root@trwatf.UUCP (Lord Frith) (04/08/85)
I wonder if the end of "Voluntary Import Restrictions" will really have any effect on the price of imported cars (Japanese imports in particular). I read here in the most recent copy of the Washington Post that the end of import quotas should deflate dealer's premiums on these cars by the end of the year. Often the premium means anywhere from $1,000 to $5,000 markup on an imported car (depending upon the car). According to industry analysts this also means that dealers will no longer charge for every little bell and whistle to artificially inflate the price. I wonder. The Japanese will have to come way down on their prices to compete with an expanded market place and with American car manufacturers. That means lower cost to the dealers and little or no dealer premium. But I suspect that dealer's will continue to charge inflated prices for the extra bells and whistles to maintain their profit margins which they certainly don't want to lose. The key here is that every prospective new car buyer should demand (not ask but DEMAND) the lower price that he is due. Hint hint hint.... -- UUCP: ...{decvax,ihnp4,allegra}!seismo!trwatf!root - Lord Frith ARPA: trwatf!root@SEISMO "And he made the stars, too, and the world is one of the stars"
ark@alice.UUCP (Andrew Koenig) (04/09/85)
Lord Frith says: > I wonder. The Japanese will have to come way down on their prices > to compete with an expanded market place and with American car > manufacturers. That means lower cost to the dealers and little > or no dealer premium. But I suspect that dealer's will continue > to charge inflated prices for the extra bells and whistles to > maintain their profit margins which they certainly don't want > to lose. Of course they will. For a while. Then some dealer will realize that chopping prices will attract a LOT more customers -- more than enough to make up for the lost profit on each car. Once a few start, the rest will have to follow. Prices will eventually drift down to where further reductions would not increase profits.