As gas prices increase and production in Japan slows time is running out for some consumers. Import dealers are starting to see their pipeline days supply get smaller and guess what? The average sale price on fuel-efficient cars has increased and it seems customers are ok with it. It’s starting to feel kinda of like how new car customers acted during Cash For Clunkers. I think things will get very interesting over the next few months. Will manufactures continue with the aggressive incentives that we have become accustom to? How much market share will the domestics pick up during the rebuilding phase in Japan? Will Toyota ever catch a break?
The media helps add urgency
Times have changed or have they?
In the last fifteen years I have seen a lot of changes in the car business. Some changes have been big while others just seem to be minor. As a finance Manager in a high volume dealership in the nineties I remember that we offered just a few items and now it seems the list is huge. Back then we had extended warranties, credit life and accident and health insurance. Now we have Lojack, Skylink, Diamond Dots, paintless dent repair and tire and wheel warranties to name a few. Good credit customers would object in the 90′s at rates of 7 to 9 percent now they say I want lower than 3 percent. However, back then they wanted a New car for $250 per month with no money down and now they still want $250 per month with little to no money down. Retail prices have went up but margins have went down. The internet has removed the mystery of dealer cost and invoice. Now we must be transparent and committed to customer satisfaction or they will post their experience on Facebook, Dealerrater, Yelp and give us a one star rating on Google for all to see. As we race into the future how will things like mobile websites, tablet pc’s and video conferencing change the car business? Time will tell but I am ready to get in and buckle up.
Media keeps talking about radiation
All Toyota plants in Japan are 350 miles south of the zones designated for evacuation by the Japanese and United States governments.
