• by Karl Greenberg , October 6, 2008

After a disastrous September, automakers have no reason to expect miracles this month, as the Dow slipped beneath 10,000 points for the first time in four years, and the media are awash with stories of fearful consumers.

Toyota--which got hammered last month--is launching its largest-ever incentive campaign. The company that has traditionally used tactical incentives focused on specific vehicles in specific markets is, for the first time, offering 0% on nearly its full range of Toyota-brand vehicles. Hybrids, not surprisingly, are excluded, as are the sub-compact Yaris and limited-volume Land Cruiser.

The 0% offer for between 36 and 60 months is for Matrix, Corolla, Camry, RAV4, Highlander, FJ Cruiser, 4Runner, Sequoia, Sienna, Tacoma and Tundra. Of those, eight are SUVs or trucks.

Company spokesperson Xavier Dominicis says that while Toyota has offered 0% financing in the past, "this is unprecedented in scope. But extraordinary times call for extraordinary measures."

Toyota posted a 23.7% decline in sales of Toyota division passenger cars and a 36% decline in sales of Toyota trucks.

Dominicis says the effort is also intended to correct the idea that in this environment, leasing and loans are not to be had. "One thing we get is that consumers are under the impression that financing is hard to come by. But we are in business to finance, and we haven't abandoned leasing."

"Not only do we have the inventory of today's sought-after fuel-efficient models, but we have the capacity through Toyota Financial Services to finance or lease them," said Toyota Division General Manager Bob Carter, in a release.

He adds that Toyota is running a TV ad with a "Saved by Zero" theme on national TV buys--also unusual for Toyota, which usually relegates deal offers to online and local and dealer media.

Other automakers are upping financing deals and discounts. General Motors relaunched 0% financing in June, offering 72 months on most of its models through the end of that month. Chrysler this month began offering 2008 model-year inventory with discounts and low interest rates.

Stephen Berkov, executive director of client strategy at Edmunds.com (and former director of marketing at Audi), says there is a silver lining to the brutal market. "I'm bullish because it will give every automaker a chance to be reconsidered," he says. "That people are doing research before they buy based on lease prices, fuel economy and technology has allowed brands stuck under the ice to emerge," he says. "The less-considered brands are trying to gain consideration, and online research is helping them."

He says the economy has created a different perspective on brand value. "Until 2007, it was so much about the badge, the brands; 'more is more' was the rule--now the core of what's becoming important is truth and progress. People want to be informed, make smart decisions and be able to tell their friends why. It's the Infobahn versus the Autobahn."