Do automakers or dealerships provide incentives to purchase their make again?

I am leasing a Toyota and am interested in purchasing a Toyota or Lexus for my next vehicle. Do automakers or dealerships provide incentives to purchase their make again, or to upgrade to their luxury brand?

Dan, Crawfordsville, Ind.

You bet they do. You should expect a friendly tap on the shoulder a few months before your lease expires (maybe earlier) telling you about irresistible, previously unheard of deals available only to special customers like you because they love you and want to keep you as a customer for at least a few years longer.


With leases, the offers typically include the ability to start a new lease before your current contract ends with no penalty, waiving end-of-lease costs and/or a security deposit and more. If you want to buy instead of lease again, Toyota may have sweeteners such as a "loyalty bonus" or low-interest financing to offer.

Incentives for existing customers may be better than those offered to someone new to the brand because the rule of thumb is that it is more expensive in total (counting advertising and other marketing expenses) to win a new customer than it is to keep a current one. However, when your lease expires you will be a free man who can shop elsewhere, or at other dealers within the same brand, and not be limited to the first loyalty offers you receive.

If the manufacturer or dealer offers, say, $1,000, could you do better by shopping at a different dealer or letting everyone know you're shopping other brands? Even if you intend to stick with Toyota, it might be worth your while to find out.

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Answered by Rick Popely on May 19, 2013 in I'm Just Wondering | Permalink

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