Why is Infiniti Resale Value so low?

[InfinitiFreak101]

When looking for a used luxury car, I noticed Infiniti values on resale are far below average, especially compared to BMW, Mercedes, Lexus, etc. Even the Nissan 300zx seems to have kept a lot of value, but early q45's are budget priced at cheap carlots.

Why is Infiniti so hammered on resale?

[Jesda]

Nissan doesnt have Honda's reputation for dependability, which is what Acura has to fall back on. Acura also has the NSX halo car, which made quite a splash 15 years ago, despite being invisible now. Lexus has Mercedes-Benz's traits in a cheaper and better-built package, along with Toyota's reputation for dependability. Cadillac has urban street credibility and a rich heritage. Mercedes-Benz has a rich heritage and a reputation for engineering.

Infiniti and Lincoln suffer from periods of minimal investment. The mid to late 90s were unkind for Infiniti, while the 80s and early 90s were bad years for Lincoln. Lincoln hasn't really recovered, despite the availability of competent products like the LS (first car with THX) and Navigator (best SUV interior, ever).

It doesnt mean Infiniti made bad cars. It just means that for a while, Infiniti didn't do anything to stay a step ahead of the competition. For a model and brand to be aspirationally revered, it has to be great in its time. For example, the '53 Cadillac Eldorado isn't fantastic by modern standards, but in its time it was nearly the most impressive piece of modern machinery you could possibly buy.

Cadillac recovered from a 20 to 30 year slump and Infiniti seems to be doing the same. You can see already that resale on the G35 is phenomenal. Unfortunately, I doubt that this boost in resale will trickle down to earlier models. Just because every kid wants an Escalade, it doesn't mean a 1986 Seville is suddenly worth twice as much.

[PalmerWMD]

I think resale of the entire line will be lifted somewhat by todays popular models.

I would take my theory what constitutes good resale climate further:The cars have to be desired by those folks, that money in hand seek this class of car.

Since Infiniti despite excellent products wasnt in consumers consience for a long time BMW's and MB got those customers.

Low resale is a blessing for those of us that buy used and makes our cars a great value if we buy used..

As for the newer Infiniti's, everyone desirres them so resale will remain high in general and the M and G will lift the entire brand.

Fred..

[qship96]

popular,high volume selling new cars tend to be popular,in demand used cars........g35- hot new car in sales equals hot used sales. new q slow sales equals low demand,low dollar resale prices.old M never sold well new,resale values suffer.

[InfinitiFreak101]

Is part of it marketing? Infiniti started off wrong because their marketing famously didn't even have pictures of cars.

Also, perhaps early infinities are too good for the average driver? Especially the now 'infamous' grillless early Q45 which was won awards but sold poorly among the rubes who wanted a big grill and hood ornament. The J30 looks great but has less cargo space, etc. Is it infiniti's fault or the average american driver?

[maxnix]

I don't think you will find any long term owners nor after new vehicle purcharsers on this board complaining about low resale values. Those in the know, know.

Many luxury vehicles have poor resale values. Look at V12 7 series and A8.

[InfinitiFreak101]

The A8 and 7 series are very expensive to start with, and people who can afford them generally dont buy used. That explains their rapid depreciation, however a j30 cost under $40k new.

[Rex]

Is part of it marketing? Infiniti started off wrong because their marketing famously didn't even have pictures of cars.

Also, perhaps early infinities are too good for the average driver? Especially the now 'infamous' grillless early Q45 which was won awards but sold poorly among the rubes who wanted a big grill and hood ornament. The J30 looks great but has less cargo space, etc. Is it infiniti's fault or the average american driver?

It's all about the inittial marketing and how the name/marque didn't take off. It's been an uphill battle ever since .

