Buying a New Car

A new 2016 Nissan Versa starts at $11,990 (Nissanusa.com), while a similar American equivalent, the Chevrolet Sonic costs $14,345 (Chevrolet.com). Many consumers cannot afford an expensive car, Japanese cars however are less costly compared to many other competitors, especially American cars, making them more affordable. American car enthusiasts may say that American cars cost more because “they have more power”. Although this may be true, not everyone needs the extra power, many want to keep the cost down and just get from home to work, not everyone wants to go fast or go off-roading. Japanese cars keep costs low for some consumers that may not be able to afford an American

The lease versus buy decision is usually tough for many managers since these two options are profitable for the company and bear advantages. Understanding the impact of the decision to buy or lease a vehicle is quite tough for the managers. However, by applying economic reasoning which takes into consideration the qualitative and quantitative influences of each of the alternatives, it is possible to make the decision making process much easier. Leasing provides the advantage of paying only the depreciation costs for the vehicle in addition to taxes and other fees while purchase requires the buyer to pay the full value of the vehicle in addition to taxes and other fees. The typical values for purchase finance repayments and lease monthly payments show that lessees pay much less than the purchasers. The economic analysis presented shows that the lease is a more advantageous option than the purchase option when taken for a longer period of time as a result of having a shorter breakeven point for the company or organization.

Getting a car is an intricate process as there are so many factors to consider. Factors that can be daunting if proper research of the vehicle are not done. Everyone wants to make the most of what they pay for and wants to make sure that his or her car is of the best quality. There are a quite few makes of cars available with quality guaranteed but two of the major would be the American and Japanese made cars. Both are excellent car builders and provide good fuel efficiency vehicles that are cost efficient. However, there are some facts and details that can influence buyers to choose one make over the other, this includes: performance, reliability, and resale value.

This is because giving up gasoline altogether is much harder. Public transportation or Hybrid vehicles can be substitutes for vehicles powered by gasoline, but it would take time for people to make this transition as majority of vehicle owners are dependent on gasoline. Therefore, an increase in the price of gas would not greatly decrease purchase.

Review various concepts in Chapter 11 (Consumer Decision Making) and see which of the methods, procedures, and decision rules did this consumer apply?

It turns out that the more new cars that are sold, the lower used car prices will go. In 2014, people bought more than 16 million new cars and 38.5 million used cars. Analysts expect even stronger used car sales in 2015 (U.S. News, Jan. 2015). “Supply drives [used car] values,” (Larry Dominique, Jan. 2015). The supply of used cars is growing because most people who buy a new car have an old one to trade in. That trade-in enters the used car market, expanding the supply and lowering prices. Used car prices are, on average, 2 percent lower than they were a year ago. The price of used trucks and SUVs are actually up 1 and 3 percent. If new car sales continue at this pace, prices are expected to decline overall. Demand for used cars tends to go up between Thanksgiving and Christmas, with the tendency of prices to drop in January and another rise in February.

Fuel efficiency in automobiles has become a topic of much discussion in recent years in the United States. This is due largely to the environmental devastation that fuel emissions cause, but it is also sparked by the rising fuel costs. Making cars with high fuel efficiency not only saves consumers money, but also will drastically reduce the pollution that is caused by emissions. Today automakers are putting a tremendous amount of effort into making their cars more fuel efficient, both to meet government regulations and to make their car more appealing to the consumer.

For the past 24 years of my life I have been an employee of a company called Chrysler Financial which operated as the captive financial arm for an automobile manufacturing company known as Chrysler Group LLC (Chrysler Motors) until April of 2009. Chrysler Motors is one of the big three American automobile companies that manufactures several types of vehicles which are sold not only in the United States but also worldwide. The brands of vehicles Chrysler Motors manufactures are as follows: Chrysler, Dodge, Jeep and the recently added fourth brand for their truck line named the Ram. Aside from manufacturing vehicles, MOPAR, which is short for Motors and Parts, is the automobile parts,

When the automakers purchase capital goods to produce more automobiles, their demand for workers will decrease since capital goods can substitute autoworkers. Correspondingly, the labor demand curve will shift to the left. In terms of wage level, as the demand falls, it will decrease as well.

Similarly government regulations in the United States and Europe are tightening up, consequently requiring cars to be cleaner and more fuel efficient. As a result, the collaboration with BMW is paramount to getting the most fuel efficient vehicles to the market in a timely manner so that GM can harvest a substantial profit. (3) In addition General Motors is working on the next generation of fuel efficient and gasoline free vehicles to help reduce the impact of the vehicle on the environment, while preserving personal mobility, which further indicates its commitment to innovation. (6)

You wake up one day and your children are now teenagers. Instead of toys, they now want you to buy cars for them.

The last several years were also tumultuous for the U.S. auto industry. After dominating the market for decades, American automakers had grown complacent about product development. At the same time, rising gas prices and uncertainty about the economy caused consumer preferences to shift from SUVs to more fuel efficient vehicles. Foreign competitors entered the U.S. market offering more reliable, higher quality and more fuel efficient vehicles at a lower price and began to steal market share away from American automakers. In order to remain competitive, U.S. automakers need to focus on increasing production efficiencies and developing innovative product offerings. Firm Analysis

Some financial decisions that people face are buying a house, buying or renting a car. Some of the trade-offs of buying or renting a car is if you buy a car you spend more money at first and you have to only worry about spending gas money and insurance. If you rent a car then you have to pay money every month on time or you lose the only vehicle of transportation you have.

Buying a car is a high-involvement purchase as you can be faced was a large selection of choices. When figuring out which car to buy, consumers consult the advice of family and friends. However, according to a vehicle customer survey from Maritz Research, the most important information that is also the most influential in the buying decision tends to come from an individual that has a lot of knowledge on the product, such as a cars salesperson at the dealership. Considering the complex nature of this decision, reference groups play a large role. A reference group is ‘an actual or imaginary individual or group conceived of having significant relevance upon an individual or group’s aspirations

As income of people is rises and once the economy gets stable, the demand for automobiles will also increase.