Purchase of New Car Essay

727 WordsDec 4, 20123 Pages
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 then they could rely on riding a bike but that is very rarely the case. Another substitute for purchasing a new car would be to try and car pool with co-workers. If all else fails though instead of purchasing a brand new car then a used one could be purchased instead, depending on the payments, charges, and terms of the contract. Just as there are substitutes for the

More about Purchase of New Car Essay

Open Document