Question
Given relatively sluggish economic growth and the low rates of wage growth, vehicle manufacturers and car dealership salespeople understand the anxiety that car buyers feel
Given relatively sluggish economic growth and the low rates of wage growth, vehicle manufacturers and car dealership salespeople understand the anxiety that car buyers feel when purchasing new cars, especially immediately after the purchase. The buyer's key consideration is value for money and the feeling that they have spent their money wisely even before using the car. The problem is particularly acute as new cars lose 15-35% of their value in depreciation the moment they leave the showroom and up to 50% by the third year. No wonder new car buyers feel vulnerable. There are benefits as well - new cars look better, incorporate the latest features, and have lower maintenance costs. Car dealers work hard to reinforce the purchase decisions made by buyers by sending customers newsletters and offering efficient (or free 3-year warranty) after-sales service to ensure that there are no, or few, maintenance problems. In many cases, new vehicles are sold with free insurance, 0% financing deals, or 'buy now pay later' schemes. All these actions by the manufacturer and/or the dealer are aimed at addressing a specific buyer issue. What buyer concern is being looked after here and how?
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