[Coleman_lot]

Hey, it seem that Odyssey will be redesign to a brand new style in 2004. It is very hard to keep up with the car maker now. They should keep the same look atleast 10 years. They keep come up with something new all the time. Everytime they redesign to the new look or style, it drop the value of the previous or current model. It seem that it is getting more and more expensive each time the new model year come out. Is there anything to regulate the automobile maker to keep the price down?

 

[Aardvaark]

Yup. It's called "planned obsolescence". Back in the 60's and before, American car makers changed the look every year to get people to trade for the next "all new model" which under the skin were much the same for several model years, but only looked new and different. At least looks stay pretty much the same for five or so years in most cases now.

<font face="Verdana, Arial" size="2">Originally posted by Coleman_lot:
Hey, it seem that Odyssey will be redesign to a brand new style in 2004. It is very hard to keep up with the car maker now. They should keep the same look atleast 10 years. They keep come up with something new all the time. Everytime they redesign to the new look or style, it drop the value of the previous or current model. It seem that it is getting more and more expensive each time the new model year come out. Is there anything to regulate the automobile maker to keep the price down?</font>

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'02 Ody EX-L(Mods: still considering options).
'96 Maxima SE(Mods: FSTB, RSTB, RSB, Winter Blizzaks on GXE rims).
'87 Honda mower(No mods).

 

[Neo Fender]

<font face="Verdana, Arial" size="2">Originally posted by Coleman_lot:
Hey, it seem that Odyssey will be redesign to a brand new style in 2004. It is very hard to keep up with the car maker now. They should keep the same look atleast 10 years. They keep come up with something new all the time. Everytime they redesign to the new look or style, it drop the value of the previous or current model. It seem that it is getting more and more expensive each time the new model year come out. Is there anything to regulate the automobile maker to keep the price down?</font>

Once a manufacturer has been paid for selling a new model, they care little (if any) about resale value - they already have their money. After that their goal is to attract new buyers and generally speaking, people don't want to drive what's already out there. They want something that looks new.

Manufacturers can't simply wait for sales to begin dropping to usher out a new model. There's too much lead time required to plan, design, engineer and manufacture a vehicle.

Also, federal requirements change frequently(crash protection, emissions, etc.). A certain design may reach a point where it is no longer cost-effective to modify.

Regulate automakers? Not likely. Americans are pretty vain about the cars they drive which is why so many trade-in their vehicles even though their existing vehicle may have been serving their needs perfectly. Many people seem to have a perpetual monthly car payment for this reason.

Five year on the same platform is not too bad of a stretch for the Odyssey, especially when you consider the competitive nature of the minivan market. Over time, designs become "tired" in the eyes of the public. New designs sell new cars.



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[Maugham]

<font face="Verdana, Arial" size="2">Originally posted by Coleman_lot:
Hey, it seem that Odyssey will be redesign to a brand new style in 2004. It is very hard to keep up with the car maker now. They should keep the same look atleast 10 years. They keep come up with something new all the time. Everytime they redesign to the new look or style, it drop the value of the previous or current model. It seem that it is getting more and more expensive each time the new model year come out. Is there anything to regulate the automobile maker to keep the price down?</font>

If automakers kept the same designs for 10 years, the current Ody would be coming out in the year 2006, since the first generation of Odys appeared about 5 years ago. Then, you would be waiting until 2016 for an AWD version of the Ody. Would you prefer it that way? If so, you are in luck, because you can go buy a previous generation Ody for a lot less money than a current generation Ody!

The same thing is true for computers - they are obsolete in just a few years, or sometimes in a few months, reducing their value. How about we force computer manufacturers not to come out with new models for 10 years? I'd be using a 1 megaherz processor and a 9600 bps dial modem instead of a 1.4 ghz cpu and a 1.5 mbps cable connection.

" Is there anything to regulate the automobile maker to keep the price down?"

Just about every time the price of something gets regulated, everybody suffers - including consumers. Look at the countries and industries where it has been tried; it doesn't work.

Regards,

Maugham<font color="#f7f7f7">

[This message has been edited by Maugham (edited 02-13-2002).]

 

[Coleman_lot]

I am tired of trade-in my current car for the new model all the time. But I can't help myself if they come up with the new model/look all the time. My current car value is worthless if I don't trade it in quick enough. I end up driving $32000 car with the value of $22000 with 1 years of ownership. I don't mind the new look, but the price is getting more outrageous each year. As you see the price go up, but our economy is still in the dump. My stock is 50% lost from 2 years ago. The workers layoff rate is at all time high. Just last week, I lost 3 friends through layoff and they stuck with their new car payment. As they raise the price each year when the new model come out, consumer are suffer. As everyone know, most of the workers haven't get their pay raise for the last couple years and don't expect to get a raise anytime soon either. Just a thought...!

 

[Neo Fender]

<font face="Verdana, Arial" size="2">Originally posted by Coleman_lot:
I am tired of trade-in my current car for the new model all the time. But I can't help myself if they come up with the new model/look all the time. My current car value is worthless if I don't trade it in quick enough. I end up driving $32000 car with the value of $22000 with 1 years of ownership. I don't mind the new look, but the price is getting more outrageous each year. As you see the price go up, but our economy is still in the dump. My stock is 50% lost from 2 years ago. The workers layoff rate is at all time high. Just last week, I lost 3 friends through layoff and they stuck with their new car payment. As they raise the price each year when the new model come out, consumer are suffer. As everyone know, most of the workers haven't get their pay raise for the last couple years and don't expect to get a raise anytime soon either. Just a thought...!</font>

There are basically two strategies that can be followed:

(1) Trade in your existing car every 3-5 years while it has some resale value. This way, you'll constantly have a car note but the amount will be offset by your trade in.

(2) Buy a good car, take care of it and drive it for 10 years or more and hope that you can get 120,000 miles or more out of it. This way your cost of ownership is averaged out over more years.

I choose the latter. All I expect from a car is to get me from point "A" to point "B" in safety, reliability and comfort. I don't care if it happens to be a 1984 or a 2004 model.

Any new car is going to lose 10-20% of its value as soon as you make that left turn out of the dealer's lot. This too can be offset by buying a low mileage year old model which would factor in this depreciation.

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[This message has been edited by Neo Fender (edited 02-13-2002).]