May 17th, 2011 by Ross Edwards
The Earthquake that hit Japan in March is already starting to impact vehicle sales in America. Many vehicles set to be shipped across the Pacific to Japan were destroyed, the ports they were to ship out of were ruined and now the factories are crippled or without parts to assemble vehicles. In short, many Japanese car companies can’t supply enough cars.
This month, AutoWay Lexus of Tampa Bay only one Lexus RX350 (shown here) scheduled to arrive in the next few weeks. That dealership typically sells about two dozen Lexus RX350 SUVs per month, according to TampaBay.com. Buyers looking for new cars this summer might find none available at dealerships.
“Do the math, we are going to be out of certain models at some point,”AutoNation CEO Michael Jackson told the Wall Street Journal.
The vehicle shortage comes at the worst time for dealers, just as gas prices are rising and customers are flocking to dealerships trying to find a fuel-efficient replacement car. Dealers were also hoping that this year would bring an increase in sales. While signs point to customers being willing to purchase this year, a lack of supply could stop sales from growing.
Incentives have also suffered as a result of the vehicle shortage. In April, Toyota offered eight different vehicles with 0% interest rate financing incentives. In May, there are six vehicles being offered with the no interest incentives. Expect that number to drop dramatically as the summer goes on. Buyers interested in getting the best deal on Japanese cars should shop in the coming weeks before the deals and the cars are gone.