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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.

First Ford Mustang prototype shots caught by legendary spy shooter Jim Dunne

You know how people refer to someone as having "been around the block" to mean they're very experienced? Well, when it comes to automotive spy photography, Jim Dunne actually laid down the concrete slabs of the block's sidewalk. The unforgettable Dunne more or less invented the car spy game - a fact he cemented by writing book called Car Spy - and has been delivering spy shots and reporting on the industry for some 45 years now. (He also once employed this writer as his impromptu personal chauffer on a Volkswagen trip in Germany, while he slept, but that's a story for a different time.)
In any event, Dunne must be on a mission to prove that "elder statesman" doesn't also mean "washed up" as it is his shots of the upcoming new 2014 Ford Mustang that we've been handed by our friends at KGP Photography.
Mr. Dunne has likely spent the last few years obtaining powerful telescopic lenses, as the Ford in question has clearly been photographed from some distance. Nevertheless, what you see here is visual evidence that the sixth-generation Mustang has moved beyond the mule stage, and is now testing in proper prototype form. Sources indicate that there are production-spec body panels under that baggy canvass dress; but the slightly less bulky silhouette of the new car can be just made out. While the car's bumpers have been removed to obfuscate things, we can tell by way of the camo's apertures that the car's taillights have moved upwards and towards the lip of the tail. A fender vent appears to be visible, too, just behind the front wheel.

Ford dealer loses Super Bowl bet, pays $300K to lucky customers [w/video]

A Missouri Ford dealership's Super Bowl weekend sale cost it big when the improbable happened. Hutcheson Ford ran a promotion from January 29 to February 1, called the Super Weekend Sale. The gist was, if any customer purchased a vehicle between those dates and either the opening or second-half kickoff of the big game was returned for a touchdown, the dealership would refund the purchase price.
In the dealership's defense, it seemed like a safe bet. According to the mathematicians, there was just a 2.5-percent chance of either half opening with a touchdown return. But that didn't stop Seattle's Percy Harvin from doing his part to ruin Denver's evening, returning the second-half kick for an 87-yard touchdown run. Twelve Hutcheson customers were eligible for refunds thanks to the return, with prices ranging from $10,000 to $55,000, according to Automotive News. The total amount shelled out by the dealership? $300,000.
"At least we're not like that furniture guy that lost $7 million," dealership marketing manager Kathleen Frazier told AN. We think it was a big success." The dealership did take out insurance to cover its losses, meaning the $300K won't come entirely from its pockets.