Edmunds.com Warns New Car Shoppers: Typical Summer Deals May Not Be Available This Year
SANTA MONICA, Calif. — April 8, 2011 — The threat of supply shortages and ensuing price increases in the next few months should motivate car shoppers to buy or lease their next new car now rather than waiting for typical summertime deals, says Edmunds.com, the premier online resource for automotive information.
"Any production disruptions caused by the devastation in Japan have yet to be felt directly, but savvy consumers realize that it makes sense to buy sooner than later," said Jeremy Anwyl, CEO of Edmunds.com. "Given the situation in Japan, we expect that product shortages could arise for some models beginning in May. This year, it won't make sense for car-shoppers to wait until summer to get the best deals."
In the last decade, July has been the best month for incentive discounts on a new car or truck, according to Edmunds.com's True Cost of Incentivessm (TCIsm) data. Last year, the average discount in July was 14.1 percent off sticker price, the highest percentage of the year.
But in an uncertain automotive industry in the wake of last month's Japanese earthquake, Edmunds.com analysts say it is realistic to expect summer inventory shortages that will eliminate the need for heavy discounting. Honda, Nissan, Toyota and Mercedes-Benz already appear to have unseasonable drop-offs in inventory, according to inventory data evaluated by Edmunds.com's analysts. Honda is suffering the most: all four of Honda's top-selling models — Accord, Civic, CR-V and Insight — showed steep declines in inventory compared with last month.
For more on the effect of the Japanese earthquake on automakers, please see http://www.autoobserver.com/2011/03/weakened-supply-chain-may-halt-production.html
For more information on incentives, sales and shopping trends in the automotive industry, please visit Edmunds.com's Data Center at http://www.autoobserver.com/car-data-center/.
About Edmunds.com, Inc. (http://www.edmunds.com/help/about/index.html)
Edmunds.com Inc. publishes Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site and hosts the most established automotive community online. Its mobile site, accessible from any smartphone at www.edmunds.com, makes car pricing and other research tools available for car shoppers at dealerships and otherwise on the go. InsideLine.com is the most-read automotive enthusiast Web site. Its mobile site, accessible from any smartphone at www.insideline.com, features the wireless Web's highest quality car photos and videos. AutoObserver.com provides insightful automotive industry commentary and analysis. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit. Follow Edmunds.com on Twitter@edmunds and fan Edmunds.com on Facebook at http://www.facebook.com/edmunds.