Cars

             factor, along with gas efficiency and insurance cost. Particularly, the Honda Accord 2.3 .
             DX model is widely known for its economically low sticker price of $15,400 and a dealer .
             price of $13,715. There was a price increase of about $1,000 the year after. This may have .
             been caused by the fact that there are few substitutes for such cars in this industry. With .
             such a high demand for this car, dealerships each year could easily inflate their prices .
             above the estimated target prices and still move substantial amounts of inventory. .
             In comparison to the imports, domestically produced cars also showed a .
             significantly increasing price trend as well. While the imports boasted a higher sale value, .
             the domestic cars maintained a strong and consistent price range of their own. For .
             instance, the Chevrolet Cavalier had a sticker price of $13,160 along with a dealer price of .
             $12,305. Although the price of the Cavalier is not as imposing as the Accord, domestic .
             companies are able to reduce the price without having to worry about any overseas taxes .
             and freight rates. The price increase for this particular vehicle was partially due impart to .
             the domestic manufacturers" attempt to keep up with the rising demand and sticker price .
             of its imported counterpart. Also, the labor and material costs for domestic cars are more .
             reasonable than that of imported cars. .
             There seems to have been a decreasing trend in consumer demand for larger vehicles .
             during this past fiscal year. There are several reasons for such a downward trend in this .
             type of vehicle. Many consumers may feel that the sticker price for such a large sport .
             utility vehicle may exceed the benefits of these particular models. This is when we can see .
             that the consumer will weigh the benefits compared to the costs. We can see that with .
             such a downward trend in total sales and in total profits dealers might have felt that it was .
             out their inventory for incoming newer vehicle models.