The disaster in Japan has given a beating to global automotive production; we have already heard about the numerous parts shortages causing plant shut downs. Now, U.S. dealers are starting to worry about their supplies of popular models produced in Japan.
Model such as the Toyota Prius and Yaris and the Honda Fit and Insight will lose many of the rebates car buyers have grown accustomed to. These smaller cars generally carry a five to 10 percent discount off of the manufacturer’s suggested retail price (MSRP), as well as rebates and zero-percent financing rates.
With closings and delayed shipments, there is concern over the supply levels of small cars and hybrids, many of which are either completely assembled in or have most of their parts coming from Japan. As gas prices continue to rise in the U.S., the popularity of these fuel-efficient cars will rise too.
While speaking to the The Detroit Free Press, Jesse Toprak, the vice president of industry trends and insights at TrueCar.com — a site that tracks what cars sell for at dealerships — points out that dealers will expect higher demands on cars as their supplies from Japan decrease; dealers will then stop cutting deals on those cars.
The Detroit Free Press notes that it has been rare in recent years that a car buyers would pay MSRP between discounts, financing, and negotiation, but dealers are now worried that demand will outpace the supply. How would a decrease in incentives change your thoughts on buying a certain car? Let us know in the comments section below.
Source: The Detroit Free Press