New Car

New Car

Bradley J. Hill

XECO 212

New Car

The 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 it's 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