When it comes to purchasing a new or used vehicle there are many factors that can play a role in what type of vehicle one may choose. There are so many types of vehicles to choose from yet one may choose to purchase one that receives better gas mileage because of gas prices, while others may purchase a hybrid. In most cases the type of vehicles we purchase have to do with the quality and price of everything else around us.
I have recently purchased a Toyota Camry because they have a reputation for being very reliable and there are many of them. Many Americans own Camry’s because of the reasonable prices and reliability. Since there are many Camry’s the prices for new and used Camry’s are reasonable and lower priced, quality and quantity. Even though Toyota Camry offers a hybrid, with gas prices continuing to rise will affect gas efficient vehicles and more car companies will offer hybrids and other alternatives for drivers. Even though there are still many Toyotas there was a shortage at one point when the earthquake in japan struck. It raised the prices for some limited cars (Bill Vlasic 2011).
There are so many different types of vehicles and so many options to choose from and the demand and supply for vehicles is high. The demand for smaller cars is higher then bigger trucks and SUVs because of gas prices. The supply for both is still high however the price for SUVs is becoming lower because more people would rather purchase economical over luxury. In the future the demand for larger vehicles could decrease even more. This is something that is very possible because gas prices are becoming higher due to the shortage is oil refineries and hurricanes on the gulf coast. Many people already are substituting SUVs for smaller cars that are better on gas mileage.
For many people having a vehicle is a must because it is a primary means of transportation. In the long run cars, trucks, and SUVs may become price inelastic because people will find a...