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18
Feb

Are Honda and Acura Used Cars Soon to Be in Short Supply?

If you are in the market for a used Honda or Acura vehicle, the search may become more of a challenge and in the very near future.

Many folks do not realize that the BIG 3 US Automakers are under contract with the UAW,  to assemble a certain number of vehicles, regardless of market conditions. This is a very good example of insanity.

If something isn’t selling fast enough, smart manufacturers don’t continue to make more and more of the same product.

  • They adapt their product to meet market trends.
  • They adjust their prices to meet market demands.
  • They adjust production volume in a good market  to avoid a product shortage
  • They adjust production volume in a down market to avoid a surplus.

These are textbook supply & demand principles that a first grader could understand!!!

With that said, the car buying public should be aware of the following…The non-union vehicle assembly plants are reducing production to avoid a market surplus. These assembly plants include:

  • Honda / Acura
  • Toyota / Lexus
  • Nissan / Infinity

Take a look at the photos below. These are some headlines from the Febrauary 2009 issue of Dealer Trade News that I picked up at the auto auction.

As Ford, GM and Chrysler continue to use our Federal tax money to pump out vehicles to further choke the new car market; the non-union car manufacturers will be adjusting to a lower production output. My prediction is that within a few months there will be an even greater shortage of used Honda and Acura vehicles. The reason is very simple. Thousands of vehicles are wrecked, flooded, and  replaced each day across the U.S. With many vehicles being replaced because of wrecks, weather, wear and tougher emissions standards;  the used car market will be affected very quickly. Just 7 weeks into 2009, our dealership has already seen a significant upswing in the dealer wholesale prices of used Honda and Acura vehicles and that trend is likely to continue.

The shortage of Asian vehicles in America will likely increase the U.S. market demand which will result in used Honda and Acura vehicles being more expensive with far less depreciation than Ford, GM and Chrysler. With the BIG 3 not selling as many vehicles as they are producing, the value of a domestic vehicle will be lower and depreciation will be nauseating to the consumer that purchased a brand new Ford, GM or Chrysler product, just a few months earlier. With the sales of the domestic vehicles being stagnant, the quality of the domestic vehicles is also likely to suffer…..again.

At www.accuratecars.com we will continue to serve our customers, by being the best place in Nashville and Middle Tennessee to purchase and service pre-owned Honda & Acura vehicles.

Always expect Certified Quality in all of our Honda and Acura vehicle inventory.

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