Toyota starts offering $2,000 incentives on Prius to counter dwindling tax breaks

Toyota sold a bunch of Prius hybrids last month but now the company is offering $2,000 in discounts at the dealership. The move comes on the heels of fewer tax credits available to Prius shoppers. The discounts range from $600 to $2,000 for features such a navigation, hands-free mobile phone connection and rear-view cameras. Toyota earlier offered low-cost lease options and no-interest financing packages. The automaker is looking to boost Prius sales 64 percent this year with a goal of 175,000 units.

Toyota sold 19,156 Priuses in March. That's up from 7,922 sold in March 2006. The federal tax credit for the Prius dropped in half to $1,575 last year and is now down to $787. The federal credits run out after October 1.

[Source: Bloomberg]

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