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How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.

J.D. Power study sees new car dependability problems increase for first time since 1998

For the first time since 1998, J.D. Power and Associates says its data shows that the average number of problems per 100 cars has increased. The finding is the result of the firm's much-touted annual Vehicle Dependability Study, which charts incidents of problems in new vehicle purchases over three years from 41,000 respondents.
Looking at first-owner cars from the 2011 model year, the study found an average of 133 problems per 100 cars (PP100, for short), up 6 percent from 126 PP100 in last year's study, which covered 2010 model-year vehicles. Disturbingly, the bulk of the increase is being attributed to engine and transmission problems, with a 6 PP100 boost.
Interestingly, JDP notes that "the decline in quality is particularly acute for vehicles with four-cylinder engines, where problem levels increase by nearly 10 PP100." Its findings also noticed that large diesel engines also tended to be more problematic than most five- and six-cylinder engines.

Honda issues bizarre non-recall on Odyssey over badge placement

Without looking under the hood or at a vehicle history report, one of the easiest way to tell if a car has had body work done is to check the location and placement of the exterior badges. A crooked, misplaced or missing badge can be a telltale sign that there has been some sort of body or paint work. For this reason, Honda is suggesting that some owners of the 2014 Odyssey take their vans into the dealership for a little rebadging.
The topic was brought to light after Consumer Reports received a notice from Honda saying that the "Odyssey" badge on its test vehicle was incorrectly installed at the factory. The badge is supposed to go on the driver's side of the liftgate (as shown above), but the customer vehicles had it placed on the passenger side of the car. Not a huge deal unless an owner is trying to sell the vehicle and the improperly installed badge leads potential owners into believing the vehicle may have been damaged in some way. Here's what Honda said in its letter:
On some 2013 Odyssey vehicles, the Odyssey emblem was incorrectly installed on the passenger's side of the rear tailgate. The emblem should be installed on the drivers' side of the rear tailgate. American Honda Motor Company highly recommends that you participate in this Product Update. The placement of the emblem may indicate that the vehicle has had repairs performed that are consistent with it being in a crash. This could affect the resale value of the vehicle.