Weak dollar means higher used car prices?

Wanna buy a Hummer? You can buy them as cheap as dirt these days. There was a beautiful one that went through the block at a weekly public auction in Oakwood, GA. Nice leather interior. Well kept. The H2 models in particular were an easy piece to market and sell not too long ago… but not last Thusday. It no-saled. Not even the hope of a bid at $13k. Then came the H3. No sale at 10k. No takers. Only two no-sales from new car stores that generally sell everything. Why?

Big Wheels
Creative Commons License photo credit: jurvetson

Exporters send high demand Japanese SUV’s far away from our depressed domestic economy. Thus enjoying the simple returns that come with weak US dollars and less shaky local currencies. Even with customs, duties, and tariffs to contend with, they make a solid profit. Ghana, the United Arab Emirates, Costa Rica… even Nigeria. Japanese SUV’s with American levels of features and content are a red hot commodity in dozens overseas markets.

The funny money that is the US dollar has gradually made all the auto auctions fiercely competitive. Dealer sales. Salvage sales. Even the public sales are now export happy.

Auction Monday: Oakwood,” by Steven Lang, The Truth About Cars, May 2, 2011

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