Hacker News new | past | comments | ask | show | jobs | submit login

>(W)hich I bought second hand a couple of years ago

Would you consider buying a NEW Volvo? If not, your purchase exerts little to no pressure on the only market which Volvo is concerned with, namely the market for new cars.

Yes, a reputation for reliability increases the demand for used Volvos thereby increasing the resale value which positively factors into the decision to purchase a new Volvo. However, the increase in "value" to the buyer of the new Volvo is so marginal that it is overwhelmed by any number of other factors involved in the final judgement of value in the decision to purchase a new car. A Volvo V70 of similar vintage to yours can be had for anywhere between $1,600 and $2,500 depending on condition according to my local Craigslist. If their reliability is so well regarded that a Volvo V70 is hypothetically worth 50% more than an equivalent Subaru wagon, resale premium afforded to the original buyer is just $1,250. That premium is so small that a manufacturer's sale incentive can wipe it out entirely, nevermind the fact that many of Volvo's competitors are less expensive by a far wider margin.

Basically, my point is that long term reliability doesn't really matter to manufacturer's beyond a certain point. As long as the vehicle meets the expectations of the original buyer and remains useful enough to keep the resale value out of the gutter (which doesn't appear to be the case with Volvos, at least in my area), the manufacturer has no incentive to further improve the reliability of their products.




Resale value definitely affects new car purchasing.

For one, lease prices are partly determined by the expected resale value, and a lot of new car drivers get them by leasing them


> Would you consider buying a NEW Volvo?

Yes - sorry I forgot to add that bit :)




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: