...The Purchase of a New Car In purchasing a new car there are going to be plenty of factors that could possibly cause change in supply and demand. When national income falls, the demand for automobiles falls. When it is rising, so is the demand for autos. When the price of fuel rises, the demand for automobiles also falls a bit. In addition, factors such as the price of another automobile will shift the demand for a car, improvements in technology will increase the supply of automobiles, increase in the price of tires, steel, rubber, engines or any other component of the car will cause a decrease in demand for automobiles. There are many different things that can affect the supply and demand for cars. When the price of gas gets to be a certain level consumers will find substitutes for driving or for using their vehicles. With the price of gas approaching $4 a gallon, more commuters are abandoning their cars and taking the train or bus instead. Some of them will opt to take motorcycle only because there is less gas that is going to be used, but they still have to purchase some fuel. Mass transit systems around the country such as Marta, are seeing standing-room-only crowds on bus lines where seats were once easy to come by. Parking lots at many bus and light rail stations are suddenly overflowing, with commuters in some towns risking a ticket or tow by parking on nearby grassy areas and in vacant lots. If the commuter lived close enough to their place of work...
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...leader in the used car industry. However complications have emerged as a result of duplicators attempting to copy their “no hassle offers” in the highly competitive used car market. Therefore, CarMax’s primary concern is staying ahead of the competition and eliminating threats from potential future disruptions from competitors. Therefore the key question we will try to answer in this analysis of the CarMax case is, can CarMax continue to grow successfully given the threat of new competitors entering the market? After thorough analysis of the situation, our team has come up with a series of recommendations that will allow CarMax to remain competitive in the market in the midst of growing threats form new competitors. First CarMax should expand the Parts and Service Department by offering attractive bundles to customers when purchasing cars such as service a service add on. This will CarMax gain additional market share by allowing them to become a one stop shop for car issues, incentivizing repeat customers and increasing the lifetime value of each customer. In addition, CarMax can build a mobile application that allows customers to make purchases. This move will help CarMax reach a wider audience, enhance customer experiences, and avoid having to incur additional costs associated with hiring and training new salespersons. Issue Analysis The industry is subject to economic conditions. Consumers do not make big purchasing decisions, such as buying a car, if the economy...
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...Abstract You are interested in buying a new car and Bob lets you borrow one of the new cars on his lot for a week to test drive. You decide you like the car and when you visit Bob to drop off the car, he hands you the following document and a pen May 1, 201x I promise to pay to the order of Bob's Auto Emporium $20,000 (Twenty thousand dollars) with interest at the rate of 7% per annum. What type of instrument is this? Does this instrument meet the requirements for negotiability under the UCC? INDIVIDUAL WORK The above example is a partial Promissory Note. The reason that it is a partial promissory note is because the document is missing key values to become a full legal document. The above example does not state all the requirements that need to be meant as the payments are being made. It also does not have the time frame for which the payments are to be received and the time frame to pay the balance in full. The example does not meet the requirements of the UCC due to it does not list what will happen if the payments are not made. The documents also does not state how the payments are to be made and how the payments will be broken down with the interest that is going to be paid for the purchase. The document also does not have the full date that the documents was created. The document would also need to be signed by the owner of the car company which will state that he agrees with the term of the promissory note. The way that the document is worded there is no...
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...Threats > Singapore has a excellent transport system, which is a much more cheaper service with the recent reduction of bus and train fares. > The off peak car scheme gives Singaporeans more ability to own a car. > There are low taxi fares in Singapore > The private car rental scheme allows car owners to rent out their vehicles. > Singapore is only a small country making it much more efficient to use public transport rather than renting a car to only use for short journeys. >Petrol prices rise’s Opportunities >Owning a car in Singapore requires high maintenance costs, Certificate Of Entitlement, cars also rapidly depreciate. > climate change and the impact to the environment cars have, provides a chance to introduce more eco-friendly cars ,with technology evolving and there being a larger and superior range of eco-friendly cars Weaknesses > There are high maintenance cost for the cars and they are required to purchase new cars regularly. > The price to hire a car is much greater than public transport. > There are many other Car Rental service’s who provide the same services that Avis does. > Competitor Comfort Delgro has a larger fleet of cars, with over 1,400. Strengths >Has a strong brand identity that is known throughout the world. >Avis is said to have strong performance in pricing...
