If you were hoping to buy Toyota's largest sedan, you may be in for a surprise at your local dealership. Based on our analysis of national inventory listings, the Toyota Avalon has sold out at most dealerships. Even if you manage to find one in stock, a closer look finds that the discontinued car has virtually no incentives.
News of the Toyota Avalon being discontinued broke last year, and reports claim production ended this August. According to several major car listing sites, there are fewer than 70 cars left in stock. With the 2022 Avalon being the model's final year, full-sized car buyers in the U.S. may have trouble finding a good alternative.
For example, Chrysler is killing the 300 sedan after 2023 and is sending it off with a limited-production 300C variant with HEMI V8 power. Similarly, Nissan is reportedly planning to end Maxima production next year. This could leave buyers with few choices for a smooth-riding sedan with a hybrid option to boot.
Discounts on the Avalon have been non-existent. Here in Southern California, a dealer incentive bulletin reveals that Toyota canceled Avalon financing deals altogether, and there are no more lease deals on the 44-mpg Avalon Hybrid. However, there is one incentive left for buyers lucky enough to find one in stock.
Through October 3rd, Toyota Financial is offering $1,000 in APR Cash on both the Avalon and Avalon Hybrid. Unlike a normal rebate, this is an incentive that you can only get when financing. In the absence of financing deals, Toyota's online payment estimator lists an eye-watering 72-month interest rate of 8.21% APR.
That represents a substantial price increase compared to recent offers. A month ago, Toyota's non-promotional rate was listed at 7.44%. On a $40,000 car, we estimate that a 6-year loan at 8.21% would cost roughly $10,800 in interest. Curiously, buying a used Avalon could end up being a better deal for shoppers.
For example, a national dealer incentive bulletin shows that Toyota is offering 4.5% APR for 60 months on factory-certified Avalons. Depending on the vehicle price that you can manage to negotiate in your area, this could help put a significant dent in your costs given the ongoing Federal Reserve rate hikes in 2022.
If you have the luxury of having time on your side, it's also worth noting that Toyota plans to replace the Avalon with the Crown for 2023. A crossover-like sedan, the Crown will be a hybrid-only vehicle. If you can manage to wait, the 2023 Crown may offer an alternative for buyers uninterested in stepping up to a new Lexus.