Despite shortages, there are some surprising bargains on Japanese products, such as the 2011 Honda Accord.
Think you’ll be paying thousands more for a new Japanese car due to the current shortages? Not necessarily — at least not if you’re ready to do your homework.
The Japanese earthquake of March 11 has played havoc with the auto industry, as most anyone who has shopped for a Toyota, Honda or Nissan, in recent weeks can attest to.
Though production is slowly returning to normal, most Japanese makers have had to curtail factory operations due to parts shortages, since the disaster struck. In the near-term, manufacturers will likely fall more than a million vehicles short of their original production plans.
That has translated not only into shortages of popular models, like the new 2012 Honda Civic, but into sharply higher prices. The data service Edmunds estimates that American shoppers are now paying nearly $3,000 more for a Toyota Prius than they did before the earthquake.
The shortages and price hikes have been a boon to the competition, notably including Detroit and Korean makers. Hyundai can barely keep up with demand, while the Chevrolet Cruze soared to the top of the compact segment sales charts, nudging aside perennial winners Civic and the Toyota Corolla.
Nonetheless, that doesn’t mean Japanese car buyers are completely out of luck. A search of the latest sales data reveals that there are some unexpected bargains to be had at Japanese-brand dealerships.
“The perception is that consumers should be in a holding pattern if they are looking to buy Japanese vehicles because of supply constraints and higher prices but an abundant amount of vehicles are available and being discounted,” said Jesse Toprak, VP of Industry Trends and Insights for the data service TrueCar.com.
The 2011 Mitsubishi Endeavor, TrueCar found, is going for an average $22,645, or 22.2% below its sticker price. Dealers are getting an average $15,323 for the Mazda3, a 7.7% discount.
Some of the biggest bargains can be found at showrooms representing smaller Japanese makers, where demand has often lagged behind bigger, better-known brands. But even the Japanese leaders are offering some unexpected discounts. The 2011 Nissan Titan is going for an average $23,367, according to TrueCar, 17.7% below its MSRP. And even the 2011 Honda Accord, traditionally among the most popular midsize sedans, is being discounted by an average 5.2%, to $21,766.
“If you’re looking to purchase a vehicle, consumers should walk into the dealership having done their research knowing the best price available to them in their area,” cautioned TrueCar’s Toprak.
That’s true even of models in short supply, like the Civic, as prices will vary widely from dealer to dealer, not all retailers looking to make the most of a bad situation.
How long the shortages will continue remains to be seen. Toyota last week noted that it is boosting production faster than it originally feared, but still won’t be fully up to speed until late 2011. (Click Here for more.) Honda, meanwhile, warned that production of the 2012 Civic won’t be normalized until “sometime in the fall.”
The good news is that Japanese makers took an even bigger hit than they anticipated in May, partially because they cut corporate discounts following the earthquake. Toyota, for one, announced a new round of incentives to try to lure buyers back into its showrooms.