Whitigir

So the Yen to dollar value has dropped about 4%. Wat does it affect ?

1/ our car value ? As used car resell value ? Trade in value ? They will drop down in price ?

2/ will new 2014 models be cheaper ?

I suddenly feel bad when i purchased my RX at the time where the Yen to Dollar value ratio was still high....shrug

RX330inFL

In short, nothing.

Unless you were planning to convert your personal money for the purchase from yen to dollars you will not see any difference. The prices do not go down just because of a change in the exchange rate. No, prices for the 2013 will more than likely not go down. No, the 2014 will not be cheaper and will probably be more expensive still when comparing same with same. Manufacturers are global entities. Your RX was probably made in Canada with its associated costs, and whose exchange rate is going the other direction, with little to do with what is going on over in Japan. They cannot raise and lower prices based solely on small fluctuations in one exchange rate in a short period of time.

If you go by your reasoning you never would make any car purchase.

kt22cliff

RX330inFL has it about right. Unless you had/have the trunk of that RX filled up with Japanese Yen notes, nothing has changed and nothing will change for you or your RX.

If you thought you would feel "that bad" about Yen dropping, then you should've shorted JPY/USD and you could still short it.

Vladi

If JPY goes up most likely msrp will go up and if JPY goes down for certain nothing will happen and your jacked up msrp will stay jacked up. That's just how inflation works

My0gr81

This. It will be another opportunity to jack up prices when the Yen goes up again from whatever bottom it reaches. We went through the reverse here in Canada, as the CA $ went above parity with US $, prices dropped a little, but as soon as the CA $ started showing some weakness, all prices went up again.

mmarshall

Agreed......I've seen this time and time again. Some people are always continually afraid of something, no matter how real or imagined, and, for them, it's almost never the right time to buy a new car. Currency-exchange isn't right, Factory-incentives not high enough, Dealershps screw people too much, Old car doesn't have enough miles on it, I can't bear to part with it, The economy/recession isn't right, What if I get a Lemon?, What will the neighbors think?, What will my boss think? I've got this other expense, or that other expense, Will it be a waste of money?.......the can't-buy excuse list is endless.

Now, I'm not saying that there aren't legitimate reasons, economic or otherwise, for postponing a new-vehicle purchase....indeed, in some cases, there are, especially with high unemployment and a lack of job-security. But I've seen a lot of people running around in old, worn-out junk when they could clearly afford to replace it, and just won't get off their tails or take any time in their lives to go car-shopping.

scgt652

Lexus fans in the US should be thrilled about the declining yen. It means Lexus can now price their Japan-built cars more aggressively. Other Japanese brands are already taking advantage of the lower yen. For instance, the Infiniti Q50 will be $900 less than the outgoing G37.

Dolphin

These Global companies have measures in place to protect them against changes in currency... I read that most large makers have financial hedges of all the currencies that effect their sales...of course, futures aren't forever, so most makers are protected a year out against unfavorable fluctuations in currencies. As mentioned previously, what matters most is where the car is built, not where the corp. hdqtrs is located.
This can effect lower volume makers, who manufacture all cars in one location in the world, and then experience unfavorable changes in currencies in some of their distribution markets. Then, you will see huge price increases in due time, assuming the currency exchange does not return.

Interesting Infinity post.... which is case-in-point of what I mentioned... It is possible the Japanese manufactured Lexus will also see a slight decrease, but this assumes, Lexus did not invest into hedges which can offset any potential price reductions, but on the flips side, it also protects against less favorable currency exchanges.

Sulu

Although it is all relative, the fact is NOT that the value of the Japanese Yen or Canadian Dollar is dropping, but that the value of the American Dollar is (finally) rising. With the US$ rising in value again, it seems that, in comparison, the Yen and the Cdn$ are falling in value.

With the rise in the US$, you will likely not see an immediate effect on prices of imported cars (other than, perhaps, a less than expected rise during the next annual price increase). If -- and this is a big IF -- the US$ value continues to be high (and the Yen's value continues to be low), you may see an effect at the next model change, whether it is a mid-model change facelift or the full-model change; prices may drop, or -- much more likely -- you will see an increase in the features in the new model (for a higher value car).

The reason for this delayed reaction is that for cars currently on the showroom floor, all costs have already been spent -- design, development and engineering costs, monies paid to suppliers, advertising, etc. -- and they have already banked on paying back those costs with a given sales price. The car on the showroom floor was brought there with yesterday's Yen and that cost -- if high because of unfavourable exchange rates -- must be paid back and if the value of the US$ goes up between the now and the next model change (when costs will have to start being paid again), it could just as easily go down in that 3 or 4 year period. If, however, the US$ remains high to the next model change, making the next model "cheaper" to design and produce, then prices may come down.

That is why auto manufacturers from high-cost areas (Europe and Japan) are trying to produce their most popular models here, with locally-sourced supplies: produce and sell in US$, and you worry less about unfavourable exchange rates. That is why Lexus builds its RX (and next RX Hybrid) here in North America and why VW built a plant in Chattanooga to produce the Passat, and why there is talk that Lexus may build the next ES here in North America here also. As the most popular Lexus models, the ES and RX are the most sensitive to unfavourable exchange rates.

LexFather

$900 drop is normal and it comes with fake leather standard. The car was built with them expecting the yen at the 80-85 level, not the 95-100 level it is at now.

Future products could be cheaper or companies might just profit more. They have learned to compete at the yen at the 80 level.