Here’s What Consumers Can Expect At Their Next Car Dealership Visit
Lori Ann LaRocco conducts the following interview:
If you’re in the market for a used Asian car you will need to dig a little deeper into your wallet. With Toyota (NYSE:TM) shipments slowing down, dealers are not only putting a premium on existing new models on their lots, but the sticker price on used autos are also going up as well.
I asked Jesse Toprak, VP of Industry Trends and Insights into TrueCar.com on what consumers can expect the next time they enter a dealer show room.
LL: With delays of models coming in from Japan. Sources tell me the prices of Japanese used cars will be going up. Is that true and by how much?
JT: Used car prices are expected to rise between 5 to 10 percent. That increase really depends on the availability of new models. So, if supply on the new car market dwindles, by model, such as if the new Toyota Prius (which we all knows has supply issues), that will help raise the prices of used Toyota Priuses.
The Prius is expected to be impacted the most, in terms of pricing, with a rise in price by 10 percent. Most other fuel-efficient models will possibly be impacted but closer to 5 percent. In addition, we’re still seeing a shortage of supply in the used car market over the past few years, which has also helped increase used car prices.
LL: What models do you expect to see such increases?
JT: The models that provide the best fuel economy have been hardest hit by the Japan earthquake/tsunami. In addition to the Toyota Prius (NYSE:TM), Honda Fit (NYSE:HMC), Honda Insight, Subaru Impreza and Subaru Forrester will also see price increases.
Virtually all luxury Japanese brands are made in Japan (NYSE:EWJ), which means we could also see some increases, such as Acura, Infiniti (NSANY) and Lexus.
LL: How much do Japanse used cars account for the used car industry?
JT: 35 to 40 percent of all cars sold on the used car market are Japanese vehicles.
Lori Ann LaRocco is a Senior Talent Producer at CNBC, and author of “Thriving in the New Economy:Lessons from Today’s Top Business Minds.”
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