Motor Trade Economics Chapter 4


This short e-booklet poses the fundamental question – what impacts on the the traditional automotive retail dealer business model and is it viable for the future. It puts forward the proposition that understanding simple economic and business planning concepts, such as price elasticity, GDP and business planning can help dealers to understand the drivers of demand and how to maintain their own profitability.


Chapter 4 explains links between Interest Rates, the Yield Curve and Money Supply on the demand for passenger cars.