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If Car Sales Are Strong, What Does That Mean For New College Grads?

John Curran

Contributing Writer

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1,757 views Mar 16, 2011

Nissan LEAFs arrive in the U.K.

Bloomberg notes that the sales of new cars is really high, as close to the summer in 2009 when people took advantage of the massive Cash for Clunkers discounts put forth by the government. But as we continue to mourn the hundreds lost in Japan, is it worth casting a wary eye towards the Island nation?

Japan is a major trade partner for the U.S., and it's not just Japanese hybrid and electric cars like the Nissan Leaf or the Toyota Prius that are affected by the devastation on Honshu and other islands. The country also produces a number of electronics and other key components for American automakers, too.

So while Japan is preparing for a nuclear disaster that may reach Chernobyl levels, it may be the right time to practice some prudence if you're considering getting a new car with your first job out of college this May. It's true that parts for a number of cars are becoming difficult to find; but the increased demand is an issue.

Specifically, dealer prices are likely to go up due to supply chain issues, as Reuters touches upon in a recent article. And if demand remains high for the compact cars that most college grads consider, that will lead to spikes in price.

I'm sure my readers check up on the international scene as much as I do. Do you think prices are likely to go up in the short term?