Toyota quietly added its first ever incentives to its Prius hybrid in January. The varied incentives were available in seven of Toyota’s 12 U.S. sales regions, and included low lease payments (a $249 monthly lease contract in New York), cut-rate finance deals (3.9 percent for 36 months in Michigan, Ohio and Kentucky), or dealer cash.

Toyota wants to move 150,000 Prius hybrids this year, in comparison to 106,971 units in 2006 and 107,897 in 2005. Toyota spokesman Bill Kwong said the incentives were to help ensure that Toyota meets its sales target for the Prius. While the Prius had its best ever January sales (up 8.4 percent to 8,299 units), Toyota has a long way to go to reach 150,000 units.

Unless gas prices climb significantly, it is likely to continue to get harder for Toyota. On April 1, the federal tax credit for a Prius will drop to $787 — down from $3150 before October 2006. The federal tax credit for Toyota’s hybrids will be phased out completely on October 1.

## Source: AutoWeek ##

Posted in: Toyota, News, Hybrids, Incentives, Car Buying
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