Toyota Motor Sales U.S.A. Inc. now has a higher average incentive on its new ’07 Tundra fullsize pickup truck than General Motors Corp. does on its Chevy Silverado.
Edmunds.com’s “True cost of Incentive” report says TCI on the Tundra in February was $1,647, vs. the Silverado’s $1,529. Chrysler Group’s Dodge Ram 1500 model had the largest average incentive – $5,655.
Edmunds calculates TCI based on a variety of offerings, including leases and cash rebates given to consumers, as well as dealers.
“The Tundra’s relatively high price seems to have alienated many potential buyers who might otherwise have been swayed to consider a well-equipped, Texas-built truck produced by an import auto maker with a solid reputation,” Edmunds.com Senior Analyst Jesse Toprak says in a statement.
“With a market share battle in full force, we expect the truck incentive war may continue throughout the year.”
The Tundra begins at $22,290 for ’07, while the Silverado starts at $18,760.
The Edmunds.com survey comes amid a report Toyota has added a $1,000 trade-in allowance on the Tundra, which already has a possible $2,000 spiff, depending on the trim level and region of the country. The incentives reportedly are available through the end of next month.
Toyota said it sold about 600 new Tundras in the U.S. last month, when the ’07 model went on sale.
Ward’s data shows total Tundra sales, which include the previous model, were off 20.1% to 15,990 units in the first two months of the year, while Silverado sales rose 14.9% to 97,089 in the same period.
Toyota is targeting sales of 200,000 Tundras this year in the U.S.