Incentives and rebates are offered by auto manufacturers to both customers and to dealers, for the same purpose – to increase the sales volume of cars.
The three most common types of incentives offered to customers directly are cash rebates, low-interest financing, and special leases. Also, Toyota also extends special prices to a particular category of clients like students, military personnel, and senior citizens.
Cash rebates are direct discounts offered by Toyota on the sale price of their SUV that is given to customers who pay cash down payment for their purchase. For those opting for a finance plan, low rates of interest on the loan amount are granted. The interest rates vary depending on the cash amount the customer brings in and the tenure of the loan. Toyota also offers subsidized leases.
Leasing an SUV refers to the sale of the vehicle by Toyota to a leasing company, who in turn lets it out for a monthly fee to customers. It means Toyota lowers the sale price of the utility vehicle to the rental company, and this indirectly reduces the customer’s monthly payment towards the car.
The other section of people to whom Toyota continuously provides incentives is their dealers or franchisees. Incentives to this vital link in the supply chain may be in the form of marketing support to boost sales or could be dealer cash incentive. This is given for many reasons – for the purchase of a specific number of SUVs from Toyota, for the sale of every utility vehicle by the dealer or for achieving fixed sales targets for a particular period. The dealers, in turn, may or may not pass on this support to their customers who buy the SUVs.
Toyota employs all these methods to encourage sales of their crossovers, trucks, and SUVs. They reduce the net cost to consumers without reducing their suggested retail price for the dealers. Now drive off with a new SUV for a lesser price. Take advantage of the deal that suits you the best.