Mid-year car price increases

In recent years domestic car manufacturers have often increased prices a number of times over the course of the model year. Though the price increases were usually small, performed three or more times during the year they could add up.

2011 Infiniti QX56This year, though, GM, Ford and Chrysler haven’t increased prices nearly as often, or as much. Perhaps they really are trying to sell cars with lower incentives. In the past, when they increased priced they often had to subsequently increase the rebate as well, so there was no net gain anyway.

Instead, foreign car manufacturers have been more likely to raise prices. Especially if they’re Japanese they might be reacting to the strengthening of the yen.

Most of these increases remain minor. Hyundai didn’t change the MSRP on many models. (One exception: a $200 increase for the strong-selling Sonata.) But they bumped many invoice prices by a mere $14 and some destination charges by $30 to $50. The change is so small, why bother?

The most aggressive case I’ve come across so far: Infiniti. All Infiniti cars are made in Japan, so the strengthening of the yen no doubt has had a severe impact on their profitability. The price of the most popular Infiniti models has gone up about $1,000. The large QX56 SUV, which costs twice as much, went up an even $2,000.

The dollar has been weakening for a few years running, and I’ve been wondering how long foreign car manufacturers would be able to hold the line on prices. A full adjustment would require massive price increases of $10,000 or more. Maybe they’ll get there $1,000 at a time? Or will people be unwilling to pay the higher prices, so they’ll have to back off?

There is one way to take advantage of these price increases, if you’re aware of them: find a car from before the increase on a dealer lot. It’ll still have the old price, so you’ll pay less for it.