Why Do Foreign Cars Hold There Value

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Originally Posted By: ViragoBry
I can look out the window of my office and see a brand new cream-colored Lincoln MKZ with a brown vinyl roof. What a disgrace.


So...someone with no taste took it to a customizing shop and had it added to the car. Could have been the dealer, could have been the owner.

What exactly is your point?
 
Not many vehicles, foreign or domestic, hold their value as well as a Jeep Wrangler.

"The jeep is the only true American sports car!"
. . . . Enzo Ferrari
 
Originally Posted By: mrsilv04
Originally Posted By: ViragoBry
I can look out the window of my office and see a brand new cream-colored Lincoln MKZ with a brown vinyl roof. What a disgrace.


So...someone with no taste took it to a customizing shop and had it added to the car. Could have been the dealer, could have been the owner.

What exactly is your point?


It was an add to the post previous to mine

". . . or a BMW, Mercedes or Lexus dealer trying to peddle a fake convertible roof option? Or put them on dealer stock. I just hate when an L-M or Cadillac dealer does that. It just reinforces the downscale image of some of these cars in certain circles."

What exactly is YOUR point?
 
Originally Posted By: qship1996
Drive a typical new American car over 100,000 miles and it feels old and used up, while the foreign ones still feel near new at that mileage.


I sold my 2001 Ranger when it had 93,000 miles on it. The guy who bought it had a newer Lexus ES (2007ish). He said to me, "I was going to have a mechanic look at it, but it's so clean and nice I'll go ahead and take it." The truck was originally a fleet truck too.
 
Originally Posted By: c3po
Can anyone please tell me why foreign cars hold their value better than American cars.

It seems that American cars lose 40% to 50% of their value in the 1st year. I have been noticing this well before this bailout talk.

If you buy american or foreign and hold onto the car for 10 to 15 years there is not much difference, but if you buy american and trade it in or sell to someone else after 2-3 years you get killed.

Is this value thing because people perceive that foreign cars are better than american cars.


There, THEIR and They're

Sorry, one of my pet peeves
 
Originally Posted By: Junior
Originally Posted By: c3po
Can anyone please tell me why foreign cars hold their value better than American cars.

It seems that American cars lose 40% to 50% of their value in the 1st year. I have been noticing this well before this bailout talk.

If you buy american or foreign and hold onto the car for 10 to 15 years there is not much difference, but if you buy american and trade it in or sell to someone else after 2-3 years you get killed.

Is this value thing because people perceive that foreign cars are better than american cars.


There, THEIR and They're

Sorry, one of my pet peeves


How about some punctuation then? One of my peeves are those who try to correct others. It's rude.
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Originally Posted By: Zaedock
How about some punctuation then? One of my peeves are those who try to correct others. It's rude.
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Correcting others simply and politely is not rude.

Correcting others unnecessarily, or otherwise being a nuisance about it, is rude. That's really in the eye of the beholder, though.

The there/their/they're problem has to do with the meaning of the words, so IMO it's an important thing to get right. I also am of the opinion that Internet forum posts, especially when polite and short, are pretty low on the ladder of things one is forced to take seriously. So, I'd say Junior wasn't rude.

He did miss a period at the end of his post, but that was clearly a typo and had no significant bearing on his meaning. I'd say calling him out for that is a lot more pointless than calling out a there/their/they're error.
 
Originally Posted By: mrsilv04
Originally Posted By: ViragoBry
What exactly is YOUR point?


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You're the one that made a dumb statement...
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From agressive to passive in two posts.

Bi-polar much?
 
Originally Posted By: Zaedock
Originally Posted By: Junior
Originally Posted By: c3po
Can anyone please tell me why foreign cars hold their value better than American cars.

It seems that American cars lose 40% to 50% of their value in the 1st year. I have been noticing this well before this bailout talk.

If you buy american or foreign and hold onto the car for 10 to 15 years there is not much difference, but if you buy american and trade it in or sell to someone else after 2-3 years you get killed.

Is this value thing because people perceive that foreign cars are better than american cars.


There, THEIR and They're

Sorry, one of my pet peeves


How about some punctuation then? One of my peeves are those who try to correct others. It's rude.
06.gif



Wasn't trying to be rude. IMO, like it or not, everyone on message boards (or any written form) is judged by their grammar. I make my share of mistakes and spelling errors too. If I can help someone out great, if not, that is a choice too. If we all took the attitude to try to learn something new everyday the world would be a better place. Sorry for the off topic comments.

Happy Holidays
 
I don't see how any of these guys can survive. They need to do 2 things. Consistently make cars that are better than their Japanese rivals to alleviate their perceived quality issues, and offer these vehicles for significantlly less money to get these people to even "take a chance" on their vehicles in the first place. This will take time and money, 2 things they don't have.
 
Originally Posted By: Volvohead

I don't know where you live, but I live in a fairly affluent region. And folks with real disposable income do NOT buy new Cadillacs and Lincolns. They buy BMWs, some Audis, Mercedes and Lexues, and the occasional Jag.


Around here, the car someone drives is not likely to be a good indicator of their wealth. There may even be an inverse relationship - I'll bet that most of the people driving around here in BMW and Mercedes leased them and don't have two quarters to rub together that aren't owed to somebody else.

