During the 2008 recession, a lot of industries collapsed do to the recession. The car industry was one of the many industries that collapsed during the recession. The car industry was forced to pull back the leasing deals and the other financial stimulant that led to an increase of their sale numbers for many years prior to the recession. However, the car industry is under a lot of pressure due to the record sales numbers of last year. Now the car industry faces a pivotal decision in order to match or surpass last year’s numbers. They have decided to go back to the leasing deals and other methods of selling cars that got the industry in trouble almost a decade ago. Car companies are offering gigantic discounts on many types of cars such
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Companies such as Lexus, BMW, Mercedes-Benz, Audi, and Acura get their cars out by mostly leasing. More than half of the cars made by these companies are leased out to the public. However, according to Experian Automotive, the three that are leased out the most are the Honda Civic, Honda Accord, and the Toyota Camry. Now even though leasing cars help bring the sales numbers up, leasing poses a threat to the car industry. Just like in 2008 when the recession hit, car companies were left with tons of cars coming off leases, which officially makes them used, and this caused the value of used cars to plummet. Hopefully, with the car industry falling back on the tactics that cause the industry into a recession in 2008, the industry will not face the same outcome as they did before. This article relates to the business cycle that we talked about in Chapters 8 and 9. Mainly, it relates to our conversations about recessions. It also relates to Chapter 3 when talking about surplus, supply and demand. In 2008, the car industry had a surplus of used cars due to the gigantic amount they leased out, but when the lease was over and the recession hit, the demand for used cars went down and they were left with a supply of used cars they had no idea what to do
Companies such as Lexus, BMW, Mercedes-Benz, Audi, and Acura get their cars out by mostly leasing. More than half of the cars made by these companies are leased out to the public. However, according to Experian Automotive, the three that are leased out the most are the Honda Civic, Honda Accord, and the Toyota Camry. Now even though leasing cars help bring the sales numbers up, leasing poses a threat to the car industry. Just like in 2008 when the recession hit, car companies were left with tons of cars coming off leases, which officially makes them used, and this caused the value of used cars to plummet. Hopefully, with the car industry falling back on the tactics that cause the industry into a recession in 2008, the industry will not face the same outcome as they did before. This article relates to the business cycle that we talked about in Chapters 8 and 9. Mainly, it relates to our conversations about recessions. It also relates to Chapter 3 when talking about surplus, supply and demand. In 2008, the car industry had a surplus of used cars due to the gigantic amount they leased out, but when the lease was over and the recession hit, the demand for used cars went down and they were left with a supply of used cars they had no idea what to do