Car Release Strategy for 2008 models
Why do automobile manufactures release new models at all times of the year?
People shopping for cars today, appearance the same decisions they did in years past, 2-door or 4-door, car, truck, van, or SUV. The idea of buying vs. leasing is now on the table again. The idea of buying a car in the middle of 2007 and having to decide between a 2007 and a 2008 muddies the water. Some of these vehicles will be new models, others completely different, while still others with only minor alterations.
Manufacturers are using the release of the new 2008 products as more of a strategy than in years previous years. They become conscious they have the authority to create targeted traffic at given points of the selling season with these new releases. They no longer have to share the same pie with every other automaker. The traditional introduction of the models in early October created too much competition between the manufacturers. All the automakers were introducing their new listings at the same time and sharing the spotlight with all the other automakers. A model can be deemed a 2008 so long as it goes on sale after January 1st of the current year.
Consumers are split evenly between the bargain of the left over model and the idea of having the latest and greatest. There is certainly a price to be paid for stepping up into a new 2008 model. Many consumers go for paying more for the 2008 because the 2007 does not seem quite new anymore. While the bargain hunters can save even more during the buzz of the newly released models.
This is a win win for the dealerships. The manufacturers need to assist the dealers in moving out the 2007 products and the profits for the dealers can be significantly higher on the fresh 2008 products.
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