Panic Purchases Are Side Effect of Japan Quake

Fear of short supplies and high gas prices are the main reasons, but neither should influence most car shoppers. Why?

Hybrids like the Prius make up their additional costs faster when gas prices are higher. There’s a good chance that gas prices will retreat in the next year, much like they did after $4 gas in 2008. There’s no denying, though, that a $22,000 Prius will cost you half as much at the pump annually as a $22,000 Hyundai Sonata, or about $1,000 a year at $3.57 a gallon. Gas prices have fallen slightly the past few days to $3.54 nationally.

However, dealers say they are only left with more expensive Prius models. The most expensive Prius left in Cars.com’s national inventory is $34,210. Only 288 are currently listed on Cars.com, an extremely low number. Short supply with higher demand also means dealers will be less likely to offer discounts on these specific models. Honda has also told its dealers that it will suspend ordering of new vehicles assembled in Japan scheduled for May assembly. Most Hondas are assembled in North America. But the Fit, CR-Z and Insight, as well as the Acura TSX and RL, are not.

However, many analysts predict we won’t know the full impact of the quake for a few weeks and that even cars assembled in the U.S., like the Civic, might be delayed.

Should buyers just sit and wait until the supply chains are fixed and new models flow normally again? If you want a deal on a Prius, then yes. But that is a very unique model in today’s landscape of globally sourced cars.

There are solid supplies of most cars assembled in Japan on lots today, and many cars that rely on Japanese parts are readily available now, too.

We will likely see diminishing supplies in the next few months, but they shouldn’t reach panic levels. You just might not get as good a deal, or the exact color or equipment you want on specific popular models. And there may be no noticeable impact on supplies from South Korean automakers like Hyundai and Kia or German nameplates like Volkswagen or BMW.

Panic Buying Raises Prices on Prius, Fit (USA Today)