Does A Lincoln MKZ Retain Its Resale Value Well?
No, it does not retain its resale value well. This is a common issue with luxury vehicles, as evidenced by the large number of used Lincoln MKZ models that end up as turn-ins for dealerships on lease-purchase agreements (often abbreviated as FoMoCo leases).
A Real-world Example: My Sister's Experience
My sister made a significant purchase in May 2019. She acquired a 2017 Lincoln MKZ with just 12,000 miles on the odometer from a Lincoln dealership. The original price was significantly higher, but she managed to secure a deal for half of that sticker price, paying a mere $23,000. This included a generous 100,000-mile warranty. The car is highly regarded, providing a smooth driving experience and featuring a robust turbocharged 4-cylinder engine that offers both impressive fuel efficiency and competitive performance.
Despite its solid build and performance, the Lincoln brand often doesn't escape the stigma of being seen as a "geezer" car, which can be a disadvantage. However, it means that such a vehicle becomes an excellent value for buyers looking for a reliable used car. When my sister shopped for a comparable used Cadillac, she was quoted a price that was $12,000 higher. In response to a friend's comment that a Lincoln was “an old lady car,” she quipped: “I am an old lady, and I’m going to take my grandkids on a cruise with the money I saved.”
Is Any Luxury Car Better?
No, each luxury car model typically suffers from poor resale value. For instance, I can recall a real estate broker who, in the 1980s, thought a Mercedes-Benz would retain its value. However, the drop in value was significant, nearly enough to purchase another car. This stark decline in value was just two years into ownership.
Mercedes-Benz is often criticized for overcharging for just a bit of residual value, which contributes to their notoriously poor resale performance. This cyclical pattern is true for most luxury brands due to their high initial prices and subsequent depreciation rates.
Relativity and Acceptance
When assessing the resale value of vehicles, it's crucial to understand that luxury cars face more significant depreciation compared to mainstream models. Leasing companies often base their projections on ALG (Automotive Lease Guide) lists, which provide detailed insights into how vehicles retain their value over time. These lists help buyers and sellers make informed decisions.
Ultimately, luxury vehicles serve more as tools and conveniences rather than long-term investments. If you appreciate the value they bring in terms of quality and performance, and you can afford them, that's a personal choice worth considering. Just accept that the car is a depreciating asset, and focus on its utility and enjoyment.