There are not just two markets; new & used.
The markets are numerous, but to over simplify they might be;
1) New
2) Used 1- 3yrs
3) Used 4 - 7yrs
4) Used 8+yrs
Quite clearly 2) represents the residuals present for 1). And someone in 1) considers that residuals are important. Perhaps a buying y/n.
However, someone buying in 3) is likely to care much less about the residuals into 4). Perhaps he cares more that it has leather seats, a service history, mirror windows, space for his fluffy dice.
Consequently one can easily understand why the value of a car in 2) will impact the value of a car in 1) and thus should be attributed significant importance.
Equally clearly it may be that the value of a car in 4) is of much less importance to a manufacturer primarily selling into 1).
Thus, I woudl expect such a manufacturer to develop a service strategy which would fully support his 1) and 2) markets, but perhaps pay much less attention, and therefore investment, into market 4).
If you cannot get my point from there, then either I cannot write or you cannot read. And I am paid to write.
Last edited by: No FM2R on Sun 7 Jun 15 at 19:06
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