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Essay / Automotive Industry Analysis - 861
Automotive Industry AnalysisSince the beginning of the automobile, there has been a history of used car sales and since the boom in automobile sales during the During the Second World War, an increasing number of used automobiles were sold. Immediately after World War II, there were approximately nine buyers for every new car produced. The sales staff simply had to find out who could afford a new car. “Afford” was defined as a cash payment. This situation existed until the early 1950s, when suppliers began to discover that new terms were creeping into the vocabulary of retail salespeople. such as “overage”, “discount”, “offer” and “conditions”. However, the focus was still not on the product but on the price. Additionally, the asking price was no longer final. There was also, if one could haggle a little, a price to pay. It was possible to negotiate with the dealer for the first time. During the 1960s, other new merchandising techniques were introduced. “Sticker price”, “park price”, “hard sell”, “50 on invoice”, “powerful advertising” and “free” accessories are just a few new innovations. The buyer was becoming more educated, better able to buy – thanks to 24 and 36 month payments – but remained confused and worried about the price. “Good deals” became “bad deals” after discussing them with friends and neighbors. Caution has become the watchword when buying a car. The advent of the 1970s brought more confusion to buyers with new procedures such as leasing, 48-month payments, credit unions, rebates, and consumer advocates. However, in defense of the consumer, books on “How to Buy a Car,” “American Car Prices,” and “Used Car Buying Guide” were published and sold by the millions. During the 1970s, auto salespeople became conditioned to the idea that customers were only interested in one thing: the lowest price. The atmosphere in auto showrooms did not change much between the 1970s and the 1980s. Most retail salespeople viewed automobile sales as a hard-selling game of "us versus them." Those who sold popular Japanese products became arrogant and insensitive toward their customers and those of us who sold American vehicles continued to believe that price, and price alone, sells vehicles. However, in the late 1980s, the winds of change began to blow. to make an impact on the automotive retail market. Today, in 2008, auto retail is very different than it has ever been in the past. In today's market, 5 out of 6 cars sold in the United States are used..