In the world of luxury cars, Infiniti is known for being one of the hardest depreciating brands in the used car market. Only Jaguar shares this distinction with Infiniti. But why is this the case? There are several reasons for the steep decline in value for Infiniti cars, ranging from their lack of reputation and stiff competition to reliability issues and a dwindling dealer network. In this article, we will explore these reasons in detail, shedding light on why used Infiniti cars are so cheap compared to their competitors.
Lack of Reputation and Stiff Competition
One of the primary reasons why Infiniti cars lose their value quickly is due to the brand’s lack of reputation. Unlike Mercedes-Benz, Audi, and Tesla, which have been around for a long time and have established themselves as reliable and luxurious brands, Infiniti is seen as little more than a glorified Nissan. While Infiniti offers competitive pricing when new, they struggle to maintain their value in the used car market due to the brand’s inability to carve out its space against competitors with stronger reputations. Brands like Lexus, known for their ultra-luxury and reliability, make it difficult for Infiniti to compete and retain their value on the used car market.
Reliability Issues and Maintenance Costs
Another major factor contributing to the depreciation of Infiniti cars is their reliability issues. While they may not rank particularly high in terms of unreliability, Infiniti still faces moderate reliability concerns compared to other luxury brands. The brand has had reported problems with their continuously variable transmission (CVT), which can lead to costly repairs and reduced reliability. Issues with cracked radiators, fuel system leaks, and general fit and finish have also been reported. While the annual servicing cost for Infiniti cars is not exorbitant, it adds to the overall lack of desirability in the used car market.
Lack of Innovation and Performance
Infiniti cars also suffer in terms of performance and innovation when compared to their competitors. While they may have attractive designs and features, they lack the performance offerings that brands like BMW, Mercedes-Benz, and Audi provide. Infiniti lacks high-performance versions of their models, such as BMW’s M cars or Mercedes’ AMG lineup. This lack of performance pedigree and competition leads to decreased desirability among consumers, resulting in lower resale values for used Infiniti cars.
Dwindling Dealer Network
Serviceability is a crucial factor when considering the purchase of a used car. Unfortunately, Infiniti’s dealer network has been shrinking, making it more challenging for owners to find reliable servicing options. With fewer dealers available, owners may be forced to either perform maintenance and repairs themselves or face the prospect of higher costs and inconvenience. The diminishing dealer network adds another layer of difficulty to selling used Infiniti cars and further contributes to their lower value.
Limited Brand Recognition and Marketing
Finally, a significant factor contributing to the affordability of used Infiniti cars is the brand’s limited recognition and marketing efforts. While Infiniti produces great products, they haven’t effectively marketed themselves and have struggled to establish a strong brand identity. Many consumers may not even be aware of what Infiniti has to offer, and their name doesn’t immediately come to mind when thinking of luxury brands. This lack of brand recognition and marketing further decreases the demand for used Infiniti cars and leads to lower prices in the used car market.
In conclusion, there are several factors that contribute to the affordability of used Infiniti cars. These include the brand’s lack of reputation and stiff competition, reliability issues and moderate servicing costs, the lack of innovation and performance when compared to competitors, a dwindling dealer network, and limited brand recognition and marketing efforts. While Infiniti cars may offer attractive designs and features, their lack of staying power, reputation, and performance make them less desirable in the used car market, resulting in lower prices.
