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Consumers Prove Quick to Dump Low-Quality Luxury Cars

Friday, 24 March 2017 17:04

A new study by automotive research firm iSeeCars.com found that popular luxury models from BMW and Mercedes-Benz have a much higher resell rate than the average 1.5 percent of new cars that are sold within the first year of ownership.

The website analyzed more than 24 million individual new car sales and determined how many of those were resold as used within the first 365 days.

Eleven cars have two to five times the average resale rate (1.5 percent).

Six of the 11 cars with the highest resell percentages are BMWs or Mercedes.

The other five models were all ranked average (3 stars) or worse in the J.D. Power 2016 Initial Quality Study.

Two additional factors for luxury brands' high rates may include first-time owners' disappointment with entry-level trims, and quality or perceived quality issues resulting in early trade-ins.

All five non-luxury cars on the list were ranked average (3 stars) or worse in the J.D. Power 2016 U.S. Initial Quality Study, which surveys consumers after 90 days of ownership. Quality issues were also notably the case for the Mercedes-Benz C-Class and E-Class, while quality ratings for the BMWs on the list were mixed, depending on the model and model year.

 

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