Determinants of demand for cars

Price of cars

When price goes up, quantity demanded goes down (contraction in demand)

When price goes down, quantity demanded goes up (extension in demand)

Income

Price of other goods

Complement goods

Subsitute goods

E.g motorcycle, train, public bus and more

When price of motorcycles goes up, quantity demanded of cars goes up (shift right)

When price of motorcycles goes down, quantity demanded of cars goes down (shift left)

When price of car maintenance goes up, quantity demanded of cars goes down (shift left)

When price of car maintenance goes down, quantity demanded of cars goes up (shift right)

E.g oil, car insurance, car maintenance cost and more

When income goes up, quantity demanded goes up (shift right)

When income goes down, quantity demanded goes down (shift left)

Taste and fashion

When tastes for consumers changes to cars, quantity demand for cars goes up (shift right)

When tastes for consumers changes from cars to other vehicles, quantity demand for cars goes down (shift left)

If the advertisement is successful to influence customers to buy cars then quantity demand for cars goes up (shift right)

If the advertisement is unsuccessful to influence customers to buy cars then quantity demand for cars goes down
(shift left)

Population

When the population increases, the quantity demanded for cars goes up (shift right)

When the population decreases, the quantity demanded for cars goes down (shift left)

Expectations of future prices

When the future price of cars is expected to increase, the quantity demanded for cars today increases (shift right)

When the future price of cars is expected to decrease, the quantity demanded for cars today decreases (shift left)

Weather

When it is a rainy season, the quantity demanded for cars goes up (shift right) since in cars you cant get wet compared to other vehicles such as motorcycles and bicycles

When it is not a rainy season, the quantity demanded for cars goes down (shift left) since you wont get we in other vehicles such as motorcycles and bicycles