Will Toyota increase incentives to lure in customers?

Updated

Thinking about buying a car? You may benefit from Toyota's recent recall troubles. The beleaguered car maker is considering offering larger incentives and an extended warranty program to try and lure customers back following its largest recall ever.

Toyota is talking with its U.S. dealers about a number of options, including adding $1,000 to its current $1,000 cash incentive to returning Toyota customers. Toyota's current $1,000 program matches incentives offered by General Motors, Ford, Chrysler and Hyundai.

Other options could include a free maintenance program -- such as oil changes and regular checkups -- and a new warranty program that would match Hyundai's 10-year, 100,000-mile powertrain warranty.

Currently Toyota offers a five-year or 60,000 miles powertrain warranty, plus three years of basic warranty coverage for "all components other than normal wear and maintenance items."

Toyota's U.S. sales dropped 16% in January to their lowest levels in more than a decade, after it suspended sales of top-selling vehicles subject to safety recalls, including the Prius, Camry and Corolla.

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