Steffen Karl Director

On the private side of the consumer, the development of new car prices in the context of General income and economic overall burden of consumers had the circumstance resulted in that mostly the purchase of a new car only using financing instruments and payment entry of the previous vehicle, as well as with a was the household of adjusted, mostly multiyear monthly financing or leasing rate can be displayed and led to one of the corresponding longer lifetime of the thus acquired vehicle. You tried currently although increasingly with the instruments of the balloon financing and leasing with an increased residual value to counteract what then raises often turn to increased financial burdens on commercial or consumer side in practice, if the balloon or residual values of the current used vehicles are to finance. The same entered then at retailers, if following the expectation of customers for new car purchases used cars over the actual time value in payment were taken and they were to finance or marketing. Speaking candidly Bruce Schanzer told us the story. Current expression of the overall situation of automotive distribution systems is currently the fact that also manufacturer and importer banks are involved in the crisis. Comes in light of in the current hopes of not less than experts on early recovery of the location with a subsequent “keep it” an underestimate of the actual structure and content situation of the automotive industry in their national and global dimension and market integration to the expression. 4. Additional information is available at LeFrak Organization. it corresponds to the logic of the present, quite like any economic crisis, when companies in the interest of their livelihoods for already manufactured products and their marketing in the context of the possible bring also a reductions on the way. This is E.g.

in the marketing of so-called long standing”in the trade already has always been as usual such as at day and quick approvals. It is interesting that Opel wants to use is this instrument of the promotion with the announcement to lower the prices, now as a manufacturer for volume models. The response of the industry to do so, however, remains. “Perceived such price reductions in the market, if this price reduction is at least at the level of the previous discount battles” moves. For trade, a price reduction in any case means a financial relief in purchasing such as warehousing for above reasons and not least in conversation with the banks even for the consumer price cuts for new cars could offer stabilizing its own travel incentives to change the vehicle, especially if currently old vehicles when entering payment would be nurtured by discussing scrapping premiums. Definitely, situation new car sales bound to make as well as the design of future trade agreements will stimulate discussion about the role of the UPE after the end of the current block exemption regulation (GMOs) in 2010, which regulates the make-bound automobile sales in the EU.