Anybody who gives a fig about resale value probably couldn't afford the car in the first place.
 
Originally Posted By: d00df00d
Originally Posted By: OVERK1LL
I've driven a lot of vehicles. I don't recall a domestic vehicle that would do THIS:

I saw an Explorer that was [censored] near doing that over some speed bumps.


OK, I actually owned an Explorer. And this is Canada. We use road salt like no other. It's still going. And the frame is just hunky dory.

The issue depicted is a RECALL, covering Toyota trucks right up to 2004, where the frames were junk and simply rot out.

2404409316_09e4d887ed.jpg


But the PERCEIVED quality prevents many from acknowledging that these problems EXIST. As with the sludge problems with the millions of engines affected.

There's no magic halo over the heads of Import manufacturers. They have issues as well.
 
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My Explorer was a rustbucket, but the frame was very solid. The frame and floors were actually in great shape, but the rockers and header panel were shot. The rust on my Explorer was 100% preventable though...it spent 12 years in PA with only one coat of rust proofing since new.
 
"Can anyone please tell me why foreign cars hold there value better than American cars."

A concept with which I'm familiar is called overdetermination: the idea that a single observed effect is determined by multiple causes at once.

To me, in a nutshell, perception is reality.
 
This is a touchy issue because people are so emotionally attached to their vehicle and their loyalty to brands. It seems that if you drive a car and have good luck with it, you're somehow cooler than those who don't. So everyone's eager to offer up their own, individual anecdotal story about how they owned a brand X car, drove it for a million miles through an acid rainstorm over broken glass and it was the best car ever. So, based on that one story, brand X is the best brand ever. And that one brand Y car that had a problem is indicative of the fact that brand Y is essentially evil and anyone who drives one is a bad person. In marketing, few products have as much loyalty and consumer devotion as autos.

The big 3 are in a world of hurt and despite all the apologizing that fans are doing for them, excusing and explaining their sins of the past, they have made mistakes in business that typically are punished in a free market by bankruptcy. Similarly, "foreign" makers (most of their cars being made in Canada or America) have been rewarded by doing something right. Whether the issue is quality, engineering, good designs, longevity, styling, stigma, whatever, perception truly is reality.

As much as people are lighting torches and beating the "Buy Domestic" drums, you cannot argue with the fact that the big 3 screwed up. They just came through a very long and sustained period of historic prosperity in the economy. They should be rolling around in money. They should be stuffing the seats of new Taurus' with $100 bills. And yet, they have but weeks left until they fold. Sorry, you guys dropped the ball.

You may defend them and tell stories about how your daddy's 74 Merc was the best darned car ever, or how your 85 Rust-stang 5.0 was so cool, but at the end of the day most people are NOT BUYING big 3 cars. You're observations driving through your neighborhood and seeing people who prefer Caddy's to Bimmers cannot change the facts - the big 3 are being out done in the market.

While Dodge is trying to give away cars, the local VW dealer is having his best month ever. Honda's are selling like mad. Maybe they're truly better cars, maybe the big 3's cost of labor is too high (when the guy screwing dashboards on a Buick makes more than his family doctor, something's wrong) maybe they're designed better, marketed better, sold better, priced better - whatever. They're doing it better.

By the way, that Honda Accord, Acura TL, Nissan Altima, Toyota Camry, Honda Civic, VW Jetta, Toyota Tacoma, etc. etc. etc. are all made in North America, using North American made parts.
 
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"... Honda's are selling like mad. Maybe they're truly better cars, maybe the big 3's cost of labor is too high (when the guy screwing dashboards on a Buick makes more than his family doctor, something's wrong) maybe they're designed better, marketed better, sold better, priced better - whatever. They're doing it better."

I haven't seen numbers for Nov but in Oct the F150 was still the best selling vehicle, 'only down 16% or so', while the Accord and Civic were down something like over 20%.
 
Last I checked, Ford still had 26 billion.... GM and Chrysler have no money. Poor example using the Taurus.

And "by the way", the profits from your "assembled in North America using some parts purchased in North America" cars still go to Japan.

Rust-stang? The car with the largest following of any vehicle ever produced? Good choice to pick on there "bud".......
 
I'm not "bud." I just finished helping a friend rebuild his Rust-stang because it was so poorly put together at the factory, it ate it's own head gaskets after 100,000 km's. According to ConsumerReports- a very common occurrence.

There's lots of stats out there, sales up and down, but Honda isn't asking the gov't for a bailout because they can't manage their business. Their profits may go to Japan, it's called the global economy. You can't argue with their success. The lack of profits by the big 3 are not being paid to the gov't - the gov't is covering up and bailing them out as a result of their losses.

I like some American cars, I'm not a domestic hater or pro-foreign fan per-say. I just think it's funny that indisputably the big 3 have failed as businesses and while we can debate the macro-economic benefits of bailing out an industry, everyone defends them in some romantically nostalgic way like they're trying to show their national pride.

They're just companies who made ridiculous mistakes and now are failing. They're not icons to be worshipped. You may love your Plymouth Reliant, but it doesn't mean that Chrysler deserves to stay in business.
 
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