they have not given their customers any reason to leave. The Tundra needed to be special, but it's not. It's just like all the other trucks. Styling wasn't even a breakthrough of any kind except that it makes the Ram look bland in comparison. There's nothing special about it. That's the problem. Maybe if they had put a trunk in the bed......

I don't know about that. The Tundra has a big motor, big brakes, 6 speed trans, big differential, big cab, etc. I'd definately say they've distinguished it from the rest of the pack. Whether or not any of that makes it better than the rest, I don't know. I'd still rather have a GMC Sierra if I was shopping for a 1/2 ton, but that's just me.

I'd rank them:

GMC/Chevy
Ford
Toyota
Nissan
Dodge

Seems as if they've tried the Dodge strategy with the new Tundra: Make it look like a semi, drop a big V8 in it, and market it as being super tough.

[850CSi]

I'd still rather have a GMC Sierra if I was shopping for a 1/2 ton, but that's just me.

Same here.

[Submariner]

The one and only problem with the Tundra is this:  It does absolutely nothing better then the domestics...unless drag racing is important to you in a 6000 lbs truck.  It is as good in every department as any of the domestics and the domestics cost less and they have not given their customers any reason to leave.  The Tundra needed to be special, but it's not.  It's just like all the other trucks.  Styling wasn't even a breakthrough of any kind except that it makes the Ram look bland in comparison.  There's nothing special about it.  That's the problem.  Maybe if they had put a trunk in the bed......

What about Sooooooooper Handling AWD?

[SaltyDog]

The one and only problem with the Tundra is this:  It does absolutely nothing better then the domestics...unless drag racing is important to you in a 6000 lbs truck.  It is as good in every department as any of the domestics and the domestics cost less and they have not given their customers any reason to leave.  The Tundra needed to be special, but it's not.  It's just like all the other trucks.  Styling wasn't even a breakthrough of any kind except that it makes the Ram look bland in comparison.  There's nothing special about it.  That's the problem.  Maybe if they had put a trunk in the bed......

Out of all large trucks it's probably the most different.  Since when is a bigger engine not better?  The Tundra can tow 10,000 pounds!  And even with the longer wheelbase the front end is designed to make a really impressive turning radius.  That's another real world adavantage that could definately come in handy on a construction site or something.

[ifcar]

Toyota made the mistake of trying to appeal to truck people instead of Toyota people. Toyotas are popular because they are easy to use, comfortable, and quiet, and have their reputation for reliability. The Tundra's target consumer should have been someone who loves his Camry or RAV4 who also needs a pickup truck, and focused on matching or besting everyone else's luxury and refinement, just with more power and capability than before.

Instead, Toyota made an un-Toyota truck to prove they could, and no one wants it.

[TBR]

What are the sales numbers like?

[ifcar]

They sold 9,669 in February (March sales are still unavailable), which is a decrease of 9% from Feb 06.

[SaltyDog]

Toyota made the mistake of trying to appeal to truck people instead of Toyota people. Toyotas are popular because they are easy to use, comfortable, and quiet, and have their reputation for reliability. The Tundra's target consumer should have been someone who loves his Camry or RAV4 who also needs a pickup truck, and focused on matching or besting everyone else's luxury and refinement, just with more power and capability than before.

Instead, Toyota made an un-Toyota truck to prove they could, and no one wants it.

I think it's more of a long-term plan, one that could take some time to pay off or may not pay off at all.  Either way, there are more truck people than Toyota people who might need a truck.  Their NASCAR success might win over some truck people too.

[GoCougs]

Toyota made the mistake of trying to appeal to truck people instead of Toyota people. Toyotas are popular because they are easy to use, comfortable, and quiet, and have their reputation for reliability. The Tundra's target consumer should have been someone who loves his Camry or RAV4 who also needs a pickup truck, and focused on matching or besting everyone else's luxury and refinement, just with more power and capability than before.

Instead, Toyota made an un-Toyota truck to prove they could, and no one wants it.

This is pretty much how I feel about the new Tundra.

If the Tundra is consistently out front, then the tide will eventually change (somewhat), but it won't happen overnight (read: in a year) especially with gas prices staying high.

They should have stuck with the muted styling that appeals to the "Toyota-faithful" as found in the first generation Tundra.

[280Z Turbo]

Toyota made the mistake of trying to appeal to truck people instead of Toyota people. Toyotas are popular because they are easy to use, comfortable, and quiet, and have their reputation for reliability. The Tundra's target consumer should have been someone who loves his Camry or RAV4 who also needs a pickup truck, and focused on matching or besting everyone else's luxury and refinement, just with more power and capability than before.

Instead, Toyota made an un-Toyota truck to prove they could, and no one wants it.

I liked the old Tundra better. It was a little smaller than the rest with a lower beltline and a more car like appearance, inside and out.

[Sir_CARzy]

I'm not sure if it's reached here yet, but Toyota really likes to trick us with their tundra ads. When they say, on the see-saw ad, it's hard to pull 11,000 pounds up a whatever% grade, they are ACTUALLY referring to the weight of the truck AND the weight of the trailer, when they say its hard to stop it - the trailer also has brakes equipped. The tundra is a decent truck, it's all a truck needs to be, and more, but at the end of the day - its a toyota. And who wants a toyota pick-up truck? Leave that segment to the domestics, please. It's all they've got.

