Cars for Bob

[kevm14]

Here's the cheapest V2 on Autotrader:
http://www.autotrader.com/cars-for-sale ... 6361&Log=0

Dipping under $30k. These seem to be following an organic depreciation curve. The wagons, however, are not.

[Bob]

hmm... It would be nice if something with under 50k miles was under $30k. It seems like these had dipped lower at one point in time. Perhaps it was winter (seasonal variation), or maybe the resale of these is being further propped up by low gas prices.

[kevm14]

What does a really good, but expensive, V3 do to V2 resale? Anything at all?

Almost seems like it would cancel out. So the effect of the newer one further legitimizing the marque is negated by the realization of potential future owners of the old ones that they may hear "oh, I see you got the old, inferior one." The better the new one is, the more inferior the old one is, by definition.

Or.....draws positive attention to Cadillac and the V line, but the person (dreamer) realizes there is no way, and ends up with a used older V/generation which still has good qualities in an absolute sense, just not nearly as good as the new hotness. So that would drive resale up, if that were the predominant effect.

[Bob]

I agree with the no effect assessment. If the V3 had started at a price closer to the V2, I would think downward pressure would be possible. I think there is also some downward pressure on prices when the car is no longer the latest generation. The V2 still looks sweet so maybe this won't be that significant.

[kevm14]

It seems like getting better but charging more is exactly what is good for a brand.