How is the car price determined?
What factors determine the price of a car? What effect does the car price have on our lives today? Will the car price decrease? Is the car price increasing? How can we deal with the price of the car? What are the most important factors affecting the price of a car?
Car prices have become one of the most important economic and social debates in Iran in the past one or two years. In fact, many believe that the value of the car and the price of the car are not consistent with each other, and the price is being determined based on a factor other than the rational and correct valuation. In simpler words, it seems that car prices in developing countries are less concerned with car quality and efficiency and are mainly determined based on other factors such as inflation. But is this claim correct? What is the correct solution for this issue?
In fact, in this article, we want to address the question, how should the price of a car be determined logically? We also want to know if this logic is followed in the Iranian market or if other side factors have been added to it. The answers to these questions can give us a comprehensive insight into the car pricing situation. In a way, we want to know if buying a car in Iran with such a price can be an economic and cost-effective move or not?
Car prices are determined in different ways based on the economic system of countries. To put it simply, not only the price of a car but also any other basic goods are priced based on social and economic conditions. In our economic system, which is kind of an inflationary system, it is the government that is the biggest seller and the biggest buyer in the economic market. But in a tax system like the United States or many other European countries, the government does not have a direct role in the market and is only present in the market as a general manager.
In each of these systems, the type of car price determination can be different. If we want to look at the car price based on the tax system, which is considered the economic system of the top countries in the world, we will come to the point that supply and demand are the most important pricing factors in the market.
To put it more simply, in such an economy, the system does not allow the government to be able to play a role in determining the price of cars in an orderly manner. Because the government is not present as a seller or as a buyer in this market. The government only deducts its tax from the sale of cars. This type of economic market is also called free market. In this market, the amount of product supply and the amount of demand for it determines the price of the product. If the supply is more than the demand, the price will decrease and if the demand is more than the supply, the price will increase.
The problem is that in a free market, all producers have an equal opportunity. Therefore, any producer who wants to make more profit in a competitive and free market makes more and of course more innovative products. In such a system, the price of the car is determined in a fair way based on the quality of the car, its up-to-dateness, the manufacturing company and of course the demand for that car. In such a system, it can be expected that the price of the car is somewhat equal to the value of the car.
Car prices in developing countries that have chosen the inflation system as their economic system are determined based on various other factors. In general, it can be said that in the inflation economy system, the government is present as a big producer, a big seller and a big buyer. In a way, it is the government itself that can benefit from the fluctuations of the market, and because it is present as the biggest influencing factor in this market, it has the power and ability to control the pulse of the market.
To put it simply, the cars that enter the country’s markets by manufacturers are priced from the very beginning and undergo more price changes until they reach the consumers through intermediaries. But the decrease in supply in the country’s markets is accompanied by an increase in demand, and this demand causes the secondary car market to face a sharp price increase, and this sharp price increase can be a reason for the price increase of the manufacturer (the same government).
Therefore, in such a system where the private sector is not present and it is the government that can easily play with the dice, it cannot be expected that the price of the car will be determined in a fair and economic way. Therefore, in such situations, we should look for smart ways to use luxury cars without buying them, for example, renting a car in Iran can be a reasonable option.
The price of cars in developing countries is such that buying a car cannot be considered an economic and affordable move. This issue, along with other routine costs related to the car, has made buying a car in Iran practically an uneconomical move. Arad Seir company operates in the field of car rental in Iran and according to the basic needs of the people and with the aim of facilitating the possibility of the general public benefiting from various Iranian and foreign cars under the title of rental.
In fact, Arad Seir has made it possible for different sections of the society to have the opportunity to benefit from all kinds of cars based on their financial ability and needs, and to rent a wedding car and rent a car with or without a driver without any worries. . Be careful that the conditions for renting a car without a driver in Iran and with a driver are different from each other and the experts of Arad Seir company can accompany you in this field.