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Discussion Starter #1
With the virus putting a strain on the retail businesses as of late including auto sales,
how will that effect sales/pricing on a new '20 Highlander this summer?

Create a big rebate program maybe?
Cash discounts?
0% interest?
None of the above?
 

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There will likely be low levels of Highlander inventory to sell to.......

Now if you want something else, that is in a high inventory position, maybe.........
 

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With the virus putting a strain on the retail businesses as of late including auto sales,
how will that effect sales/pricing on a new '20 Highlander this summer?

Create a big rebate program maybe?
Cash discounts?
0% interest?
None of the above?
I would anticipate some sort of incentive program greater than what has been seen recently. Timing of course is questionable as we really don't know how this is going to play out. The trend right now is obviously to continue restricting public interactions by closing universities and schools, restaurants, etc. The first shelter in place was ordered today in San Francisco, and I expect we will see more of that. If we are out of this in 2-3 weeks the incentive will be relatively small, but if this drags on for 30-60 days or more then I would expect a larger one. Naturally the automakers will shut down production depending on how comprehensive and far reaching any forced quarantine becomes.
 

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the 2009 recession coupled with a lot of toyota unintended acceleration accidents, toyota had 0% APR and massive amount of dealer incentives back then. we may see some level of big incentives coming in the next year if the virus persists to next winter. just my guess.
 

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I'm starting to see inventory pick-up locally. Been checking almost daily, using carguru, 2020 Highlander, there's 1076 vehicles of all trims within 150 miles of my zipcode. I'm sorta interested in the Platinum, and stock has been in the 15-19 range within 150 miles past 30 days, and just in the past 3-4 days, Platinum stock has jumped to 30-32!

Made a few feeble attempts to negotiate 30days ago, but most dealers weren't interested as inventory on Platinum was so low... and they didn't have the ext/int color that I wanted anyway... Ready to pull the trigger by end of this month if this lock-down due to COVID-19 freaks people out and if they want to negotiate.. else I will probably wait it out into April/May to see if Toyota will add more incentives to bring traffic back into the dealership... I suspect things will get slightly worse before turning the corner.. hopefully building inventory in the mean time to make it a buyer's market...

I'm shooting for the low price range of what people have reported getting the Platinum for via the Costco Auto program, wish me luck...
 

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Whatever reduction there is in new car prices because of market conditions, there will also be a reduction in used car prices and therefore trade-in values. For people expecting to trade something in, the deals on the new side may not equate to huge total savings.
 

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My XLE Hybrid is currently in transit from Princeton, Indiana, to the dealer. My worry is the dealer will temporarily close any hour now due to the virus. Many other businesses have shut down. Why wouldn't the car dealers? Sounds extreme, but everything that is happening now would have sounded extreme just 5 days ago.
 

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With interest rates at zero, companies like Toyota can borrow money for free and use it to finance vehicle sales so zero percent financing may be coming back. Perhaps it would be good to see what incentives TFS will be offering for April or even sooner if you will be taking delivery soon. They will only get better. Plummeting oil prices may mean that hybrid are also included.
 

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The whole industry will be in a seriously weighted buyers market for some time. Maybe months or longer. I was looking at the Aviator, and with all my idle time I'll do some looking...
 

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the 2009 recession coupled with a lot of toyota unintended acceleration accidents, toyota had 0% APR and massive amount of dealer incentives back then. we may see some level of big incentives coming in the next year if the virus persists to next winter. just my guess.
There are already big incentives on certain models, like Camry for sure. Already popular ones like the HL and RAV4 might see more, since their space is super highly competitive the most nowadays. Its uncharted territory now, so who knows what will happen. I'm most likely going to re-fi my house, but also want to purchase a car too.
 

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There are really two issues when it comes to the amount consumers pay:
  • Toyota Regional Distributor incentives from Southeast Toyota, Gulf States Toyota, and all the others that are owned by Toyota (the first two are not owned by Toyota). To know what these incentives are, one must input a zip code at the Toyota website because they do vary by distributor (but all the Toyota owned distributors typically have the same incentives).

  • Dealer willingness to negotiate lower prices.
I would expect to see some softening of prices in at least one of the two above.
 

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There are really two issues when it comes to the amount consumers pay:
  • Toyota Regional Distributor incentives from Southeast Toyota, Gulf States Toyota, and all the others that are owned by Toyota (the first two are not owned by Toyota). To know what these incentives are, one must input a zip code at the Toyota website because they do vary by distributor (but all the Toyota distributors typically have the same incentives).

  • Dealer willingness to negotiate lower prices.
I would expect to see some softening of prices in at least one of the two above.
One doesn't happen without the other. Dealers won't go lower in price without help from the manufacturer. The more they get, the lower they can go down in price. There are other things that consumers like us won't know, such bonuses and vehicle allocations that may not always be financial, in which the dealer could "take a loss", but there is likely a reason involved.
 

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There will likely be low levels of Highlander inventory to sell to.......

Now if you want something else, that is in a high inventory position, maybe.........
This would certainly be the case if the Princeton IN site that make both the gas and hybrid Highlanders has to limit number of workers allowed to be at the plant at one time thus reducing output or even worse if Toyota is forced to close the facility altogether if restrictions become more severe.
 

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One doesn't happen without the other. Dealers won't go lower in price without help from the manufacturer. The more they get, the lower they can go down in price.
It is true that if Toyota has incentives, the lower the total price to the consumer.

But if a car starts out in high demand with low supply (like 2020 HL Platinum Trim), the dealer may only accept MSRP, and then as supply catches up (or demand falls) then a dealer would likely take less than MSRP, so that would be a dealer initiated reduction in negotiated price.
 

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There's an old Wall Street maxim that applies here:
"Buy when there's blood in the Streets"

I got an excellent price on a used Avalon in 2010, what with lack of customers, and the unintended acceleration flap.
You have to be willing to wait, if yo GOTTA have it, you'll probably pay too much.
 

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Discussion Starter #19
It is true that if Toyota has incentives, the lower the total price to the consumer.

But if a car starts out in high demand with low supply (like 2020 HL Platinum Trim), the dealer may only accept MSRP, and then as supply catches up (or demand falls) then a dealer would likely take less than MSRP, so that would be a dealer initiated reduction in negotiated price.
Any dealership and Toyota can eat my shorts the day I pay MSRP.
Can you say "2020 Corvette"
 
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