Secret Tricks that Car Makers Use in Keeping the Prices of New Cars Down


The prices of new cars models that are released in the market are usually higher compared to those of their predecessors or let say compared to the models of the previous years. There are actually a lot of reasons for the increase in their prices and one of this is the use of more advanced components that make new car models more efficient and better compared to those that were produced in the past.

Fortunately, this particular condition is not always the case. This is because most car makers are applying some tricks to maintain the prices of new vehicle models down. They usually do this so as to ensure that the demand for the upcoming car models would be higher. To provide a clearer picture, this article enumerates some of the most common tricks that vehicle manufacturers use to keep the prices of new car models down and these are the following.

1. Sourcing powertrains from older or other car models

One of the most common and popular tricks that car makers use to prevent the prices of their new car models to go up is using some of the powertrains that were already used in older or other car models. What these car makers usually do is that they would source the engine and the transmission of the new car model’s predecessor and perform a series of tune-ups and upgraded on the vehicle’s components as well as on its mechanism. By doing this, they are able to come up with a unique powertrain that they could use on the new and upcoming vehicle models.

Since the car makers have only made some revisions instead of producing a brand new powertrain, their production costs are reduced allowing them to implement slight increase in prices. This particular trick is one of the reasons why certain models such as the Chevrolet Camaro, GMC Acadia, and Buick LaCrosse are using almost similar or slightly upgraded engines as well as transmissions.

2. Working with competitors

Another trick that car makers use to keep the prices of their new car models down is to work with other manufacturers and in most cases they usually develop work-related ties with some of their closest competitors. Working with other car makers or even competitors was proven as a good strategy since this helps them reduce the costs of producing new car models. Instead of spending larger amounts of resources in developing new components that would be used on the new models, the partnership or the alliance among car makers enable them to exchange resources and ideas allowing them to cut their expenses down.

3. Removing unnecessary vehicle parts

Removing some of the unnecessary vehicle parts and designing the new car models without these is also a good trick that most vehicle manufacturers use to keep the prices of these vehicles down. Just like the first tricks that were mentioned earlier, this strategy helps in reducing the production cost of the car makers and the savings are then translated to minimal or zero percent change in the price of new car models compared to the previous year’s version. A good example of the unnecessary parts that are usually not included on the base version of most car models are the fog lights. Most of the time, the fog lights are offered as an optional equipment allowing buyers with tighter budget to purchase a vehicle that are not equipped with these and save a few dollars.

About Marty Bay

Marty Bay is the Lead Writer and Editor for VPM Automotive. He has researched and reviewed 100s of cars, and writes extensively about car technologies.
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