With millions of its best-selling vehicles under recall, Toyota may increase the length of its warranties in order to increase consumer confidence.
According to the Detroit News, Toyota “is considering increasing incentives or extending warranties as part of its response to the recalls, which have made some consumers wary of buying Toyota products.”
Some reports indicate that warranties may be extended to as long as 10 years. “If the extended warranty materializes, the Hyundai-like coverage could add quite a bit of money into Toyota's warranty costs, but that cost could be made back in augmented consumer confidence and higher sales totals,” writes Autoblog.
In an interview with the New York Times: “Jesse Toprak, the vice president of industry trends at TrueCar.com, which tracks vehicle sales and pricing, said Toyota needed to offer various incentives to overcome the damage done by its recent recalls. He said Toyota should offer discounts of at least $1,000 and longer warranties to new buyers, automatically extend warranties for customers whose vehicles were recalled and seek to win over people who own competing brands in response to the discounts that General Motors and other carmakers were offering Toyota owners.”
For now, other automakers are banking on Toyota’s inability to resurrect its solid build reputation. In an attempt to grab some of Toyota’s market share, competitors -- like Ford, General Motors, Chrysler and Hyundai -- are offering attractive incentives to current Toyota owners who switch to one of their vehicles.
Check out the latest Toyota recall news and information, including how the company's recent troubles affect our rankings. If you're in the market for a new car, check out the U.S. News rankings of this year's best cars as well as this month's best car deals.