Well stated. I would like to know where in my argument did i relate the two. In fact time and time and again i emphasized that we are assuming they are equally as reliable. Having this and other variables the same as you state, which one would you buy? You’re right about the perception aspect. I understand your point about the Prizm/Corolla, same thing that happened with the Isuzu Trooper/Honda Passport and the Dodge Colt/Mitsubishi Mirage. There are very few cases proportionally though. How do you think this perception came about though? Thin Air? In the 60’s and 70’s you would be laughed at if you were drivin “one of 'em Jap cars”. Well i kinda nowadays laugh at those driving American Sleds. Did the Japanese cars improve their reliability and reputation, or have the American brands decrease theirs?
BTW as for your rental fleet argument: You will find that an increasing number of car rental companies, Hertz or Avis for example are expanding and replacing their fleet vehicles to accomodate more imported brands i.e. Camry’s and Accords. Have you seen changes in their resale values? Honda and Toyota has outsold itself every year running, making more cars than ever before… Are they flooding the market? As a dealer rep, we sold 300 Hondas a year to Hertz, that was just my dealership. Still, resale value of those cars remained the same. Toyota sells countless Tacomas to business fleets, yet it has the highest resale value amongst small p/ups. Why is that? you think these companies are making bad business decisions? Do you think they are trying to get a better return on their purchase? Simple economics will go only so far shortyoh. Fact remains, as you say, PERCEPTION is the true culprit and large part of depreciation- not through increased supply, but the lack of demand. That perception though is a result of the brands’ reputation and reliability history…can argue that?