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After Recalls, Toyota Considering Longer Warranties to Win Buyers Back

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Feb 16th, 2010 by Ross Edwards

Toyota’s reputation as a reliable car brand has been damaged pretty severely by the recent recalls the company has issued to fix quality and safety issues. Now the carmaker is considering plans to issue longer warranties and large incentives in order to entice buyers, according to Bloomberg.

Toyota may offer a 10-year warranty similar to the one Hyundai has been offering for years. Hyundai started offering its 10-year warranty in order to fix the company’s reputation for building unreliable cars. Toyota currently offers a 5-year, 60,000 mile powertrain warranty on new vehicles.

Toyota will almost definitely need to start offering heavy rebates and incentives from now on. Before the recalls, Toyota did not need to use heavy incentives to sell cars, while most car companies did. Toyota’s reputation for reliability helped the company sell cars during tough economic times. With that reliability in question, Toyota will have to do something special to convince buyers to consider its cars.

2010 Toyota matrix Picture


Posted in car buying incentives, Incentives, Recalls, Toyota | No Comments

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