Why do automobile manufactures release new models at all times of the year?
People shopping for cars today, face the same decisions they did in years past, 2-door or 4-door, car, truck, van, or SUV. The idea of buying versus leasing is now on the table once 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 all-new models, others radically different, while still others with only slight alterations.
Manufacturers are using the release of the new 2008 products as more of a strategy than in years previous years. They realize they they have the power 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 to much competition between the manufacturers. All the automakers were introducing their new lineup 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 relatively 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 opt to pay more for the 2008 because the 2007 does not seem quite so 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 (heavier incentives) and the profits for the dealers can be significantly higher on the fresh 2008 products.
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