Dealers raise some car prices after Japan crisis

DETROIT (AP):

The disaster in Japan could slow shipments of popular cars like Toyota's Prius to auto lots. And many dealers are already taking advantage of expected shortages to raise prices.

Buyers will now typically have to pay sticker prices, instead of enjoying discounts that had been the norm for small cars and hybrids imported from Japan. Besides the Prius, models that suddenly cost more include Honda's Insight, Fit and CR-V; Toyota's Yaris; and several Acuras and Infinitis.

Small cars such as the Yaris, with a US$12,955 sticker price for a base model, and the Honda Insight, priced at US$18,200, are losing their typical discounts of 5 per cent to 10 per cent.

The price increases "will last weeks, if not months," says Jesse Toprak, vice-president of industry trends and insights for TrueCar.com, a website that tracks what cars sell for at dealerships.

Dealers are acting on the possibility that disruptions in car deliveries from Japan will cause a shortage of higher-demand vehicles. Demand will exceed supply.

So they won't cut deals on those cars, Toprak says.

Car buyers rarely pay sticker price, also known as the MSRP or Manufacturer's Suggested Retail Price. Companies typically offer discounts of a few hundred to a few thousand dollars off the MSRP. Many also provide low-rate financing.