CHEAP TOYOTA LEASES

[regfootball]

a friend called today and we were BSing cars and he mentioned how some neighbors gave in to the toyota tide. normally, he said, they buy a lightly used domestic, on payments and keep it a few and trade it. now, this time, they were enticed by toyota nation and a 179/mo lease on the camry. basic 4 cylinder automatic. who knows what the down payment was, and its very few miles....but i wonder how much of this cheap lease dumping is keeping toyota's numbers up. that and fleets. and then the cars hit auction after a couple years. in any case, toyota must be able to prop up those lease deals with good residuals that are no doubt a factor of their reputation. why buy a compact on a loan when a large camry can be had for so much less? but at what point is it more a factor of toyota buying market share with cheap leases? if this is their game, its game over for the US manufacturers. Toyota and such will just keep cutting costs out of their product but as long as its good enough for the segment and the 179 lease is there, that's how they will get the sale. I do not see GM having the ability to go toe to toe in this area of car sales.

this is how the asian brands will take over the mass market.

I've seen GM start to be aggressive with Malibu, G6, and Aura lease deals now but they still don't match this stuff toyota has going on. I don't think GM can compete in these offers.

Edited February 14, 2008 by regfootball

[enzl]

a friend called today and we were BSing cars and he mentioned how some neighbors gave in to the toyota tide. normally, he said, they buy a lightly used domestic, on payments and keep it a few and trade it. now, this time, they were enticed by toyota nation and a 179/mo lease on the camry. basic 4 cylinder automatic. who knows what the down payment was, and its very few miles....but i wonder how much of this cheap lease dumping is keeping toyota's numbers up. that and fleets. and then the cars hit auction after a couple years. in any case, toyota must be able to prop up those lease deals with good residuals that are no doubt a factor of their reputation. why buy a compact on a loan when a large camry can be had for so much less? but at what point is it more a factor of toyota buying market share with cheap leases? if this is their game, its game over for the US manufacturers. Toyota and such will just keep cutting costs out of their product but as long as its good enough for the segment and the 179 lease is there, that's how they will get the sale. I do not see GM having the ability to go toe to toe in this area of car sales.

this is how the asian brands will take over the mass market.

I've seen GM start to be aggressive with Malibu, G6, and Aura lease deals now but they still don't match this stuff toyota has going on. I don't think GM can compete in these offers.

No. They can't because of residual hell. 10 pts. or more means $2000-3000 in equity that needs to be address over only 24-48 months..simple math sez $40-$125/month (+ interest) that GM needs to eat or charge the customer...and auctions generally net less than set residual values for GM as well.

That's where the product quality can literally save a corporation. Unfortunately for GM, the overall perception lagging those quality gains have left them in a tough position.

[Dsuupr]

The resale value on the current Malibu is supposed to be equal that of the camry when it comes to leases. The big catch; toyota has TONS of cash to blow and GM doesn't. Even if they didn't have the cash, the Japanese government would kick in so they did. No matter what GM does, the Japanese government will do what ever it takes to help toyota win.

[toesuf94]

The resale value on the current Malibu is supposed to be equal that of the camry when it comes to leases. The big catch; toyota has TONS of cash to blow and GM doesn't. Even if they didn't have the cash, the Japanese government would kick in so they did. No matter what GM does, the Japanese government will do what ever it takes to help toyota win.

AND this is exactly why the government needs to tack on the same tarriffs that Japan socks ANY manufacturer with in thier home markets. We need to match these amounts to make the playing fields equal. I do not want the US to go into isolationism, but I would like to see the movement to protect US jobs and marketshare. We gave away the store with the television, the microwave oven, and now it is slowly happening in the auto industry. And when I say slowly, I mean right now.

Japan, INC will help with the subsidies to keep product moving for Toyota. This is a methodical war that has been going on since the 1960's and not one person in the US Government seems to realize what the policies of self destruction are doing to this country or the U.S. automotive industry.

[daves87rs]

Well, I don't know if I would be worried yet...

While cheap leases are nice, people are going to question why the Camry is so much cheaper than the Mailbu...

Around here, I've seen Camry leases for 169 a month ith about a grand down, and Malibu leases from about 249-279 a month with a grand down....

Then again, I spotted about 6 07-08 Camrys on the local Chevy lot....

[IfICouldWouldYou?]

CHECK....AND MATE. Toyota has a few aces up its sleeve just yet. :AH-HA_wink:

[Z-06]

CHECK....AND MATE. Toyota has a few aces up its sleeve just yet. :AH-HA_wink:

I did not know chess was played with cards.

[Robert Hall]

Well, I don't know if I would be worried yet...

While cheap leases are nice, people are going to question why the Camry is so much cheaper than the Mailbu...

Or the reverse...people will think 'why pay so much more for a Malibu, when I can get a Camry for so much less?

[IfICouldWouldYou?]

I did not know chess was played with cards.

Toyota plays to win....and rewrites the rules. He with the deepest pockets writes the rules.

[Z-06]

Toyota plays to win....and rewrites the rules. He with the deepest pockets writes the rules.

Writing rules is different and putting pieces of different games is another story.

[regfootball]

The resale value on the current Malibu is supposed to be equal that of the camry when it comes to leases. The big catch; toyota has TONS of cash to blow and GM doesn't. Even if they didn't have the cash, the Japanese government would kick in so they did. No matter what GM does, the Japanese government will do what ever it takes to help toyota win.

my point exactly. if it gets into a lease rate pissing match we will lose.

[daves87rs]

Or the reverse...people will think 'why pay so much more for a Malibu, when I can get a Camry for so much less?

Well, the newer GM products actually induce a pulse....while the camry is pretty much a washer on wheels......

It's kinda like getting a Honda at a Kia price.....

People used to get GM products because they were cheap, and most often passion-less cars....

Now Toyota is looking in that same mirror....