If you are currently leasing a Japanese car, you might be eligible for some unusual lease incentives from a number of different automakers as they attempt to deal with inventory shortages. With fewer cars sitting on the lot as the result of production slowdowns related to the March earthquake and tsunami, Nissan, Honda and Toyota are offering current lease customers the chance to stay with their current vehicles rather than attempt to trade up to a new model, as well as cash incentives to stay with the brand.
According to The Automotive News, all three of these manufacturers have authorized dealers to do what it takes in order to keep current leaseholders “within the family” and prevent them from jumping ship to car companies which were not as severely affected by the Japanese crisis. A number of incentive programs have been launched, under the radar, in an attempt to appease lease owners who are tempted by the fact that competitors are offering fully-stocked lots while Honda, Toyota and Nissan are struggling to produce enough new vehicles to satisfy demand.
Toyota’s American division (Toyota Motor Sales USA) is offering customers six-month lease extensions as well as a $750 rebate on their next lease from Toyota. Honda’s Honda Promise Program is offering the same six-month extension option as well as a $500 cash offer for leaseholders who stay loyal to the brand and pick a Honda as their next automobile. Nissan’s lease push is not quite as aggressive, but the company is advertising a low lease rate on the Nissan Altima mid-size sedan. Mazda, which has not announced any formal lease incentives, is nevertheless willing to work with customers looking to bridge their leases for a few months longer until new car inventory is back to normal.
Unusual circumstances call for unusual contingency plans, and Toyota, Honda and Nissan are making the best of a bad situation in terms of maintaining the loyalty of their lease customers. Toyota is now projecting that it will be back at full production capacity – at least, in terms of supplying the North American market – by the fall of this year, but some of the other affected automakers might be forced to hold out until late 2011 or early 2012 before they can make the same claims.
Although the lease extension programs could help car companies keep drivers in their cars long enough to account for the slack in new car production, fewer leased vehicles being turned in will have a ripple effect on the already pinched used car market. With a smaller number of high quality lease returns available, used car prices are unlikely to sag any time soon, especially with regards to Certified Pre-Owned automobiles which must pass through strict inspection processes prior to going on sale.