Toyota gambles with Fire Sale Prices over piling inventory!!! (Cross post removed)
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From: Mike on 1 Aug 2010 19:18 Since over half of the vehicles Toyota sells in the US are imported, it needs to build the number of vehicles it believes they will be selling in five or six months. With the way their sales are today that is hard to predict hence the over supply sitting at the docks and in dealer inventory. Declining selling prices are only going to hurt they perceived retail values. When that happens all of the previous years models decline in value as well and that is what is driving the current effort for a class action by the shark law firms adding to Toyotas woes. "john" <johngdole(a)hotmail.com> wrote in message news:d52dbe8c-90e9-421e-966c-d2d961239309(a)s24g2000pri.googlegroups.com... > Looks like inventory is piling up, and a good way of doing a fire sale > is Low Lease Rates to riskier customers (sub-prime?) instead of Cash > Incentives. > > "For Toyota, the deal could be a financial disaster. To keep customers > coming to its showrooms amid a series of embarrassing recalls, Toyota > has been offering some of its best leasing terms in years. > > And now it's offering leases to customers who are greater credit > risks. CNW Research noted in a report that one Toyota program requires > a credit score of "only 660 to qualify." That's seen as the dividing > line between good and poor credit. > > "Toyota was in a corner. They had the recalls, and their inventory was > climbing," said Matt Traylen, chief economist for Automotive Lease > Group, or ALG, which analyzes residual and depreciation data. > > Full article at: > http://www.freep.com/article/20100801/BUSINESS01/8010457/1331/business01/Toyota-gambles-on-future-with-low-lease-offers |