hard drive copy
Friday, August 15th, 2008The pillars of that program include striving for high quality and durability so its models will remain desirable even after they rack up lots of miles. Honda avoids building more cars than it can sell and adjusts its factory output to match consumer demand, Naughton says. It also avoids selling to car-rental and commercial fleets. Both strategies prevent over-supplying the market, which depresses used-car prices. Balancing supply with demand also negates the need for sales incentives, which reduce used-car values by reducing new-car values.
“We avoid at all costs being put in the position of stress merchandising,” Naughton says.
Korean automakers Hyundai and Kia each have one vehicle in the ranking — the Hyundai Accent places fifth and the Kio Rio seventh. But the brands aren’t as well regarded as Honda or Toyota, which likely contributes to their high depreciation rates — 77 percent for the Accent and 78 percent for the Rio.
Another Korean-made vehicle, the American-branded Chevrolet Aveo5, made hard drive copy spot on the list and also has a high depreciation rate, at 73 percent. The Dodge Caliber SE, in sixth place, and Chevrolet Cobalt LS, in eighth, are the only other domestic models in the ranking.
Related Topics: