Why is Cadillac's resale value low?
2 Answers
Cadillac's low resale value is due to high maintenance costs in the later stages. Here is a detailed introduction to car resale value: Calculation: The resale value of a car is calculated based on the original ex-factory price of the vehicle. According to the automotive industry's "10-year depreciation method," the depreciation rate is 15% annually for the first 3 years after purchase, 10% annually for years 4-6, and 5% annually for years 7-10. Influencing factors: Car resale value refers to the ratio of the selling price of a particular model after a period of use to its original purchase price. It mainly depends on multiple factors such as the vehicle's performance, price fluctuation range, parts costs, and maintenance convenience, essentially reflecting the comprehensive level of the vehicle. The advantage of models with high resale value is that their prices in the second-hand market are less affected by price reductions, reducing the risk of economic loss due to product depreciation for some car owners.
As an average consumer, I find it quite common for Cadillac to have low resale value. My personal experience was owning a CTS for a few years before selling it, and the price dropped significantly. The main reasons are that the brand image hasn’t been strong in recent years, with people preferring European brands like Mercedes-Benz and BMW. Cadillac offers steep discounts on new cars, leading to oversupply in the used car market, which drives prices down. Additionally, frequent minor issues, such as electronic system failures, result in expensive repairs, making used buyers hesitant to pay a premium. Economic fluctuations also play a role—during inflation, more people buy cars, but luxury vehicles actually lose value faster. I think opting for mass-market or Japanese brands when switching cars ensures much more stable resale value. Overall, weaker brand recognition compared to competitors, combined with market volatility, leads to rapid depreciation in the used car market.
