Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

>car makers are incentivised to try to ensure their vehicles have decent resale value

Why? They are only incentivised to make more profit, and selling high-tech expensive cars that break after 10 years is great for that. The ones that will bear the cost of that will be either the financing companies (and it would be fun to see the market collapse as the current crop of shiny German cars hits the 2nd hand market and no-one is dumb enough to buy one), or those poor souls who insist on buying old-ish cars instead of leasing like everyone else.



Now days it is often the automakers themselves doing the financing/leasing, so if a model has poor residuals it directly affects their profits.

Even with third-party financing, the anticipated residuals influence the attractiveness of the lease offer. A cheaper lease offer means more sales for the automaker, and thus more profits.


Personally I don't think the market has yet caught up to the fact that today's new cars will make horrible purchases as the 3rd or so owner.

All the financiers have to do is make sure someone buys it for a good price after 3 years of being leased from new. That's not a bad proposition - the car will probably last a while longer with all of its electonic toys and gizmos working. It's the buyer after that (of which I am usually one) that will find out how expensive the car is to maintain.




Consider applying for YC's Winter 2026 batch! Applications are open till Nov 10

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

Search: