Demand is High for New VW Beetle
Posted May 4, 1998
RALEIGH — Supply and demand are the two great forces of economics and the law of supply and demand is simple. When demand is high and supply is short, prices go up. A prime example of that is the current rage for the 1998 Volkswagen Beetle.
Lynnette Byington is what car salesman might call an easy sell.
The first place she came looking for her version of the dream car isn't even a VW dealer.
Leith Buick Sales Manager Don Sigmon says they bought some of the new-again Beetles to attract attention.
"These particular cars here basically were bought by us at an open market sale," said Sigmon. "However, we do sell them as a used vehicle with anywhere from 50 to 400 miles on the cars. We have them here just an an attraction to get folks in, to look at the vehicle as a marketing tool."
Sticker prices on new bugs average around $17,000 and buyers often must wait months for delivery. But the used vehicles are ready to go, for a couple thousand more than brand new ones.
The costs could go even higher now that recent crash test results rank Beetles as among the safest small cars on the road. Byington says that was a selling point for her.
"Oh I heard it did great on the crash test," says Byington. "That's one of the best there is. So that's what I'm, it's a small car but that's what you worry about. Accidents and all, I'd feel safer in this."
When supply catches up with demand prices could level out or drop, but for true bug fans it's not an investment in the future, it's an investment in their past.