If you’re in the market for a used Subaru it may be prudent to hold off for a while. Since the Japan earthquake, Japanese auto makers have been struggling to maintain supply chains to manufacture their vehicles. Even though many are built in the United States, they still rely on parts built in Japan.

It appears now we’re nearing the peak of the effects of the shortage.

Due to this, dealers have fewer new cars to offer the public. In order to maintain their inventory, dealers have been much more agressive in their pursuit of the used car market. Rental returns, lease returns etc. are sold to dealers at wholesale auctions. Because of demand, dealers have been competing with each other and paying much more than they were once willing to spend to acquire a used car. This pushes up the cost thus pushes up the retail price. From there it’s trickle down economics. Higher demand, higher cost, higher prices.

Now, if you have ever been thinking of selling your Subaru you may be in for a pleasant surprise. Some of the used Subarus have seen as much as a 10% increase in value over the past year.

So to sum it up:

Buyers, be patient, things should be caught up by January of next year.

Sellers…. Strike while the iron is hot.

Cheers,

Mike