Inflation Now Even For Cars
News — On January 19, 2011 — 0 CommentsLast year the car price was raised and was marked as the highest in the last eighteen months. The highly raised price was the result of vehicle emission tax which was applied from third quarter in the previous year.
Mr. Mike von Hone chief executive of TransUnion commented “the increased car prices were marked as 4.3 in 4th quarter and approximately 4.7 in the full year.
TransUnion expected the price of all automotives to be revised because of the sudden loss occurred to the car manufacturers.
This forced the car manufacturers to increase the car price by minimum.
Car importers had gained great profit because of the less tax applied on them by the government.
Used car dealers had a great loss earlier as it had increased tax but later the tax burden was reduced to give a profitable environment to the used car dealers.
This led to increased new as well as old car prices. Used cars had suffered a tremendous loss. Discounts and other offers were offered to encourage more buying during this period but even this was not that useful. Buyers started getting cars at more affordable price and these cars were complete value for money product.
Every car manufacturer had to reduce the car prices because of rising competition. This resulted in getting fewer profit margins behind every car for each manufacturer.
Reduced tax for used cars could help in raising the used car sales.
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