Purchasing Interest Rates

Ford’s F-Series experienced a 46% drop in sales for 2006 compared to 2007, making a once most wanted truck in the United States almost abandoned by the consumers. The second and the current recession that began in 2007 brought a new wave of impact on the auto industry. At the time banks were more flexible with approving loans and the interest rates were low which attracted a lot of consumers into the housing market. Since many of them were not able to afford it, eventually they turned to foreclosure leaving them with debt and no credit worthiness; thus, banks started raising the interest rates on auto loans. But foreign competition, higher oil prices, and higher interest rates were not enough to destabilize the auto industry on such a scale; it was the recession that shocked it the most.

However, it seems that some car companies have gained advantage of the current economic situation. Present market conditions are beneficial for companies that offer lightweight cars with small, fuel-efficient engines such as Smart, which has more than doubled its sales with a rise of 105% in 2008 compared to last year’s (Pollard 2008). Aston Martin on the other hand has suffered a 26% fall in its sales, year-to year figures dropping from a total of 1978 sales up until last year’s November to 1479 units up until the same month this year (Moody 2008 p. 44). As gloomy as the situation might seems for Aston Martin it is the same for their direct competitor Bentley, which is experiencing the same decline in sales. The UK Car market is in its worst condition since 1966 (Pollard 2008). The existing situation presents an unprecedented slowdown compared to the major rise of car sales in the past several years. The credit crunch has effectively crippled the entire European car market excluding only a few countries. “Warwickshire car maker Aston Martin is suffering from the economic downturn but is hoping to offset weakness in the UK and United States with bigger sales in emerging markets – with the Middle East a key target.” (Bowker 2008, para.1). The stagnation that has seized Europe presently regarding

The best truck financing eventually means that you have to pay low interest rates and low monthly payments. Trucking businesses that do not ensure that they obtain the best deal on their loans could face difficulties in generating profits if the majority of their revenue has to spent on loan repayment. The optimum way to avoid this phenomenon is to develop a concrete plan before availing truck financing.

“Pricey,” in this instance relates not only to the monetary cost of a car, but the environmental cost as well. On average in 2014, a used car costed approximately $16,800 (USA Today). And said used vehicle would have emissions of around 4.7 metric tons per year in carbon dioxide emissions (Environmental Protection Agency). That is a lot of CO2! And according to EPA emission reports, “In addition to carbon dioxide, automobiles produce methane and nitrous oxide from the tailpipe and hydrofluorocarbon emissions from leaking air conditioners,”(Environmental Protection Agency). Overall, when it comes to owning your own vehicle, there is a larger cost than the down payment; the environmental cost. Every aspect of owning a car produces harmful emissions; the manufacturing of the car parts in factories which releases carbon dioxide into the air, the transportation of foreign made vehicles to the United States, a process that also releases emissions, and the driving of the cars by American

In car sales I have to look at 3 components the producer price index and gas and fuel prices. Looking at auto sales is a good way to look at demand for automobiles. The higher the consumer demands the more or less should be produced. Fuel prices as well as oil have a dramatic impact on auto sales, if prices are up the less likely the consumer will opt for a large vehicle.When buying a vehicle is good to look at buying a “CPI (Consumer price index) measures the average change over time in the selling prices received by domestic producers for the output” (Bureau of Labor Statistics 2015) Another thing to analyze are interest rates as they are important to our economy. Interest rates lead to more businesses borrowing money; if interest rates are low that means consumer will buy the product.” Interest rates are charged by the country’s central or federal bank loans and advances to control money supply in the economy in the banking sector which is typically done in a quarter bases to control inflation and stabilizes the country’s exchange rate”. ( Kirch,Vick 2006). Interest rates and unemployment rates usually go hand in hand in the auto industry it seems. When the auto industry is going steady and heading towards a peak performance, unemployment is low and interest rates are a little higher due to supply and demand. During recession in the automobile industry

You spent days, perhaps weeks performing research on buying a new car. You carried out due diligence to learn everything you could about a particular model, including arranging test drives, obtaining quotes from multiple dealers and perhaps securing financing on your own. Thousands of dollars in savings mean you got a great deal on a new car.

Shopping for the car is something everyone must learn because there are many factors that must be considered because beside purchasing a house purchasing a car is the second biggest purchase must people make and the purchase of the wrong car can affect you in so many ways.

- Social factors: many people are jobless and reduce their spends or change the demand of vehicle. The gap between the rich and the poor is bigger and bigger in the world. Owning and driving a car shows the owner’s wealth and social status. Moreover, more people like environmental friendly vehicle.

Firstly, the price of related goods such as rental cars and carpool programs has led to people not needing to own a car of their own because these services are cheaper than buy a car. Another determinant is income. For example, due to the economic crisis people such as Mr. Felice decided to save his money and be prepared for the worse than spend in on an Audi TT that he has been saving to buy. People like Mr. Felice are not feeling secure about their financial stabilities therefore is being more cautious with whether he should be spending his money on something that is either a need or want. The last determinant of demand is number of buyers because due to the other substitute goods and instability of income the numbers of buyers are decreasing. If people aren't buying cars then the revenue of these car making companies will decrease as well because they are not having any money come in. The number of buyers is also decreasing due to the change of driving-age population in Europe. Compared to the United State, Europe's population is aging which leads to people not wanting to buy are car. An aging population leads to a decrease in car sales because people who are 50 year old or older will not be recommended or be allowed to drive themselves.

Despite the increase in gasoline prices, most people still want to own a vehicle. Cars are expensive items, and consumers have several choices. New cars have several perks, but used cars also have several advantages. You do not have to buy an expensive new car. You can find a reliable used car at our dealership. We have a large selection of quality used vehicles, and we are always adding used cars to our inventory. You might find several used vehicles that are suitable for your lifestyle.

The decision to buy a car is, very often, prodded by the promise of easy financing that car dealers advertise. "Do not compromise, you can now own a Toyota Corolla for as little as Rs 10,000/ month" says an advertisement, egging on all with monthly spare money of Rs 10,000 to own the dream

The ultimate dilemma during car shopping: “should I buy a new car or a used car?” There are endless variables when considering either option, however I am going to restrict this analysis to two factors: the value and finance of new cars. I will conclude with an informed decision regarding the decision whether to buy new over used, based on the data.

Macroeconomics focuses on the national economy by providing a basic knowledge of how things work in the business world.

Initially when referring to the macroeconomy we focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation. As a result of economist John Maynard Keynes work in the 1930s, governments are able to control the total amount of demand in the economy /Aggregate Demand (AD =

Macroeconomics concentrates on the issues that affect the economy in its entirety. It particularly focuses on economic factors such as inflation, unemployment and economic growth. Macroeconomics examines the elements that influence the behaviour of national and international economies, taking into account the total amount of goods and services produced by all businesses and the government.