Will Consumers or Automakers Break First?

Unless something changes, mainly speaking of the automakers starting to offer some huge discounts on the cars that they are trying to sell to consumers, most analysts are pointing out that the sales for the rest of the summer are likely to mimic what has happened in May. Which was fewer sales due to consumers wanting to find a better deal on the vehicles that they are considering buying. So basically, the auto market is kind of stuck in a rut right now. Consumers are not buying, and automakers are not comfortable in offering any kind of incentive for people to buy. 

 

The reason for this is all being blamed on the earthquake that hit Japan and made supply lines suffer. From this point on, most automakers were basically putting what they had to offer on the lots. If the consumer tried to negotiate terms, the dealers let them walk. At that point in time, the shortage of cars meant people were paying full price for everything, which is something that the dealers and automakers were loving since it meant getting full price for everything. But now, as supplies are starting to grow, most people want those deals that they got in the past. 

 

So the question is, who is going to break first? Are automakers going to start pulling out incentives in order to sell their vehicles or are consumers simply going to pay the price for these cars, no matter how high it is? Most analysis are opining to the fact that consumers are going to be the first to break. The reason being is that they are going to get tired of having to wait and simply want to get the new car that they have been dreaming of having. And with the high gas prices, for those that are looking for more fuel efficient vehicles, then they are going to want to make sure that they are getting them now to help offset fuel costs.

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