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...management role and not to be involved in the day-to-day operations of the dealership. The profits of the dealership were fundamentally important to Rusty’s future lifestyle. As the founding owner of the dealership in 1968, he had seen the dealership grow to the current sales level of approximately 600 new cars and 600 used cars annually. His service facility has also expanded to 18 service bays. In Rusty’s opinion his long standing policy of emphasizing new car sales as the principle business of the dealership had lead to the growth. He also attributed this to developing the customers and playing close attention to the customer’s needs. Most customers both new and used had returned to the dealership several times to make additional purchases. The latest income statement is shown in the exhibit along with an analysis of the service department expenses. To accomplish semi-retirement Rusty needed to make organizational changes. Talking with his daughter, a recent Laurier MBA graduate, he felt that the profit centre approach would best fit his requirements. Thus the dealership was divided into three profit centres. The new cars sales department was to be run by Sue Me, the used car sales department by Le Mon and the service department by Otto Baun. All of these people had been key players at the dealership for the past ten years. Each manager was told to run their department as if it was an independent business. Under the profit centre approach each manager would receive their...
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...for used car versus new cars. The supply and demand for used car continue to increase. We see a trend from 1995 to 1999 and again from 2009-2010 (2011 not release yet) for used car sales increased. Increase in demand due to high gas prices and the short supply of Japanese small new cars. We find a significant demand response, as nearly half of the decline in sales of U.S. manufacturers from 2002-2010 was due to the increase in gasoline prices. On the other hand, a gasoline tax increase would have a modest effect on average fuel efficiency. The effect of prices of used cars on the demand for new cars are mixed, customers are looking for more efficient cars, and less payments. The recession in the United States is driving more costumers to buy used cars since they are more affordable; also the earthquake in Japan created a short supply for small cars in the market, bringing more opportunity for the used car to be in demand. One thing to keep in mind because of the demand for small cars and compact cars is rising, the dealerships are selling used cars for more than their actual MSRP, and the customers are buying them, therefore moving the economy in the right direction. We the used car prices increasing and Japan being able to continue manufacturing small and compact cars, customers are beginning to lining more and more for new cars. We the high prices of gasoline, the used car mind set is changing creating a demand for more small, compact and gas efficient cars.. More fuel...
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...En: Macro | * The effect of 2008 recession has impacted the company. * A new car for the new driver is the socio-cultural factor targeted. | * Focuses on environmentally friendly cars. * Technological innovations have given Toyota competitive advantage. | Management Structure | * Reduced layers of management as a part of restructuring. * Leaner and less costly management. | * No separation of oversight and execution. * The board retains responsibility for execution. | Operational & Financial Issues | * Even though Ford had applied for government loans it opted not to seek government loans. * It is now having a positive net profit. | * Toyota has superior supply chain management with JIT in place. * Toyota is not making a positive profit. | Analysis of Strategic Intent | * Ford wants to be profitable by 2011. * It wants electrification of its cars. | * Achieving a larger global market share. * Serving the nation of Japan. | External Challenges: | * Widening political environment in the US * Sluggish economic recovery in the US. | * Aging global population, not interested in new car models. * Weakening power of the Yen. | Current Manufacturing | * Lean and lower cost after workforce reduction. * Focused on electrification of cars. | * Advantage from JIT and supply chain management. * Modular design of cars makes manufacturing flexible. | Facilities & Distribution System | | ...
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...States. In this brief, we will look at the risk/reward of each strategy, how to use the existing Aero brand and following in the United States, and my overall recommendation. If it is decided to go-it-alone, Aero Motors will effectively be starting from scratch. Although extremely popular in the European and Asian markets, Aero is not a well-known entity in the U.S. Not only will we be tapping into a new market, but it is a new product line. Advertising and promotion will be vital, as will the necessary market research initially. A support service to service the cars in North America will have to be established, along with proper distribution channels. This will not be cheap. A large investment will have to take place, and it will also take time to implement a competitive marketing strategy to reach our intended audience. Since we only have a limited window (2 years) to maximize our current technology advantage over our competitors this makes it a risky proposition. Going-it-alone will give Aero Motors full control over all aspects of introducing the new cars from start to finish. We can decide what markets to enter, and have creative control over our advertising campaign. We get to keep our current technology advantage amongst ourselves. Upfront costs and investments will be costly for the first couple years, but Aero Motors will reap all the long-term benefits. Establishing a strong brand is our primary objective, and partnering with a U.S. based company will...
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...engaged in the business of car rentals and also various other rentals and used auto business. The industry has been growing at a healthy rate and when we see the US car rental industry we will see that the revenues has grown from $20.08 in 2012 to around $40 billion in 2014.The United States represent have of the total revenues in this industry with Europe leading for the second position. The company Enterprise have expanded their leasing business to the buying of the new cars and using them along with the selling them to the public as used cars. They entered the daily rental business and also the truck rental businesses. Overall they have several business units which can be differentiated with the mode of doing business. They are the off-Airport market which deals with the travelers and the holiday packages. The On-Airport market deals with the business travelers through exclusive ordering facilities and express check out. The After-market deals with the selling of the used cars which they have bought from the manufacturer. This has reduced the cost of reverser logistics. The country in question for market entry will be HongKong.HongKong have been growing as the major business hubs of the world with the technology and computer software industries (Carroll & Grimes, 1995). The car rental industry is in the nascent stage with some of the companies starting operations. The auto industry is highly developed which will help Enterprise to buy the cars and then resale them. The...
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...Product Purchases and the Economy ECO/372 October 12, 2015 Product Purchases and the Economy A new car purchase is one that takes a large amount of consideration and budgeting. The most important economic indicators to consider when investing in an automobile purchase are unemployment rates and interest rates. These indicators will assist a person when deciding whether to purchase new or used. Is the right time now or later to purchase a truck? Economic Indicators The automotive sector is a cyclical business. Since it is a cyclical business, changes in the revenues and earnings of automotive companies are more likely due to the state of the economy and the strength of the consumer. Sales in the automotive sector are higher when economic activity is strong and people feel confident about their future economic prospects. In this environment, more people are likely to make an automobile purchase. Clearly, unemployment is a major factor in this environment. People do not feel optimistic about a major purchase when they are unemployed. People without jobs are less likely to have the means to afford a car. Someone with a job is not likely to make a major purchase if he is worried about losing his job. In 2009, the unemployment rate was between 8% and 10%, and auto sales were 9 million on an annualized basis. In March 2015, the unemployment rate was 5.5% and auto sales were 16 million. Interest rates affect the financing costs of purchasing...
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...Leasing vs. Buying a Vehicle The great debate to lease or buy a car? Which one of the two options is the smarter or he better choice? The answer to this question is both and neither are the best options. Confusing one may think so, however, the best way to get to the answer is to ask yourself what is important to you. Every person is different with different values and priorities that determine for them whether leasing or buying is the answer. There are people who desire to drive a new vehicle every few years with little or no maintenance costs. Some people have a strong desire to own the vehicle, as opposed to lower upfront costs with no ownership. One of the two of the biggest temptations for many people to lease verses buying are that the monthly costs to lease are cheaper than the monthly payments to buy a car. The other is that they are able to have a new car every 2-3 years, as opposed to the people who purchase. People who purchase generally hold on to the car for an additional 2 years after the last car payment. Let’s review the pros and cons of leasing. The advantages of leasing are it offers lower monthly payment and the ability to drive a new car with all the new bells and whistles every 2-3 years (ehow). There is a tax benefit of paying lower taxes since the individual is paying the taxes on the monthly payments verses the full value of the car. From the two examples so far it appears that leasing is a great situation, and everyone should lease; once...