[280Z Turbo]

And who wants a toyota pick-up truck? Leave that segment to the domestics, please. It's all they've got.

Apparently a lot of people do. Have you seen the resale value on old Toyota 4x4s?

[GoCougs]

Apparently a lot of people do. Have you seen the resale value on old Toyota 4x4s?

Yes, a very short-sighted rhetorical question.

Between the Tundra and Tacoma, Americans bought more than 300,000 Toyota pickups in 2006.

[SaltyDog]

I'm not sure if it's reached here yet, but Toyota really likes to trick us with their tundra ads. When they say, on the see-saw ad, it's hard to pull 11,000 pounds up a whatever% grade, they are ACTUALLY referring to the weight of the truck AND the weight of the trailer, when they say its hard to stop it - the trailer also has brakes equipped. The tundra is a decent truck, it's all a truck needs to be, and more, but at the end of the day - its a toyota. And who wants a toyota pick-up truck? Leave that segment to the domestics, please. It's all they've got.

Everyone lies.  I despise those sales tactics too, but it's still a good truck.

[Atomic]

i see quite a few new toyota trucks (i.e. tundra, tacoma) in the college town i live in. i forgot the name of their recently introduced rugged two door jeep-like (imo) suv, but they are everywhere!

tundra rebate? well, that goes to show one that toyota is becoming far more americanized every day? !

the current major "american" truck rebates are as follows

dodge ram 1500: $3000.00-$5,000.00 (2007 models)

ford f-150: Up to $3,000.00 ($2007 models)

ford f-150: $3,500.00-$4,500.00 (2006 models)

ford f-super duty: $2,000.00-$3,000.00 (2007 models)

ford f-super duty: $3,500.00 (2006 models)

chevrolet silverado classic: $1,750-$3,000 (2007 models)

chevrolet silverado: Up to $5,000.00 (2006 models)

note: similar rebates on gmc trucks

i addition to the above information, i have included an article on march 2007 truck sales. read below:

GM, Ford Sales Seen Down in March as Trucks Falter

From: Automotive News, March 30, 2007
?
DETROIT (Reuters) -- U.S. sales for General Motors and Ford Motor Co. were stuck in the slow lane in March as a weakening housing market dampened pickup sales, even as Japanese rival Toyota Motor Corp. raced ahead, analysts said.

Toyota and other Asian automakers have been relentlessly stealing U.S. market share from Ford and GM on the strength of their sedans and crossovers.

The slowdown in the U.S. housing market prompted many contractors, who typically buy pickups, to delay purchases, hurting U.S. automakers, analysts.

"Modest headwinds for the month could be a deterioration of consumer confidence and continued housing weakness," Bear Stearns analyst Peter Nesvold said in a research note.

Another area of concern for automakers is the implosion in the subprime lending market, which analysts say has caused banks to rethink their lending practices, not just for mortgages but autos as well.

"Interest rates on new car loans in January rose to 6.45 percent, a rate not seen in seven years," according to IRN Inc., which tracks the market.

But Nesvold said despite the housing weakness and subprime mortgage fears, the economy remains strong enough to support sales in the low- to mid-16 million-unit range this year.

New U.S. vehicle sales are expected to come in at a seasonally adjusted annual rate of between 16.2 million and 16.6 million vehicles for March, according to analysts.

That would be slightly down to flat compared with last March's 16.6 million-unit rate.

Automakers will release March sales results on Tuesday, April 3.

Most analysts expected GM's sales to be down between 3 percent and 5 percent in March, while Ford sales were forecast to fall by as much as 17 percent.

Ford's chief sales analyst George Pipas told Reuters that sales likely fell by a double-digit-percentage range, hurt by lower sales of its best-selling F-series pickup.

"I can say with some confidence that we'll be down in the double digits," Pipas said. "It's about comparison. The F series did much better last year."

Sales for the Chrysler group are expected to be down between 5 percent and 7 percent.

Toyota, on the other hand, is expected to post a sales increase of up to 9 percent.

"Sales of passenger cars seem to continue to be very strong, particularly the new Toyota Camry, the Yaris, as well as the Lexus LS and ES," Lehman Brothers analyst Brian Johnson said in a note to clients.

Toyota just added a $1,000 trade-in incentive nationwide on its new Tundra pickup truck, which is competing against GM's new Chevrolet Silverado and Ford's popular F series.

"We view this move as a negative development for the category," Johnson said, adding that Toyota's move could lead to a price war in the hypercompetitive pickup segment.

A price war could be damaging for Ford's and Chrysler's profitability, and could hurt GM as "its 2007 turnaround depends greatly on increased contribution margins from its new pickups," Johnson said.

GM, Ford and Chrysler are all losing money, cutting jobs and reducing production. All three are in the midst of executing a restructuring plan to return their North American operations to profit.

Also, potential bidders have begun to size up Chrysler for a potential acquisition after Daimler said in February it was leaving all options open for the unit.

[TBR]

All of those trucks are old models, some of which already have redesigned versions out.

Tundra sales are down compared to last year, that makes me freaking laugh. I think it is a good truck, but Toyota tried to out truck the domestics when the market is transitioning the other way. Frankly, the original Tundra was weak and small, but towards the end they started to get it right with more power and the double cab. Now they've gone too far.

[the Teuton]

The advertising campaigns for the Chevy and the Toyota have been a lot like GWB and John Kerry's campaigns in 2004.  Kerry was always more sophisticated, a better speaker, and looked more presidential.  He had his flaws, but he looked and sounded like a better candidate.

Bush was bull-headed and kept driving home the message that he was steadfast, unwavering, and purely American.  He made no excuses and America found him to be a better choice.  Much the same is true for the Silverado.  It isn't as big, flashy, sophisticated, stylish, or (arguably) good as the Tundra in the numbers, but it is stong, reliable, a known-quantity and purely American.  When it comes to trucks, people like that kind of thing.

[SVT666]

Out of all large trucks it's probably the most different.? Since when is a bigger engine not better??

When all the other 1/2 tons have enough power to do whatever anyone needs it to.? Nobody is looking for that kind of power since everyone has over 300 hp now.? My truck has 345 hp and it's almost overkill.? I have had 3000 lbs in the box of my truck and I had to be really careful with the throttle because the truck still wanted to take off.? There is no way I would seek out more power unless I was buying a 3/4 or 1 ton truck.? Who needs a 6000 lbs pickup to do 0-60 mph in 6 seconds?

The Tundra can tow 10,000 pounds!?

Only an idiot would tow that much with a 1/2 ton.? If you are going to tow that much weight, then you should be buying a 3/4 ton. Minimum.

And even with the longer wheelbase the front end is designed to make a really impressive turning radius.? That's another real world adavantage that could definately come in handy on a construction site or something.

Nobody is going to buy a Toyota because it turns sharper then a Ford.

[GoCougs]

Out of all large trucks it's probably the most different.? Since when is a bigger engine not better?   The Tundra can tow 10,000 pounds!? And even with the longer wheelbase the front end is designed to make a really impressive turning radius.? That's another real world adavantage that could definately come in handy on a construction site or something.

When it's in a Toyota...

[SaltyDog]

When all the other 1/2 tons have enough power to do whatever anyone needs it to.  Nobody is looking for that kind of power since everyone has over 300 hp now.  My truck has 345 hp and it's almost overkill.  I have had 3000 lbs in the box of my truck and I had to be really careful with the throttle because the truck still wanted to take off.  There is no way I would seek out more power unless I was buying a 3/4 or 1 ton truck.  Who needs a 6000 lbs pickup to do 0-60 mph in 6 seconds?
Only an idiot would tow that much with a 1/2 ton.  If you are going to tow that much weight, then you should be buying a 3/4 ton. Minimum.
Nobody is going to buy a Toyota because it turns sharper then a Ford.

Good point regarding towing. 

I don't know about anyone else, but accelerating fast is fun regardless of what you're doing it in.  If I had a truck that could do 0-60 in 6 seconds I would definately do so and enjoy it.  Besides, they offer a smaller V8 and a 4.0 V6 as well.  They're not forcing their buyers into getting a 400hp engine.

Turning radius is just an example of how it sticks out from other trucks in it's class.  280Z hit most of what I was going to say so I didn't want to repeat it.

[SVT666]

I stand by what I said.  There is nothing "special" about the Tundra that would sway anyone from buying a Ford, GM, or Dodge.  Especially when the vast majority of full size truck buyers already have experience with and like the domestic offerings.  The domestics haven't given their customers any reason to switch, like they did with cars in the 80s.

[GoCougs]

Good point regarding towing.?

I don't know about anyone else, but accelerating fast is fun regardless of what you're doing it in.? If I had a truck that could do 0-60 in 6 seconds I would definately do so and enjoy it.? Besides, they offer a smaller V8 and a 4.0 V6 as well.? They're not forcing their buyers into getting a 400hp engine.

Turning radius is just an example of how it sticks out from other trucks in it's class.? 280Z hit most of what I was going to say so I didn't want to repeat it.

Which would you choose: the '06 Camry with 210hp V6 and 20/28 mpg or the '07 Camry with 268hp and 22/31 mpg?

If that extra power doesn't cost any more, and gets better mileage than competitors' less powerful engines, what's the downside?

It's simply a competitive advantage that's illiciting sour grapes.

[SVT666]

It's simply a competitive advantage that's illiciting sour grapes.

Not at all.  I've been saying my Ram's Hemi is almost overkill in a half-ton truck since I bought it.  The standard 4.7L V8 was very underrated and got the same mileage as my Hemi.

[Catman]

I said it from the beginning, there was nothing wrong with the 7/8th size of the last Tundra.  Instead of an alternative all Toyota did was create a "me too" truck.  Toyota should have kept the truck the same size as it was.  No it's the same as everyone elses stuff.