Getting a Good Deal at the Dealership is Getting a Good Bit Harder These Days
Well, auto industry analysts and economists have been saying it all along, there will be shortages of the top selling vehicles at the dealerships this summer (2011), and it's already happening.
Why you ask? Well, consider if you will the parts problem in the supply chain for all the Japanese automakers, and there are some Japanese components, including paint pigment, in US automaker cars as well.
Now, there are challenges with parts coming from China too.
Oh, you didn't hear about that? There have been power outages due to the drought, and the Chinese cannot let anymore water out of the dams to run the hydro-electric power plants at full-tilt (some power outages), and there is a little bit of civil unrest with inflation and workers pay, which we don't hear too much about here in the USA.
Okay so, is all that enough to cause car shortages here in the states? Yes, and no, but there is more to this story.
Due to the Hurricanes, Floods, and other natural disasters here cars are in big demand, used car auto-auction prices have almost doubled from last year this time, and new car dealers are running short of their top selling models too.
There was a very interesting article recently in the LA Times titled "Chevy Volt Dealers Inflate Prices, Take Tax Credits" by Tiffany Hsu published on June 3, 2011, which stated; "Car sales may be in a slump, but the hybrid-electric Chevrolet Volts are hot, and that's leading to shortages -- and in some cases extreme dealer markups.
Several dealerships have priced new Volts more than $20,000 above General Motors's suggested $41,000 retail tag.
Others are selling the vehicles as used, claiming a $7,500 tax credit for themselves and leaving the eventual buyers ineligible.
And there's not much that GM or regulators can do about it.
Yes, that's another problem, with high fuel prices everyone wants efficient compact cars, which get decent mileage, hybrids, or even all-electric cars.
And there are waiting lists, 18-months for a Prius now, and not only foreign cars, as noted above, the Chevy Volts are going for a premium as well.
What does all this mean? It means for the car buying consumer, getting a good deal at the dealership is doubtful and it's getting just a tad bit difficult I tell you.
Indeed, I surely hope you will please consider all this and think on it.
If you are going to buy a new car, shop around, but don't wait around too long.
Why you ask? Well, consider if you will the parts problem in the supply chain for all the Japanese automakers, and there are some Japanese components, including paint pigment, in US automaker cars as well.
Now, there are challenges with parts coming from China too.
Oh, you didn't hear about that? There have been power outages due to the drought, and the Chinese cannot let anymore water out of the dams to run the hydro-electric power plants at full-tilt (some power outages), and there is a little bit of civil unrest with inflation and workers pay, which we don't hear too much about here in the USA.
Okay so, is all that enough to cause car shortages here in the states? Yes, and no, but there is more to this story.
Due to the Hurricanes, Floods, and other natural disasters here cars are in big demand, used car auto-auction prices have almost doubled from last year this time, and new car dealers are running short of their top selling models too.
There was a very interesting article recently in the LA Times titled "Chevy Volt Dealers Inflate Prices, Take Tax Credits" by Tiffany Hsu published on June 3, 2011, which stated; "Car sales may be in a slump, but the hybrid-electric Chevrolet Volts are hot, and that's leading to shortages -- and in some cases extreme dealer markups.
Several dealerships have priced new Volts more than $20,000 above General Motors's suggested $41,000 retail tag.
Others are selling the vehicles as used, claiming a $7,500 tax credit for themselves and leaving the eventual buyers ineligible.
And there's not much that GM or regulators can do about it.
Yes, that's another problem, with high fuel prices everyone wants efficient compact cars, which get decent mileage, hybrids, or even all-electric cars.
And there are waiting lists, 18-months for a Prius now, and not only foreign cars, as noted above, the Chevy Volts are going for a premium as well.
What does all this mean? It means for the car buying consumer, getting a good deal at the dealership is doubtful and it's getting just a tad bit difficult I tell you.
Indeed, I surely hope you will please consider all this and think on it.
If you are going to buy a new car, shop around, but don't wait around too long.
Source...