Why Do Domestic Cars Not Retain Their Value?
4 Answers
Domestic cars do not retain their value for the following reasons: Noise Issues: Body noise and rust problems. Rapid Updates: Too frequent model updates. Consumer Mindset: Issues with the mindset of domestic car buyers. Additional Information: Reasons: Every car manufacturer has its strengths and weaknesses. However, some manufacturers tend to conceal their weaknesses and exaggerate their strengths, leading consumers to believe that these manufacturers are doing exceptionally well, thus viewing them more favorably when purchasing cars. Future Trends: Domestic cars have already proven with their capabilities that current technology is fully adequate. With continued effort, domestic cars may introduce even more eye-catching technologies in the future.
As a seasoned used car buyer and seller, I feel that domestic cars don't hold their value well mainly due to low brand recognition and high maintenance costs. Their affordable new car prices are attractive, but after a few years on the road, buyers in the used car market often distrust Chinese brands like Geely or Great Wall, perceiving them as less reliable and prone to minor issues. My Chery QQ, after three years of use, was only worth one-third of its original price when I sold it, with buyers complaining about frequent electronic system failures. Additionally, while parts may be cheap, they're hard to find, service points are scarce, and accumulated maintenance costs significantly impact resale value. In contrast, Toyotas retain their value much better, so I suggest considering used market demand before purchasing. Domestic car manufacturers' rapid release of new models also accelerates depreciation of older versions, so buyers should be mentally prepared for this before making a purchase.
As an automotive technology enthusiast, I analyze that the low resale value of domestic cars stems from technical and quality defects. For example, the matching between domestic engines and transmissions is not precise, durability tests are inferior to joint-venture brands, and prolonged use often leads to abnormal noises and electronic failures. This makes buyers in the second-hand market worry about vehicle reliability, leading to aggressive price reductions during valuation. Although the low-price strategy for new cars is appealing, the long-term ownership costs are high, and frequent repairs accelerate depreciation. Some domestic brands also lack globally unified quality standards, and limited exports affect international resale value. When purchasing a car, it's important to pay attention to the manufacturer's technical upgrades and user feedback to avoid immediate depreciation after purchase.
From an economic perspective, the low resale value of domestic cars is due to supply-demand imbalance. Overproduction of new cars leads to a large supply in the used car market, but demand remains low as consumers prefer foreign brands like Volkswagen or Honda. This preference stems from historical negative perceptions of domestic brands, such as inconsistent quality. Insufficient demand drives significant price drops in the used car market, where new car subsidies don't prevent steep depreciation upon resale.
