Friday, November 20, 2015

You Have to Walk Before You... Drive?

Source: http://www.scionoforlando.com/research/2014/2014-scion-fr-s-and-subaru-brz.htm
What Prices a New Car?
Before I can find the truth about how used cars are priced I had to first find out why new cars are priced the way that they are because that is one of the biggest factors on what the car will be worth later. However this wasn't an extremely hard task seeing as my dad owns a car dealership. So I asked him what determines the prices for new cars. For the first little bit of time he just listed off a bunch of different parts of the car, the exhaust system, the interior, ect. That was pretty common sense to me but then he said something that caught my attention. He told me that where the car is made is a big factor in what the car was priced at. He told me that a two of the exact same car, one made in the US and one made in China could priced $100s differently.

Example:
Take the Subaru BRZ and the Scion FRS for example. Those two cars were co-engineered by Toyota (Owns Scion) and Subaru. Exactly the the same car. Down ever exact detail those two cars' body frames (The actual frame of the car) are exactly the same. However these two cars cost different amount of money. So if you want the reliability of a Subaru, the price of a Scion, and the look of a sports car the FRS is the perfect car for you.

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