Earthquake continues to disrupt automobile market months later

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The devastating Japanese earthquake this spring continues to send ripples through the automotive industry, causing prices to increase. The average price of a new car is up $350 this year, according to Edmunds.com.

Not only did Japanese carmakers stop production, but parts shortages have forced other car manufacturers to slow down, Forbes reports. This is causing dealerships to have lower inventories and offer fewer incentives.

Worth the wait

Some experts believe car shoppers who are interested in buying a new car may want to wait until later in the year until production can get back to normal, the media outlet reports. For individuals who have a lease expiring in the next few months, trying to extend it through the end of the year may be beneficial.

Taking over the end of someone else's lease is also an option individuals may want to consider. This is called a bridge-the-gap lease and does not typically require a down payment.

"Taking over an eight-month lease with low monthly payments would allow a person to delay their car shopping until the beginning of 2012, when inventories are expected back at normal levels," Sergio Stiberman, the founder and CEO of LeaseTrader.com, told Forbes.

The prices of used cars are also at record highs, making them a less than desirable alternative, according to the media outlet.

Fewer incentives being offered

With demand high and inventory low, dealers may not feel the need to offer as many discounts as they did in years past. The average true cost of incentives was $2,118 in April, which is a $250 reduction from March and a 19.6 percent decrease from a year ago, Edmunds.com reports. It's also the lowest spending by dealers in six years.

"This is the clearest indication yet that automakers are gearing up for inventory shortages," said Jessica Caldwell, director of industry analysis for Edmunds.com. "Demand for new cars has been growing as the economic recovery has strengthened, but now the industry may experience a hiccup if consumers decide to wait for the next deal to come around, which may not be until the autumn."

However, some shoppers will still be able to find deals when looking at vehicles. Some car dealerships will offer cash rebates to military personnel, college students and recent graduates, according to Forbes. Shoppers who have another vehicle to trade in may also receive extra discounts since used car demand is so high.

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