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Buy now: APA

The Automobile Protection Association (APA) says now is a good time to buy cars. Uncertainty over supply of both new and used vehicles will affect the fleet and consumer markets in North America in coming months.


April 26, 2011
by Purchasingb2b Staff

FLEET MANAGEMENT: MARCH/APRIL 2011

The Automobile Protection Association (APA) says now is a good time to buy cars. Uncertainty over supply of both new and used vehicles will affect the fleet and consumer markets in North America in coming months.

The natural disasters in Japan have interrupted the production of automobiles and some components, and will complicate the shipping of vehicles, due to damage sustained to ports and other transportation infrastructure in northeast Japan.

New vehicle inventories are currently large in Canada, but supply constraints could see some of the generous rebates on Canadian-market vehicles disappear as spring turns into summer. APA expects the supply of North American-built vehicles from the Japanese automakers to continue to be good.

The association says the used car market is entering a period of more restricted supply that will see prices rise. Ford, GM and Chrysler virtually stopped leasing new vehicles three years ago as of July 2008; consequently, the supply of late-model lease return vehicles for their brands will dry up. This will drive up prices across the used car market, as dealers look at import brands to close the gap.