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I was reading about the slowdown and stoppage of some toyota production and was wondering if other manufacturers are increasing production to fill the gap?
Otherwise I would expect fewer deals and generally higher new car prices (which bleeds through into used) due to the shortfall in supply.
My friends at the Lexus store have said everything is straight sticker price now. No deals, take it or leave it. At all the Lexus stores in town.
Production is down to almost nothing. It's a big store, 150-200 cars a month, and their allocation for next month is something like 22 cars, which are almost all pre-sold.
If demand at other companies goes up, I would expect transaction prices to go up too, even if they ultimately decide to increase production to meet demand.
I bought a Honda before the Quake and was back at the same dealership today. The lot had 70% less cars on it. Asked the sales guy about it, he said they are not getting new ones in and they are not going to offer any discounts come next week. They only had a few Accords and 3 civics left.
Yeah prices have risen especially for in demand models. Toyota/Honda brands use a JIT system so they are hurting right now since they traditionally keep inventory much lower than some other brands.
This is odd because with gas prices going up up up up up up the prices on cars should be coming down on any car that doesnt get 30 mpg..
The more fuel efficient models are indeed being squeezed the most. (Same thing happened in 2008 where you could buy used SUV's cheap but a used Civic was a hot commodity.)
However, let's assume someone uses 750 gallons of gas a year....$1 higher gas is only $750 which relative to buying a 30k, 40k etc. vehicle isn't that big of a deal.
Just by having a discussion about buying a new car you have excluded the poorer section of the US economy. Those that remain are less impacted by the cost of gas relative to income.
They'll play the pricing game based on the supply restrictions as long as they can until it hurts sales. The larger dealers aren't nearly as affected while the smaller ones are suffering more do to less inventory to work with. Best thing for a consumer to do is play the waiting game. No reason to spend more for a car today simply because there are supply chain issues that will get worked out.
Guy I know who has a dealershgip said there are plenty of trucks and SUVss but smaller sales are up with the gas pirce rise as usual. He said that the shortage form earthquake has not gotten to dealers yet as its takes months since the inventory of makers is huge.He says more are worried about parts but that is why they are told some production will be shutdown to ensure parts to dealers.
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