Automobile Values

When considering supply and demand for automobiles, one must take into account its economical value, reliability, gas efficiency, insurance costs and whether the vehicle is domestic or imported. There are some of the main factors that play a major part in determining the supply and demand analysis in certain vehicles. While the dealer prices are the prices (costs) that the dealership has to pay to have the vehicles in their dealerships. Prices in which dealerships base their vehicles on are known as sticker prices. Therefore, the dealership’s profits would be the difference between the sticker and dealer prices. Car dealerships use target prices to forecast an ideal price for selling each of their vehicles. If they manage to sell equal to or above their target price, they can then make arrangements to raise the sticker price of their vehicles for a much-needed increase in profit the next fiscal year. The manufactures also inform dealerships whether or not a specific type of ca...