Friday, November 12, 2010

Cars Come and Cars Go

  According to an article on the Reueters website, car sales are expected to be at all time low this year and perhaps for the next year or two following. Now what can be the reason for this? Obviously many would agree that this was a cause of a poor economy we are currently enduring. But some critics however, are blaming it on the internet. Who would have thought? I agree in this modern era gadgets have facilitated everyday activities such as shopping, communicating, and participating in virtual networks. In regards to shopping for an automobile, consumers rather than go in person to see the car for themselves they can browse online. Features include everything from interior views, exterior views, to price estimators. With such information at your finger tips, why would you care to take time away from your busy schedule to go to the dealership? Although this can affect the salesmen, who earn commission from the cars they sell and have better chances of persuading you to purchase a car as you begin to "window shop". The internet appears to have its pros and cons. The pros of the internet is the marketing efforts each company can project to consumers. Appealing deals and offers will help their sales and allure a larger market. The current state of our economy appears to be the biggest factor in sales decline, not simply the adverse effects of the internet. If sales is the determining factor in the survival of many of these car industries they should look into better financing options for those who wish to purchase a new vehicle but find the prices a bit high. This is the reason why gadgets are so much more appealing, from a price perspective the total sum one must spend in the long run seems more for a car than an ipod for instance. Customers realize there are more than just the cost of the car that they must spend money on. They must pay insurance, monthly payments, and car maintenance. These costs are greater if you think about it.

Overall, cars are a necessity to many and as technology continues to improve who knows how this will impact the necessities we have all became accustomed to.

2 comments:

  1. I agree that customers are realizing more and more how expensive a car is beyond the initial purchase. Gas, maintenance, and insurance take a big chunk out of people's pockets. I would like to see in the future more public transportation that is fast and efficient and runs on little or no oil. I think that's more likely to happen in major cities but who knows.

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  2. I agree with a lot of what you have said.in order for auto companies to appeal to the "technology generation" they have to make their cars more appealing to that market group. Teens and young adults dp not have the purchasing power as they did a few decades ago and with so much of the financing options for owning a car out of the reach of the average teen, there will definitely be a slump in sales.

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