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Luxury brands depreciate at a higher per-day-per-mile amount than non-luxury brands. A trivial amount of research will prove this out. No disrespect intended.
by jmatthews 13y ago
Luxury brands depreciate at a higher per-day-per-mile amount than non-luxury brands. A trivial amount of research will prove this out. No disrespect intended.
- nilkn 13y agoNo disrespect taken at all. I don't have any problem admitting I'm completely wrong on something. I'd be glad to learn more about the topic. However, a trivial amount of research has really only served to seemingly complicate the matter rather than confirm it either way. For instance, luxury brands fared well here: http://forums.motortrend.com/70/1044466/the-general-forum/consumer-reports-10-best-and-worst-cars-for-deprec/index.html http://forums.motortrend.com/70/1044466/the-general-forum/co...
- jmatthews 13y agoAhh, when determined as a percentage of msrp the field gets murky. But 10% of a $20,000 msrp is markedly different than 10% of a $70,000 msrp. In raw dollars higher msrps depreciate by a much larger whole dollar amount, which would be reflected in the depreciation component of a pre-owned lease. Also the luxury examples in your provided link trend towards "niche" luxury models. It is possible on some models at certain times to be a car new and re-sell it for a profit immediately. (Examples at current are the Range Rover and the new Corvette.) These markets are extremely fickle though. A final point having read the comments of your link. When they rank cars by the factory residual value they do not discount that manufacturers attempt to prop up resale value by inflating residuals and writing offf the loss at lease maturity. Accounts based on that should be discarded or at least fact checked by an independent source, such as ALG. https://www.alg.com/ https://www.alg.com/