Will repairing the bumper affect future depreciation?
1 Answers
Replacing the bumper will affect the car's price, and it certainly has an impact on the vehicle. Since the bumper is a physical component, depreciation will occur. After all, there is a difference between the original bumper and a replaced one, so replacing the bumper will definitely lead to depreciation, but it won't significantly impact the car's overall price. Below are some reasons why car prices may drop: 1. Price reductions to alleviate inventory pressure: High inventory pressure can have multiple effects, the most obvious being that it occupies more storage space and increases the difficulty of inventory management. Additionally, it can affect the cash flow of manufacturers and dealers. 2. Price reductions to promote capital recovery: The end of the year is a peak season for car purchases, with increased demand. Following normal logic, prices should rise rather than fall at year-end, but often, price reductions are implemented. On one hand, this is certainly to attract consumers in a competitive market, and on the other hand, it is to quickly recover the invested operating capital. By reducing prices to boost sales, the entire upstream and downstream industrial chain can be stimulated to accelerate operations, ultimately leading to greater profits.
