Dismal sales figures have led Toyota to take desperate measures. With a 36% drop in December 2008 sales Toyota is hoping cash incentives for customers and dealers will help improve sales.  Jalopnik reports Toyota is dropping prices on the popular Camry and Corolla. It will also offer cash incentives on the Prius for the first time.

The savings?

• Toyota Prius: $750 in dealer cash
• Toyota Camry: $1,000 in customer rebates and $500 in dealer cash.
• Toyota Corolla: $1,250 to $1,500 depending on the trim level.
• …
• Toyota Tundra: $4,000 customer cash for a 2008. $2,000 for a 2009.

With the 2010 Toyota Prius just around the corner a report by Bloomberg.com makes me wonder how cheap the current Prius will go.