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3. Technological Advancements The quest to meet the 8% improvement benchmark has spurred innovative technologies within the automotive industry. From advanced battery technologies to improved combustion engines, manufacturers are investing in research and development to enhance vehicle performance. This not only benefits consumers with better products but also drives economic growth through the creation of jobs in technology and engineering sectors.


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The broader economic landscape plays a critical role in car pricing. During times of economic prosperity, consumers are more likely to spend on higher-end vehicles, resulting in higher average transaction prices. On the other hand, during economic downturns, buyers may opt for more affordable models, leading to decreased demand for luxury vehicles. Interest rates also play a significant role; lower rates make financing more accessible, while higher rates can deter potential buyers, impacting overall car prices.


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