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TOPIC: ARGUMENT73 - The following appearedin a memo from a manager of a car dealership.
"Ten years ago, long-term car leasingbecame available in our country of Mohilia as an alternative to outright carownership, and leasing has steadily risen in popularity. For each of the lastfive years, the number of people leasing new cars has surpassed the numberbuying new cars. The average age of cars driven in Mohilia is six years; hence,if new car leases again outnumber purchases this year, it is likely that themajority of drivers will be driving leased, not individually owned, cars.Therefore, we should change the focus of our business from selling cars toleasing them."
WORDS: 509
TIME: 01:53:23
DATE: 2010-3-19 11:50:20
The author argues that the company shouldswerve its business focus from selling cars to leasing them. To support hisclaim, he provides the data of leasing versus purchasing and average age ofcars. However, the evidence is flawed and the reasoning is not well-developed,which makes it indefensible through close scrutiny.
First of all, the author implies that thenumber of people leasing new cars outstrips the number buying new carsindicates that leasing is more popular than purchasing. Yet, this may be nottrue. For one thing, leasing cars may be for a short period, and chances arethat some people who cannot afford a car leases cars for one-day use severaltimes in a year, thus boost the number of people leasing cars. While on theother hand, buying cars is a one-time thing, not as flexible as leasing. Foranother thing, leasing and buying cars may not be on an exact oppositeposition. It is possible that in Mohilia, car sellers don't provide any tryoutfor the potential buyers, so they have to lease cars to try it out themselvesto make the final decision which car to buy. If this is the case, the fact thatthe number of people leasing cars surpasses the number of buying them providesno demonstration that leasing cars are more popular now.
Next, the author concludes that themajority of drivers will be driving leased cars with the fact that average ageof cars driven is six years and leasing cars outnumber purchasing ones. But hefails to consider the possibility that if the majority of cars driven now is boughtsix years ago, and the portion of cars purchased and leased is relatively smalldue to financial recession in the last five years. Even if there are moreleasing cars in road than purchasing, it by no means illustrates that thistrend will continue. Chances are that the financial recession that thwartspeople purchasing cars in the last five years is going to an end, and morepeople now are expecting a new car owned by themselves in the coming new year.
Last but not the least, the author suggeststhe business transition on the base of profit, but he overlooks how profit ismade up. Common sense told us that profit is equal to revenue deducting cost,while revenue equals to price per unit timing amount. The author bases all hisargument on a simple discuss of amount alone with no regards to unit price orcost is not persuasive to substantiate his point that a business transitionwill bring more profits.
In conclusion, the author fails to show usa justified trends that leasing cars are more popular to purchasing orillustrate us a substantiated conclusion that the requirements will be huge ordemonstrate us a persuasive spectacle that the profits will be boosted with hissuggestion. He needs to value his decision from more aspects like cost, unitprice, marketing requirements and trends and offers more convincing evidencesto make me accept his suggestion. |
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