Dealers Say Fewer Cars, More Margin

Big car franchisees are preparing for the impact of the Japanese earthquake on thier businesses; namely, they anticipate receiving fewer cars but selling at higher margins.

AutoNews reports two publicly traded dealers observing:

AutoNation COO Mike Maroone: "There is margin opportunity in small cars through greater content. If you look at Ford, they have pricing and content opportunities. There is a tremendous demand for small cars, and there is limited availability."

Jeff Dyke, Sonic Automotive Inc.'s executive vice president, said his company expects prices of new and used Toyota-brand vehicles to rise in the next couple of months as supplies dwindle. He said that Lexus vehicles already were retailing for about $1,000 more per unit on the West Coast than they were earlier in the year. The company is also seeing wholesale prices jump $1,000 to $2,000 on used Honda and Lexus vehicles, Dyke said.