The number of 2010s listed on cars.com continues to climb, today reaching a high of 19,064. (How do cars get added to and taken off of cars.com. It's all voluntary, by the dealers themselves?) Dianne tells us she has her first 2011 allocations, that there are 2011s bobbing about on the briney blue, as we speak. Yet for the last couple of months Toyota's incentives, both for the dealers and the customers, are unchanged. Ironically, while I sit here in front of my Mac, bottom fishing for a Blizzard Pearl, stripped II... after several years of retirement, I've been called back to teach a section of Macroeconomic Principles. There it is: Page 122 of McConnell's Economics, latest edition, "Computerized Inventory Tracking Has Greatly Accelerated How Quickly Companies Can Respond to Unexpected Changes in Demand." Surely the arrival of the 2011s is not "unexpected." Maybe when we see 2010 and 2011s sitting on the lot, side by side, we'll see a significant drop in 2010 prices, and a consequent drop in 2010 inventory... hint, hint, hint. BTW, the text uses "Prions" as its example of "sticky prices."
We just bought a 2010 (used) from Hertz with 21K miles on it, for $17,900 plus tax and registration. Not worth it to us to pay a few thousand dollars extra for a brand new one.
i think the dealers are between a rock and a hard place. they can't go much lower on price and they aren't moving much inventory. what can you do but sit on your hands and try to keep expenses down?
Bosch in Norwood (MA) is offering Priuses signed by Bon Jovi (70 in stock)... maybe Dianne (80 in stock) will offer John Elway's signature? :cheer2:
we're doing the same in our business. keeping expenses as low as possible, trying to limit layoffs, using workshare. you can't fix the economy, you have to ride it out. been there, done that, 1989-92.
Prices may be coming a little "less sticky." As noted in another thread, earlier this week Toyota Canada began offering Ca$3000 Customer Cash Incentive on their leftover 2010 Priuses: TOYOTA CANADA : Promotions > National Promotions Note 1: At current exchange rates, Ca$3000 is just over US$2900. Note 2: There are still over 19,300 2010s shown by cars.com on U.S. dealers' lots. Consequently, with the 2011s beginning to arrive, we may start seeing dramatic price reductions on "our" leftover 2010s. Eh? :rockon:
