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Old 3rd January 2013, 16:46   #1
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Default Year-end price hikes : Fact or Gimmick?

The moment year end is around corner, we see our newspaper sizes doubling up with countless ads/deals/promotions etc. It’s quite understandable that every seller/manufacturer has its targets set in the beginning of the year and they need to meet the targets by year end. Sometimes they really reduce prices or give bundles offers etc to push more products.
However in case of car manufacturers I have seen them literally hijacking the pleasant car buying experience and turning it to a nightmare quoting upcoming catastrophes. You often find car ads with headlines “Diesel prices to go up by 10%”, “Govt proposing 5% hike in import duty” etc.
A very common practice to push more sells in last quarter is to tell the customer that "prices are going up in new year". I have specifically noticed it in last 3-4 years when the year comes to an end. You read a lot of articles on prices going up in January and usually nothing really happens.
It usually makes sense to revise the prices after budget (March or April) but the dealer always keeps on pushing the fact that "this model will get costlier by X% in January, buy now sir".
How much of it is fact and how much is gimmick? Should a serious buyer needs to keep this in mind when he is looking for a new car?
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Old 4th January 2013, 18:48   #2
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Default Re: Year-end price hikes : Fact or Gimmick?

I think, you are wrong.

Just an observation.
I have purchased a news paper everyday in the month of December and Jan. (till date) looking for best possible offers on some cars.

Till date, i couldnt find any add from any manufacturer other than Audi and Merc. (Prospective Buyers Mindset )

I bought Times Of India. And till date, there werent any ads of cars in december 2012 and in Jan 2013.
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Old 4th January 2013, 19:19   #3
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Default Re: Year-end price hikes : Fact or Gimmick?

Its obvious that buyers do not want to go for products during year end. To some the time till Utarayan is not auspicious. There are various factors but bottom line is vehicle sales see bit of slump during year end.

So to clear the inventories by the year end(they can never do so in reality) manufacturers as well as dealers try to throw in discounts and freebies.

It was only from past few years we have been hearing rumors and news manipulations such as Diesel Tax, Increase in prices etc. trying to encash our herd mentality.

Why year end, we will see many more ads just before Union budget isnt it ?

So coming to Price hikes, it can be both fact as well as a gimmick.

If a model is selling well, and continues to sell well. Invariably the manufacturer is going to charge a premium - hence the hikes. So all he has to do is to float such news about hike(No need to give Ads, all he needs is an article in TOI or economic times).

If a model is not doing great, even after discounts it will only get certain buyers. So such products continue to get discounts and/or eventually get discontinued. No body dares to hike prices for these products
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