domin8
Just Plinking
- Joined
- May 9, 2011
- Posts
- 6,038
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- 10
Really, you think that having far less people want to buy a Tahoe won't reduce resale price? Must be new math
Yep. I sure do. Take a second and think about it. What do all vehicles in America with low resale have in common? Answer: Fleet Sales. Look at government fleets and rental car agencies. Yes, they buy the Tahoe too, but to a much smaller degree that the Expedition, Durango, and Commander, not to mention Taurus and Focus. This also explains why Hondas hold their values, and why Toyota's 5 year business plan focused on increased market share via fleet sales, thus decreasing resale value on Camry and Corolla. Honda doesn't have a fleet sales program. Fleet programs, fleet pricing, and fleet availability wreak havoc on resale values. When fleet vehicle availability reduces and fleet pricing increases a vehicle holds its value better. For a clear example of this, look at Ford over the last 5 years. They announced they were cutting fleet availability by 30% in their Q3 or Q4 2007 financial reports. That's when resale value started improving, percentage-wise, for their vehicles.
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