How Consumer Approach The Buying Decision Of Cars During Economic Crisis
An economic crisis can be described as that period when the economic growth is on a downward spiral. It is typically comprised of the recession and the depression sections of the economic cycle. Mason (2012) observes that these periods occur at the back of a recovery and boom periods; the positive economic growths where individuals are encouraged by the prevailing market conditions to borrow money from financial lending institutions and invest it. The economic meltdown is indicated by more people readily disposing off their luxurious properties as they prioritize their basic needs first. It is a time that necessitates great caution during decision making such as purchasing a car as the risks that are involved are at their highest. The basic factors to consider when making the buying decisions of cars are discussed here after.
Cars not only involve the purchasing costs but also many other after costs. A consumer thus considers the initial cost of buying a car. During economic crisis, most will go for the car that has the lowest price (or the affordable price) yet give them value for their money. Buyers will also consider the running and maintenance costs, for example the cost of gas. Economic crisis demands a slash on the expenditure and the consumers oblige by limiting their expenditure.
Economic crisis demands that one takes full advantage of whatever positives the economy has to offer. At such times, a car buyer considers the consumer protections that are there. This not only ensures less spending but also enjoying more benefits. A good example of such a protection is the warranty. The car dealers will offer different types of warranties and all of them will be of a different lifespan. Kolb (2012) advises consumers to go for the one that has the best terms and lasts the longest.
Each state has its own regulations that govern the market. Some of these regulations make things easier whereas others have the exact opposite influence. During these hard economic times, the easier and less expensive is the better. If consumers can afford the importation costs and comply with the regulations yet not strain on the budget, then they can buy. Buyers can also strike better terms with the local dealers.
Lastly consumers will consider the insurance costs. During such times it is better to go for the cover that is affordable and suits the needs of the consumer.
The aforementioned factors are basic in buying cars during an economic crisis. They are consumer oriented. Putting them into consideration goes a long way in safeguarding one against the economic meltdown.