Quote Originally Posted by BIG WORM View Post
this was all part of an assignment in my Econ class, this was my response.

b) The price of a new Toyota will also stay close to the same. Remember, dealers purchase the vehicles direct [from Toyota], then sell to the public. The cost of production for Toyota to build a vehicle is not going to decline, therefore nor will its price. However, Toyota will experience a decline in sales, forcing the dealers to lower the price, offer incentives, and even loose money on the deal, just to unload current inventory; which may mean a drop in price [From the dealer, not Toyota] for the consumer.
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They already hinted at this on the news..... if you are in the market for a new Toyota, soon will be a good time to buy.....dealers will be willing to heavily discount in order to move inventory....