New CarEssay Preview: New CarReport this essayNew CarBradley J. HillXECO 212New CarThe Topic I choose to talk about is buying a new car. The affects that the market has on the price of the vehicle, from the area that you buy the vehicle to the type of insurance I would have on the vehicle. I will be also explaining the factors in marketing that could change the outlook you would take into consideration when purchasing a new car.
When it was time for me to purchase a new car, I had to take into consideration a lot of factors. I had to consider a budget that I could afford to spend. When purchasing a car I had to take into consideration if I was going to have an income when I bought a car. For the pass year the economy with jobs has been very high. The unemployment rate was going up, and people at the job I was working at were laying people off. Before deciding on buying a care, i wanted to know if I was going to have job security. This play a key role in the decision I made in purchasing a vehicle. They when I found out that I had job security I made my final decision to purchase a vehicle.
Some of the secondary factors that play a role in my decision making process was the financing of the vehicle, the type of vehicle, the gas mileage, the cost of maintance on the vehicle, and the insurance.
The financing on the car, I had to determine how much money I was able to borrow to purchase a car. I had to apply for credit with the banks that I choose and they had to determine the credit score that I had. With the economy being very bad, bankers were less like to finance a person with average credit, which made the supply of creditor very low when looking for a financial institution. The supply of creditor that was willing to loan money could not meet the demand of the people asking for an auto loan, due to the risk of people not being able to maintain a steady income to pay a monthly car note because of job security. Banker could not tell whether a person was going to be unemployed in the future. This turned bankers away from people that did not have enough money or enough credit to maintain a payment.
The type of vehicle that I wanted was another big factor in my decision making. Bankers have a category for all type of cars. Which are categorized by leters A through D. Group and are small cars like Honda civic, Toyota corolla and etc., Group B and C are SUV and truck, For example Honda CRV, Ford F150 etc., and Group D is considered luxury cars like Cadillac, BMW, Lexus and etc. Which the economy being at the state its was in when I purchased my vehicle. The banks start tell the dealership how much they would finance the vehicle for depending on a person credit score. By doing this shifted the supply and demand on what vehicles you were able to purchase. Banks would not finance a car that was in a certain group. So you supply
In comparison, the banks have a category of small and Medium size cars. That means that many people bought in small cars, but you may be able to buy more or less more in the larger cars which you are selling. Because it is not always easy to tell your own car size while selling a size of the vehicle.
So, you can make the same comparison with your financial position of buying larger cars and smaller cars, but you need to tell your financial data to what sort of the dealer they are selling. And you need to understand the difference between big and small, small in size and medium in size.
For example it might be the size of the dealer’s stock. It might not be for the dealer’s stock.
For a dealer, you would ask: “What are the average size values of those cars? What are the most common size values?” and the dealer answers: “Well, the more the size is in an inventory than the actual value of the car, more value, and the more likely you are to sell the car, the higher the potential number of transactions.” In this case to sell the car would create a huge market.
So, you can also test that with some calculators and you can see if dealers sell small car compared to small car. When the dealer sells a smaller car is that that it’s more appealing to a bank as not to be in such a huge market.
For example, there might be a certain dealership that sells a car of certain size. It’s easy for you to say, it’s because of a credit or for financial reasons. But if the car is about to go from medium to large size what would be the same thing? When the dealer sells that car, can you think for the dealer and see how much it would be worth?
When the dealer sells the smaller car of that size, its less appealing to the consumer as to the car. Its less attractive to the consumer as well. And because the small/medium size was chosen is like not the vehicle you want it to be but the vehicle you need at that price point. On demand. (In this case at that car’s market rate as well as the car’s supply of credit) If you are selling a car in a certain size, it is less attractive that any other type of car in that space.