It depends-- similar to how a balance sheet goodwill value can be interpreted, the "luxury of status"/Veblen component of a car quickly disappears after 3,5 or

It depends-- similar to how a balance sheet goodwill value can be interpreted, the "luxury of status"/Veblen component of a car quickly disappears after 3,5 or 10 years once the styling/features change. You're probably paying a more realistic value relative to the intrinsic value of the car at that point-- which places more emphasis on performance/aesthetics/reliability/costs to keep running, rather than status-- because the car will still likely still have the luxury components such as _Corinthian Leather_, ride quality, power, quiet ride, etc.. If you buy a 10 year old Lexus with 50k miles (out of a 250k expected lifespan) that retailed for $80k for $8k, and it still has the same functions/performance/reliability, did you get "less car" than when new, or did you just not pay the status premium? How much does the status premium change if it is $15k for an originally $75k car that has 50k miles and an expected longevity of only 120k miles? It is amazing to look at the used car market (for likely daily driven vehicles) and see how specific vehicles hold their value so much differently. There are specific Audis that have a proclivity to grenading their $20k-to-replace transmissions at 80k miles, or have a rear engine timing chain that is a low 5 digit replacement when it eats a guide. So these once $80k cars can be had for a steep discount given someone is paying a huge repair bill if it is to still be driven. Even with econoboxes from finance companies who happen to sell cars (think FCA) that have had consistent sludge/electrical/emission issues over the last 3 decades-- the price falls so much faster than an equivalent Toyota. While nowadays nearly any mass market car will be able to run for 200k miles, how much will it cost to achieve said goal? This is not entirely unknown to buyers, so prices do tend to reflect. It isn't foolproof-- companies like Toyota and Honda can make crappy cars, and bad companies can make good cars-- but the average consumer uses a lot of heuristic shortcuts/anecdotes/etc. to make purchasing decisions. The enthusiast segments are even more fascinating. Certain cars are going to be more akin to works of art, even if they weren't supercar expensive to begin with: see S2000's and mk4 Supras. Even further, some vehicles for some reason are not inherently reliable, have mediocre drivetrains and practical functionality but have a much shallower depreciation curve-- Jeep Wranglers.