Pedals, smeddles, Toyota moves metal as well as any automaker and at far less cost.
For every $500 that Toyota offers in incentives, other automakers have to counter with incentives ranging from $420 to more than $3,000 to generate the same consideration levels among new car shoppers, according to a report from CNW Research.
The data are for equivalent cars among brands.
The study was conducted during the first quarter of 2010 when Toyota unintended acceleration woes dominated national news coverage, shows that with the exception of Honda, major automakers still lack the innate advantage that Toyota’s reputation has among new car buyers.
During March, Toyota, helped be record level incentives, saw sales rebound to pre-recall levels. About 40% of Toyota buyers came from other makers last month.
Among the big six makers in U.S. sales, Honda retained its consideration advantage, since it only has to spend $425 to Toyota’s $500, continuing a Honda edge, varying from $325 to $475, that has existed for a decade, according to CNW.
Chrysler was at the other end of the scale, needing $3,100, an all time high for the decade.
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Incentive Equivalent Big Six |
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| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
| Toyota | 500 | 500 | 500 | 500 | 500 | 500 | 500 | 500 | 500 | 500 | 500 |
| GM | 1,950 | 2,100 | 2,075 | 2,150 | 1,975 | 1,850 | 1,125 | 1,175 | 1,500 | 2,000 | 1,750 |
| Ford | 1,550 | 1,475 | 1,550 | 1,575 | 1,525 | 1,375 | 1,525 | 1,575 | 1,500 | 1,250 | 950 |
| Chrysler | 1,750 | 1,975 | 1,650 | 1,525 | 1,075 | 1,525 | 1,775 | 2,050 | 2,275 | 2,675 | 3,100 |
| Nissan | 1,275 | 1,350 | 1,150 | 1,025 | 875 | 900 | 1,025 | 1,050 | 1,050 | 1,075 | 800 |
| Honda | 350 | 325 | 325 | 375 | 350 | 425 | 475 | 450 | 425 | 450 | 425 |
| Source: CNW Research. Calendar Years, in U.S. dollars. The ratio is Toyota $500 : Other Brand. 2010 data are Q1 | |||||||||||
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Sales Index Q1 2010 |
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| Ford | Hyundai | GM | Toyota | All Others | |
| Toyota Drop Outs | 19.31% | 11.52% | 21.66% | 0.00% | 47.51% |
| Floor Traffic (100 = 3 yr Avg) | 131.6 | 142.3 | 129.3 | 103.77 | 93.6 |
| Closing Ratios | 36.8% | 32.7% | 28.40% | 41.6% | 37.8% |
| Sales Index | 48.43 | 46.53 | 36.72 | 43.17 | 35.38 |
| Source: CNW Research | |||||
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How to Read Sales Index
Of those new-car shoppers who dropped a Toyota from their shopping list within a month of acquisition, what was the percentage who replaced it with a Ford, Hyundai, or other make?
The Floor Traffic Index shows the first quarter of 2010. It is based on the floor traffic during the previous three years’ first quarters.
Closing Ratios are the number of shoppers who make the specific brand’s acquisition once entering the dealership.
Sales Index: To normalize the comparison between brands, CNW combined floor traffic and closing ratio to get a truer picture of a comparable sales activity.