Japan Disaster Affecting Auto Supply
Who could have predicted that an earthquake, tsunami and nuclear meltdown would hit a region so integral to the automobile market?
June 23, 2011
As most of you know, Japanese imports have been seriously impacted by recent events. Who could have predicted that an earthquake, tsunami and nuclear meltdown would hit a region so integral to the automobile market? According to Automotive News, there has been an immediate impact to Japanese nameplates, with Toyota, Honda and Nissan projecting a 20-24% percent negative impact to inventory. While not as severely affected, domestic car makers are also impacted as many parts manufacturers, and even producers of car paint pigment, are of Japanese origin.
The law of supply and demand is in full effect and we have seen the disappearance of incentives and rate subvention and the reappearance of the “additional dealer markup” sticker. Autoland is still able to provide inventory at fair market pricing to credit union members because of our relationships with dealers. Pre-owned vehicles are also at a premium with values changing weekly. On the upside, this benefits your members with trade-ins, as their vehicles should have strong value.
In summary, though there may be some rough times for vehicle inventory over the next few months, best practices by your institution and Autoland’s continued dedication to drive loans your way by serving members’ automobile buying needs will be a winning combination.
Questions? Contact Sales & Marketing Associate Craig Reed: 206.340.4789, firstname.lastname@example.org.