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This is a poor analogy. Historically there is a significant cost to making bad cars with frequent repair needs.
by smolder 2y ago
This is a poor analogy. Historically there is a significant cost to making bad cars with frequent repair needs.
- sulandor 2y agothis is a poor statement. the cost is not in dispute, but the bearer of it. historically car owners need to pay for repairs.
- smolder 2y agoLook at how the early 90s Ford Tempo resale value compared to Toyotas of the era. Trash cars don't keep their value. Toyota could then charge a premium because they were known for quality.
- throwaway290 2y agois resale value what the manufacturer wants? I mean they want to sell new cars after all...
- throw0101d 2y ago> is resale value what the manufacturer wants? I mean they want to sell new cars after all... They have a higher resale value because they have a reputation of lasting a long time, and people are thus perhaps more willing to pay a higher initial purchase price because they know their "investment" will last longer. And while they may not be planing to sell their car after only a few years, knowing that they'll get back more of their "investment" is also probably sitting in the back of their mind ('just in case').
- _heimdall 2y agoResale values do have an impact on new car prices. The better a vehicle holds its value the easier it is for the company to charge more for a new car. Its also worth considering that, for better or worse, very few people actually own their cars today. When you have a loan on it the resale value becomes really important. If the manufacturer wants the kind of customer that buys a new car every few years they'll need resale value that at least keeps up with the principle on the loan over that time.
- neuralRiot 2y agoAs somebody working in the modern automotive field I would like to disagree. The only incentive for car manufacturers is price point vs warranty period, after that you’re on your own. “Durability and “reliability” are no longer selling points for any automaker.
- listenallyall 2y agoAs someone not in the field, do you believe there is a true, objective, statistically valid way to tell which manufacturers (or which specific models) are more durable than others? All I see are consumer surveys, JD Power (more surveys), etc which, like most surveys, have wide error margins, and overall seem rather anecdote-based, and don't necessarily account for different stresses placed on the car based on driving style, diligence of maintenance, climate, etc.