[net.auto] End to import quotas...

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.