REPORT WRITING

Report Writing: Car Buying Trend

Report Writing: Car Buying Trend

Introduction

Buying a car is a process that cannot be spontaneous, in order to avoid unpleasant surprises or disappointments in the last minute, it is important to set some rules and stick to it. A buyer should carefully consider the budget, the amount of insurance, car registration, inquire about the cost of a standard review, compare consumption between the different models these are all practical questions, which will allow an individual to organize his/her future purchase.

The four largest major players in the Automobile Wholesaling industry are General Motors (GM), Ford, Toyota and Chrysler. Over the past five years, GM and Chrysler lost a significant amount of market share as both companies underwent major restructuring and rebranding due to the turmoil of the automotive crisis. Smaller, foreign companies such as the Hyundai-Kia Group have taken advantage of the falling concentration within the industry by increasing operations in the United Kingdom (Ralph, 2005, pp. 45-89). Toyota has also increased its share of the market relative to the Big Three automakers in the United Kingdom through its small and hybrid car offerings that consumers have shifted toward as gas prices have increased.

Improvements in upstream and downstream demand factors will facilitate industry growth. These major manufacturers underwent major restructuring in 2009 but reemerged in 2010 with stable balance sheets (Sam, 2001, pp. 123-54). Similarly, other major manufacturers are expected to boost production lines and increase output. As credit standards loosen and interest rates decline, dealerships will be better prepared to entice consumers with financing opportunities that encourage sales (William, 2006, pp. 78-96).

Discussion

Innovation within the industry is focused on existing products and service delivery, not on new markets. For example, the use of the internet has eased distribution channels and made delivery systems more efficient. There are certain factors that should be kept in mind before buying a new car; these factors are discussed in this section below. The entire automotive sector depends heavily on the preferences of the consumer (Sam, 2001, pp. 123-54). As the economy stabilizes after its post-recession recovery period, consumers will improve willingness to purchase a vehicle. This driver is expected to increase slowly during 2012, creating a potential opportunity for the industry (William, 2006, pp. 78-96).

Price of new cars

As motor vehicles become more expensive, consumers will favor relatively cheaper substitutes such as bicycles or public transportation. This driver is expected to increase slowly during 2012 (Ray, 2005, pp. 101-23).

Per capita disposable income

Motor vehicles are costly to buy, so disposable income plays an important role when making the decision to purchase a vehicle. When disposable income rises, demand for new vehicles and more expensive vehicles tends to increase as well. This driver is expected to increase during 2012.

Furthermore, a rise in per capita disposable income over the next five years will foster consumption that consumers delayed during the recession (Ralph, 2005, pp. 45-89). In light of these developments, consumer confidence in the automotive market will ...