[Sarcastik]

I love my J to death and I'm not an infiniti historian, but isn't Infiniti the newest luxary brand out? Remember back in the day when luxury cars didn't even need to advertise? You bought a "jag" cause of what it was not cause of an advertisement (porchea still don't advertise I think...), they all had a rich history and they did well on that alone. Then all of a sudden in the late 80s early 90s other car brands were making luxary spin of lines like lexus, acura, and infiniti. Infiniti was the last to jump into the frey if I'm not mistaken. And dudes right they didn't have the dependibility that toyota and lexus do and they both had rough starts as well. To be perfectly honest I believe this new line of infinitis in the first to get respect from the public (besides the Q of course which has always been staple) mostly because they came out with some nice designs and stopped rebadging **** left and right cause that's played out. I love my J to death, but I don't think I would pay 40k for it '95 when I could get another luxary car with more of history and name, but it doesn't take long for them to earn that history name and now I think they have it. If anything its a god send for many of us with older infinitis cause we get great cars at a foolishly low price for all you get.

[FarFetched]

Marketing is such a game in which you will loose as a consumer because avery stinking manufaturer is trying to tell you they are the best .I've come from background where you didn't have much choice and advertsements were a propaganda most of the time. So I've learned to make my own choices regarding BRAND NAMES. It is obvious there is "melting pot" going on with car mareks (one is buying another and so on), however, heritage of sertain brands remains very strong. The problem in US is that "general" public is like a herd of sheeps blindly follow the shepherd! When it comes to choosing a car to drive, I choose what I like not what is hot today or something that is advertised the most. I don't want to be an average "sheep". I like the fact that I don't see q45 (y33) every day on the road. When I see another Q I smile However, It remains MHOCheers!

[99q45t_vl]

I guess we come from the same background - and that's why I chose the 99Q :-)

[350zQ45a]

The new M has great resale value.

[maxnix]

The A8 and 7 series are very expensive to start with, and people who can afford them generally dont buy used. That explains their rapid depreciation, however a j30 cost under $40k new.

Huh?

So a Rolls is the depreciation king because it costs so much and is never resold?

I know that is not true.

Bet a lot of other people do also.

[InfinitiFreak101]

My original statement was correct and based on the laws of economics. Very expensive cars by major manufacturers, like Audi's flagship, depreciate relatively quicker because of their original high price, and the fact there are fewer buyers of 2nd hand cars at that price level.

In fact as a rule the depreciation of an automobile always begins fast and slows down over time, ie The difference 0 miles verus 10000 miles is much more than 100k versus 110k.

As far as Rolls Royce, you are making an unfair comparison, and even so you are wrong. Rolls Royces are handmade and are almost always of limited production because of that. The supply is so contricted they maintain their value relatively well. However even Rolls have depreciation accelerated when bought, quickly losing value until the price stabilizes. Like all cars, of course, if the model lasts long enough that it starts to become exceedingly rare its value will go up (So called "Classic Cars"). But until that happens, even Rolls' can be found in the local classifieds for a (relatively speaking) fraction of its original price. And Rolls are resold all the time. . .

As far as the "huh" and "winks" in your quote, your response really didn't present anything very clearly..

[redmanfx]

The resale value of my Q will be high if I ever sell it. That being based on my "economics" and love for the car, not to mention the TLC that is not replacable. My resale value will defy the N.A.D.A value because I "know"!



redI'VE SEEN 6 INFINITI'S IN 7 DAYS IN ST.LOUIS

[maxnix]

As far as the "huh" and "winks" in your quote, your response really didn't present anything very clearly..

Nor did yours.

Very muddy (and I use the term loosely, here) "thinking" indeed.

[AZhitman]

Not sure how any other marque qualifies as "more expensive".

My Q was $53,100 out the door brand new in late 1995 according to the contract in the glove box.

I'd argue that comparable offerings from MB, BMW, Lexus and Cadillac have fared no better or worse, and resale is similar on all.

[Rex]

FWIW, the cars with the worst resale values, are considered to have less than 30% price (some in the low 20's) retention in 3 model years. Even the Q didn't fall that fast.

[Falkdesigns]

Not sure how any other marque qualifies as "more expensive".

