Originally Posted By: d00df00d
My $0.02:
In general -- as in, there are some exceptions -- European cars are WAY more rewarding to own and drive. Even if the specs and overall build quality are similar, European cars usually have better ergonomics and far better driving dynamics (handling, feel, etc.). Those advantages are always there, even when the cars get very old. By contrast, American cars tend to be bland when they're new, and bland AND busted when they're old. Again, not always true, but mostly true. American cars are catching up in those respects, like they did in build quality. They just have a ways to go yet.
Moreover, some American cars really, truly are that [censored]. The Buick LaCrosse, Dodge Avenger, and Dodge Nitro spring instantly to mind; there are certainly more. They're terrible to drive and honestly feel like they'll fall apart.
Also, for the very recent American cars, there's the fact that people don't want to buy something from a company that they feel is about to go bust.
Those are all good points, and add up to this: which cars are worth maintaining, worth repairing, and worth keeping for a long long time?
If a particular car is boring even when new, the owner may very soon think about replacing it. If he's already decided not to keep it for a long time, then he will soon not bother maintaining it properly or fixing the little things when they go wrong.
If/when this attitude applies to all owners of Model X, then Model X will tend to have many sellers compared to the number of potential buyers... and resale values will go down.
MB, BMW, VW... they are not boring cars, whatever else you might say about them. So owners automatically tend to think about keeping them longer than domestic brands, and automatically think more about what it will take to keep them running longer. Surveys which measure how long each particular brand lasts nearly always show MB cars lasting the longest -- they may not be the best, but owners will spend the money to fix them because owners think the repairs are worth making. You just do not throw away a used MB like you would a used Kia or Dodge.
The other factor driving down values for used domestic brands is the constant, year-after-year discounting of new models. Big rebates and discount financing for new models reduce the value of used models. The Detroit 3 have to keep selling the new cars for whatever price they can get, because they need the cash flow even if they can't make the profits.
For instance, if a local Dodge dealer is selling two new Ram 1500 pickups for the price of one, then the resale value of used Ram 1500 pickups is not going to be too good. Likewise, if they are giving away PT Cruisers with the purchase of another Dodge or Chrysler car, the resale value for PT Cruisers will be poor.
