Toyota Camry Discounts Remain Amid February Sales Drop

2013_Toyota_Camry

Toyota is staying the course on incentives to keep its popular Camry atop the family-car sales pile. The automaker sold 31,270 Camry sedans in February, marking the nameplate's 16th consecutive month as the No. 1 family sedan. But the lead was narrowing. Camry sales dropped 9.5% versus February 2012 as the Nissan Altima, Honda Accord and Ford Fusion fell within 4,000 sales of Toyota's popular sedan. One or two competitors have come closer at certain points in recent months, but it's rare that so many are hot on the Camry's tail. Indeed, the Camry accounted for 18.4% of all new family-car sales in January 2013; in February, that portion fell to 16.1%.

Toyota appears intent on keeping the sedan's best-selling status — but it will have to fight for it. Nissan CEO Carlos Ghosn told reporters at the 2012 New York International Auto Show that he wants the Altima to "take a shot at being No. 1 in the segment."

"We know it’s a competitive segment," spokesman Mike Michels told Bloomberg News on Wednesday. "All three of those makes are very high profile in their marketing, and all three companies want to make an impact with consumers."

Toward that end, Toyota has its foot on the gas — or the cruise control, as it were — with incentives.

Camry owner Jimmy Drew, a utilities planner in Del Ray Beach, Fla., told us in January he saw zero-percent financing deals on new Camry sedans at the time. That's better than the 1.9% rate he nabbed on his 2012 Camry SE when "they weren't offering the specials at all."

Those deals have spread to the 2013 model year. In February, Toyota rolled out interest-free financing for up to 60 months for the 2013 Camry, excluding the Camry Hybrid. That's well below the industry average, which Bankrate.com pegs at 2.65% for a 48-month new car loan. The offer extends through April 1.

It beats the Honda Accord's current financing offers — 0.9% to 1.9% — but other competitors have cash discounts, on which Toyota has yet to pull the lever. Nissan offers up to $1,000 on top of discount financing on the 2013 Altima sedan, while Ford offers discount financing or $1,500 on the non-hybrid 2013 Fusion. The Chevrolet Malibu and Hyundai Sonata also have cash discounts. And Chrysler is shoveling money (up to $3,000) off the 200 sedan and its Dodge Avenger sibling. Check with your dealer for regional specifics; our figures come from a national survey of multiple regions.

But the competition is driving the discounts. It's rare to see a mainstay segment get so many redesigns in such a short period: Between September 2011 and October 2012, six nameplates representing 71.1% of all 2013 family-car sales hit showrooms with redesigned models. Analysts told us in January the competition was causing an incentives bloom as redesigns overlapped sell downs of outgoing cars. That may have subsided. J.D. Power & Associates says incentives for a midsize family car averaged $2,507 in February, down from $2,900 a year earlier.

In the end, the Camry's tenure at the top will depend on its strengths — particularly a reputation for comfort and durability that's kept it America's best-selling car (excluding pickups) since 2001. Is it at risk? The Camry placed fourth in Cars.com's $26,000 Midsize Sedan Showdown, and it failed an Insurance Institute for Highway Safety small-overlap frontal crash test; the Accord sedan aced it. By contrast, however, first-year reliability figures for Toyota's seventh-generation family sedan have been excellent.

Through February, Toyota has sold 63,167 Camrys. The second-place Accord is 11,244 cars behind — but it's still early in the year.

Related
Cars.com $26,000 Midsize Sedan Shootout
Why Family Cars Dominated 2012
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By Kelsey Mays | March 8, 2013 | Comments (7)

Comments 

Max Reid

Fusion has a better lineup with Ecoboost, Hybrid, Plugin and Mild-Hybrid.

It may soon take #1 from Camry.

sheth

comparing camry discounts to 200/Avenger is a bit ridiculous. Those cars are nowhere near Camry's sales and they are both nearing end of product cycle. The reality is Toyota will do whatever it takes in terms of incentives to keep camry #1. They also are doing a lot of fleet sales, I would like to see camry break down for rental sales- I'm sure it's in the same ballpark as Altima and Fusion. Tons of camry rentals at our airport.

sheth

another thing, let's stop pretending the camry's #1 sales position can be attributed to "superior" reliability. If CR is the source you believe (and this site leans heavily on CR when convenient) than the basically every Japanese sedan is bulletproof. There is no reliability advantage for Camry vs Accord, Altima, Legacy or Mazda6 if you believe Consumer reports. Camry remains #1 do to low pricing, aggressive deals, and fleet sales. It's not a better car than it's rivals nor is it more reliable than it's top rivals.

lillyman

I agree with Sheth, sales does NOT mean, a reliable car. I judge cars base on their value as used cars, 3 or 4 years later. When you are trying to trade them in for a new model or a new nameplate. My initial purchase price and the outcome as a trade in 3 or 4 years is my bottom line. Cars that hold their value, are usually the best car for me as NEW. Cars are not an investment and we all know it, but getting 50% to 70% back in 3 or 4 years, is worth the name plate you select.

Lance

Apparently Kelly Blue Book must be in cahoots with Cars.com and CR as they name the Toyota as the best brand for resale value and the Camry as the best midsize car for resale value. Also, check ALG which most dealers use for residual values on leases. They also recognise which vehicles hold their value the best.

I understand that all the people that are willing to pay more for a used Camry are totally brainwashed and not too intelligent(please note sarcasm) in the first place according to some, but I would guess that the main reason is because they are well made and have few problems and people bet their paycheck that they are going to get many more years of fairly troublefree use out of them.

Steve

The Toyotas hold value more because people WANT them. Ever try to find a used RAV4? It's not that easy around me. How much value is there in a mainstream car that few people want? Maybe the Camry is ugly and inferior, but I see them all over the roads. Alot of people apparently didn't get the memo that there are better cars out there, including me. Oh well..

Paul

I work as a Pharm Rep and drive about 50-60k miles a year. I've had literally every vehicle in the family car segment as a company car. Thankfully I get a new one every 18-20 months and have a large fleet to choose from which literally has everything except the Optima. Hands-down the Camry is the best all around car followed closely by the Accord. If the new Accord has more sound proofing than last gen than I'd say it's the best but only by a hair. There's something about the Camry and how it does so many things very well.

PS My wife and I own an S6 and a GTR so I'd like to think we know a thing or two about cars.

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