Supply and Demand Analysis

Supply and Demand-How it Relates to the Auto Industry I.<Tab/>SUMMARY: Customers had begun to find different ways to solve their transportation problems. The luxury of renting a vehicle was outweighed by the opportunity to save money. This trend continues today. According to this article on the Auto Rental News website, the fact that revenue numbers for the third quarter of 2002 indicate that the auto rental industry is continuing to …showed first 75 words of 866 total…

…showed last 75 words of 866 total…purchases. These special finance offers are effectively ruining the used vehicle market throughout the United States. With used vehicles bringing less money, auto rental companies are hesitant to sell off last year's models. As a last resort, rental companies are offering ridiculously low rates to the consumer. While these rates have served to lower the average daily rental rate across the country, they have done little to increase the countries reduced demand for rental vehicles.