The opportunity cost of a purchased car is determined by how? New cars and prices

2024 Author: Erin Ralphs | [email protected]. Last modified: 2024-02-19 11:41

Cars are a real headache of the modern generation. After all, absolutely all people want to have a personal vehicle, but not everyone can afford a good, and most importantly new, car. Part of the snag lies in the inability to find a more economical and profitable option for the acquisition. New cars appear from month to month, and their prices are very high. Do you think that a high-quality and new car can be purchased exclusively in car dealerships? We hasten to please you (and upset someone), because this is far from the case.

Good value

There is such a thing as opportunity cost. This is an economic term that implies the most favorable cost of any product in the event that the buyer has the opportunity to choose. It's the same with cars - overpaying in car dealerships, we resort to the least favorable price, which means we spend more money. Opportunity costpurchased car is defined as the difference in price of the same brand and model of vehicle, but from two or more different sellers. Thus, in order to purchase any model cheaper, you need to clearly know how to determine its market price and, in fact, where exactly you can find a better option for purchase.

Cheat car dealerships

The market value of a car is its original price, so to speak. That is, a cost that is equal to the cost of its production, optimization and entry into the market. Do not forget that all car dealerships, without exception, wind up the percentage of the sale, which affects the price of the car. This, of course, is not a secret to anyone, but the buyer does not feel better from realizing this fact. Therefore, the question arises: how can you most successfully buy a car, in other words - buy it cheaper?

Chasing cheapness

It is worth making a remark right away - the term “cheaper” does not sound quite correct, because the fact is that, chasing a more favorable alternative price, the buyer often makes a choice in favor of less reliable and quality cars in terms of assembly. Sometimes such a choice is made even in the case of a difference of several hundred dollars. Here, the opportunity cost of a purchased car is defined as the consumer's money spent on buying a car. That is, we do not take into account the availability of the maximum configuration or any other additional automotive bonuses. In this case, we are only interested in the standard configuration withminimum set of services. It is clear that it makes no sense to look for such an option in large car dealerships, because even if you still find such a car, its price will be noticeably higher than its original market value.

Used car

In addition to visiting a car dealership, there are at least two more options for purchasing a quality, albeit used, car. And before we look at them, I would like to warn future car owners that estimating the cost of a car is extremely important here - of course, if you are still not giving up on the idea of significantly saving your money.

Even if you yourself do not know what the initial price of a particular car is, you can always resort to the services of professionals who will quickly tell you the average price on the market, and possibly help you find a product for sale with exactly that price. These people have a working principle similar to that of consulting agencies.

Factors affecting cost

The cost of cars has always varied and depended on various economic factors - we do not consider all kinds of local economic crises or the rise in the cost of certain materials and equipment, although, of course, this also contributes. We are talking primarily about the policy of a particular automobile concern - it is he who sets the policy of prices, production and service. And it depends on him how much this or that car of his brand will cost.

Car Dealers

So, back to the alternative options for purchasing a car. As we have already said, there are at least two of them, but an inquisitive person will surely find additional ways to reach a reduced cost. The first option is quite interesting, although it will take a lot of time for someone who decides to follow this particular path of solving a difficult situation. It's simple - you just need to find a car dealer who sells used cars of various brands. Of course, we are talking about machines that are in good condition and suitable for service for a long time.

Here, the opportunity cost of the purchased car is defined as the profit that the dealer will receive from the sale. After all, he does not need to "unfasten" interest to anyone, especially if we are dealing with an unofficial dealer. And yet there are pitfalls here - not only can such a "seller" be dishonest about the deal, but they will also slip you a low-quality product. Therefore, always carefully follow his words and actions, carefully inspect the cars he sells. Well, if you are not such a connoisseur of cars, invite someone with you who is definitely well versed in this. Otherwise, a not very pleasant turn may occur, after which you will be completely disappointed in the services of such "entrepreneurs".

Buying online

The second option is an even more cost-effective way out of the situation - you can buy a car on the Internet. In thisIn this case, we do not mean online salons and dealer sites, but a local online newspaper or a site with advertisements for the sale of goods, including cars. Do not neglect this opportunity to buy a car, because, as a rule, the prices on such sites are lower, and the choice is greater. Of course, here you need to be even more careful than when dealing with a dealer, because you still buy a car from another owner who could handle it in a variety of ways. In addition, such sites often have a special table of car prices, according to which you can determine the approximate price of the car you want to buy.

Difficult choice

As you can see, both of these options are great for finding a better value for a vehicle in good condition. The latter, by the way, is not always true - sometimes you can find a significant difference in price, but the model will be so worn out or even broken that buying it and repairing it is even more expensive than buying it at a car dealership with peace of mind, knowing that the car is new and not rolled. However, this is where all the advantages of car dealerships end. Indeed, in this case, the opportunity cost of a purchased car is defined as the difference in the funds spent on the production and production of the car, as well as its maintenance. Do not forget that the client of the car dealership is serviced for free for some time. What can not be said about dealers or individuals.

In any case, you should always look for a more profitable option -because we, and only we, are the masters of our destinies and means!