My Q was $53,100 out the door brand new in late 1995 according to the contract in the glove box.

I'd argue that comparable offerings from MB, BMW, Lexus and Cadillac have fared no better or worse, and resale is similar on all.

I totally agree with this. When I shopped for my Q, I could have gotten an LS or 5 series from the same era within a few thousand dollars difference. I paid 16.5 for my 98 Q and there was a 99 white 535 w/ AC Schnitzer wheels for only 2k more at the same Infiniti dealer, but I did't want the standard L.A. car, I wanted a Q.

[350zQ45a]

I have to disagree with that statement. Go look at a 740i, they are still worth money. True of the S class espically.

Cadillacs have no resale value like Infiniti.

Caddy, Jag, Infiniti, Lincoln all soft on the resale market.

Lexus, BMW, Merc tops.

The Y33 wasn't too worthless back in the day, but it's very soft now.

The F50 is laughable.

[driverdriver]

There is actually I really great article about this that was published in one of Fortune or Forbes late last year or early this year.

Resale value on used cars has a lot to do with consumer perception on brand cachet.

Infiniti isn't a marquee luxury brand in the minds of most consumers that shop for luxury vehicles. It according to one survey done reeks of nouveau riche and not old money, like a Jag, Mercedes, BMW, Land Rover or Lexus does. As a result it is less desirable.

Luxury car buyers including ones that buy used luxury vehicles want to convey to others that they are very successful. Jag, Mercedes, BMW, Land Rover and Lexus in consumers minds define success. Infiniti.......not really.

Another consumer perception survey sia d something to the avail, that brands like Infiniti, Volvo, Saab, Acura and Audi are considered "compromised luxury". A vehicle for those who can't afford a true luxury brand.

I remember reading a recent article in Marketing magazine. Infiniti ranked near the bottom of desirable luxury brands, where not only talking cars, but also brands such as Gucci, BCBG, Rolex, etc. I was suprised that Acura was of a higher desirability than Infiniti.

[InfinitiFreak101]

Nor did yours.

Very muddy (and I use the term loosely, here) "thinking" indeed.

Oh really, what was not clear about my last post?

I look forward to hearing your awe-inspiring oratory as you totally annihilate my arguments. . .

[Jehangir]

Its odd, all the reasons your reference article mentions Infiniti is not desirable are the exact reasons I bought this car. Frankly, when I began researching this car. I thought "wow I can drive a pure sport lux car" without anyone knowing. Infact, the lack of "pertentiousness" is what attracted me to this G50. Also, while Infiniti's like all other cars plummet in value imediately after leaving the showroom. Our cars tend to hold their values extremely well. I would go so far as to say. "if we stopped doing preventative maintaince to our cars today. and we sold our cars in two years we would have driven for free" Just my two cents

[Sarcastik]

Those dang haundyi's have to go down faster than any whip I've seen. You can get an '04 for like $4-5k, but when talking luxary cars infiniti's are pretty cheap. Obviously not the new ones, but lets say 96 on down. Compare a 96 accord to a 96 j30. The accord costs more (on avg) in comperable condition and all that and god forbid you put leather in and all the other goodies the J comes with the accord will always be more. It's just a part of the game.

[AZhitman]

After doing some research, I may have misspoken, Ryan's right.

APPROXIMATE 1995 retail values, comparing my Q to comparable (in someone else's opinion) cars:

1995 Q45t - $78001995 740i - $10,9001995 M5 - $10,2001995 LS - $11,6001995 E420 - $11,700

Still prefer mine, but the numbers are there.

[Sarcastik]

Yea, those numbers pretty much speak for themselves. Yours is a little higher because its a t too, but this is all a good thing because you get the same amount of car or more for a lot less money. Before I had 92 Mercedes 190e and I only had to pay like 2k to trade it for my 95 J30. Because benzes are worth more by nature. My J had 97k miles when I bought it and the benz had like 145k.