Honda follows Toyota with aggressive lease deals

[March 26, 2010]  NEW YORK (AP) -- Honda is aiming to entice customers with among its most aggressive leasing programs ever after rival Toyota launched its own big program earlier this month.

Honda Motor Co. is offering leases with no down payment, no security deposit and no payment for the first month across nearly its entire lineup through May 3, according to spokesman Chris Naughton.

Heavy incentive spending is not unusual among the Detroit Three. But Japanese automakers typically shy away from deep discounts because of concern that it could tarnish brand value. Honda typically spends the least amount of the major automakers on incentives, according to the automotive Web site Edmunds.com.

However, Naughton said Honda is pushing its leases so aggressively because Honda vehicles typically have strong resale value.

"It would be very accurate to say it's among the biggest leasing promotions we've done," Naughton said.

The promotion, which began at the start of the month, comes on the heels of aggressive incentive programs from Toyota Motor Corp., which is looking to lure back customers after recalling millions of vehicles over faulty gas pedals.

Toyota is offering zero-percent financing and low-priced leases to customers who buy or lease several of its recalled vehicles, including Corollas, Camrys and Avalons.

According to Edmunds, Honda spent $1,249 per vehicle on incentives in February. That's the smallest figure among the six biggest automakers in the U.S. Chrysler Group LLC was the biggest spender on incentives at $5,608 per vehicle, while Toyota spent $1,682 per vehicle.

Toyota's February incentive spending marked an increase from its January figure of $1,452, though it shrank from the $1,833 per vehicle spent in the year-ago period.

[Associated Press]

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