The market trends for luxury cars have been tremendous in the recent years, and more people are trying to buy them. The prices of these cars have also risen, making it difficult for most people to afford. Some people even wait for several years before getting the opportunity to buy a luxury car.
A luxury vehicle is expensive because of its quality and the materials used in it’s making. You need not worry about the price, if you can afford it. Some companies are now offering low-cost loans that allow you to pay your luxury car over several years after buying it. However, if you want to buy a luxury vehicle, you must be ready to part with a significant amount of money.
For the firm to charge a higher price to the consumers it must carry out price discrimination, which is the purchase or sale of varying units of service or goods at price discrepancies indirectly matching.
The firm will be charging more for the luxury cars as compared to the normal cars. This is because it will be offering complimentary services such as; free delivery, free servicing, and free insurance.
The luxury car market has been growing steadily over the past few years with regards to revenues and volume. The market is expected to grow at a rate of 3.3% every year from now till date. The luxury car industry has also been growing in terms of product innovation and parts replacements. The introduction of new models has led to increase in competition among other companies in the market. This means that the prices for these cars have also been decreasing in order to remain competitive in the market