Conclusion of Car Research

BLOG POST #6  

RESEARCH

The economic principal I am studying is “because of scarcity people choose, all choices have an opportunity cost”.

In my research of the economic principal I was studying, I used the focus of cars and the different consumer needs when buying a car. In my research I first looked at why people buy certain cars. I learned that it mainly comes down to the location of the consumer and they money that they have available to purchase the car. Because it depends if they need an all wheel drive car or if they are willing to spend extra money to get a luxurious car or a sports car. I continued to research why consumers choose to buy certain car models. According to study by  J.D. Power, a highly trusted automotive guide, found that the top reasons consumers choose between certain models is the reliability and comfort of the cars. I didn't find this to be much of a surprise, because I would argue that most people would prefer a reliable car over one that would cost a lot to maintain. It also makes sense that consumers would rather have a car that is comforting for the daily driving rather than one that is not.

Further on in my research I looked into the appeals of SUVs, cars, trucks and sedans to the consumer. Edmunds, a leading automotive news outlet, stated that it mainly depends on the individual consumers needs. It depends if they are looking for “spirited drives” which would mean they would want a sport car trim or someone who needs a practical daily driver which falls in the range of cars or sedans. But if they needed towing and versatility than an SUV or truck would fit them best. Finally in my research, I looked at the ways available for consumers to be able to buy a car. In this, I found that the two most popular ways of purchasing a car is to lease it (have a 2-4 year contract with the car) or purchase it upfront and eventually pay it off full price. When you are leasing a car you have to pay monthly payments for the duration you are using the car but will eventually have to turn it in at the end of the lease. People lease cars because it is more cash effective in the short run and allows them to drive more expensive cars for less money. Bur when leasing you are limited only to a certain amount of miles a year and are not allowed to customize it or void the warranty. While buying a car out full price is more expensive in the short run, it is actually much cheaper in the long run than leasing. Owning a car gives you complete freedom with what you can do with the car or how much you can drive it.

In conclusion, consumers have many reasons when it comes down to choosing the right style and car model to buy, the options on it and the way of purchasing it. More importantly my research has taught me that in large expense purchases there is a lot to look over, and before you make the purchase make sure you have the absolute right product that fits your needs and make sure you have researched it and become an expert on it. But finally to make sure that you can financially make the right decision and that it won’t negatively affect you.