Horace and Jim discuss shopping online for used cars and how and why the value of cars disappears so quickly. The conversation drifts into information asymmetry, the declining interest in auto maintenance and the perpetual closed-loop auto information model. We hypothesize on the impact of the coming self-monitoring and awareness of the lives of vehicles. Finally we ask whether the dysfunction in the industry is the cause or the effect of the ancient integrated factory model and the sustaining auto eco-system incentives that impede transformation.
Finally, we note Gordon Murray’s iStream vision and the deal with Yamaha.
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Notes:
via ALG’s Brand Pricing Score,”depreciation ranking” and 14th annual residual value awards.
KBB Best Brands 2014.
US used car retailer Carmax annual reports and KMX stock information: bloomberg google.
The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism. Wikipedia. bing duckduckgo google