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...influence the buying behavior could increase the sales volume. The consumer behavior is an important factor to indicate the decision making process in buying a car. The buying behavior would influenced by the marketers. The job of the marketers is to “think what customer want” and to guide the company into developing offers, which are meaningful and attractive to target customers and creating solutions that deliver satisfaction to the customers, make profits to customer and benefits to the stakeholders. 2.0 Consumer purchases decision process In the role of consumer, they constantly face choices like how much to spend, what product to acquire, and where to purchase the product. Marketer need to understanding of how these decisions are in order to develop appropriate marketing strategies. The consumer buying decision process comprises five stages: problem recognition, information search/ search for alternatives, evaluation of alternatives, purchase decision, and post-purchase evaluation. The buying decision process is influenced by psychological factors, situational factors, and also social factors. This consumer buying decision process mentions about whether to purchases, what to purchases, when to purchase, from whom to purchase, and how to pay for it. For example, a consumer names Ali decided whether to buy a car, what model to buy, when to buy, from whom to buy, which dealer, and how to pay for it. In the life reality,...
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...I have, in the past, found it necessary to purchase a car, and have purchased several over the years. My first car was an old Dodge Charger that I paid $300 for in 1989. It got me from A to B and back again, and that was all that mattered. As I grew older and became more financially stable I purchased my first new car, a Hyundai Elantra. It was brand new, with all the bells and whistles, and I still drive it today (it is covered in duct tape- eleven years later). I drive it because it still works and I am less a car payment. Whether a car is new, or used most people require a vehicle to get through their everyday tasks. Cars are a necessity in most areas of this county and around the world, making the car industry a global economic force. Possible causes for change in supply and demand for cars: Product recalls – several years ago the Toyota Company had major recalls of several models that caused major accidents and deaths. The demand for that specific manufacturer decreased and Toyota was forced to rethink how to market its vehicles to regain the trust of its consumers. Price of gas – the price of gasoline fluctuates and has risen over the last few years to all- time highs. The wars being fought in and around oil-rich nations doesn’t help. People will purchase more gas efficient vehicles when gas prices are high. Gas has low price-elasticity because we need it to run our cars, but we can choose different cars to counter act the blow of high gas prices....
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...Choosing a Car Choosing a car to buy is one of many important choices in life. Most people are very picky when it comes to choosing a car. The three important factors when buying a car are the price, appearance, and the name brand. When buying a car, the price of the vehicle is important. If the customer is a wealthy individual, they would purchase a new car. When buying a new car the buyer is able to test drive the vehicle, and if the car and price meets their demand they are ready to buy the vehicle. If a customer is looking for a cheap car, they would purchase the vehicle from a used car lot or a car auction. At a used car lot you are able to test drive the vehicle and see how the brakes and other features work. In contrast, at a car auction the consumer is only allowed to see what the car looks like and listen to how the engine sounds on each vehicle that is being auctioned. Then, when they find the one that will best meet their demands, they will place a bid. Looks mean everything when it comes to choosing a car. When buying a car most people choose their car based on what color it is and the appearance of the car itself. Before picking a color for their vehicle, the customer looks the appearance of the car such as size of the vehicle and the interior of the vehicle. If the customer wants a large vehicle where they can haul heavy objects such as a trailer, they would purchase a heavy duty truck such as a Ford F150. If they are looking for a family vehicle they would...
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...business customers go through? What are the factors affecting their behavior and in what ways the behavior of these two parties differ? Answers to all these questions raised will be examined through several examples to come up with the major differences between the individual consumer buying behavior and the business customer buying behavior. As individual consumers we make countless number of buying decisions throughout our lives. While some of our purchases are made unconsciously or requires low involvement, in some others we go through a long decision process. But in general, the individual consumer behavior is related to internal or external stimuli, shaped by consumer psychology and certain cultural, social or personal factors going through the buying process. The buying process starts with the recognition of a problem and followed by several stages like information search, evaluation of alternatives, purchase decision and postpurchase behavior. Personally, the purchase of my first car was one of the most important purchases of my life up till now....
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