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NINETY EIGHT REGENCY

Ford's killing of Mercury likely to whack resale values

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Ford's killing of Mercury likely to whack resale values

08:42 AM

After all the automotive brands that have disappeared in the past couple years, it should come as no surprise that Ford's decisioin to kill its Mercury brand could whack owners. The pain will come in worsening resale values. Mercury owners could be in for a rude surprise when time comes to trade in their cars, like the guy or gal who ends with that Milan Hybrid in the photo above.

Already, Mercurys have about a 1% disadvantage against Fords when it comes to trading in a two-year-old model. Makes sense. The brand slid to the point that it made up only a tiny fraction of Ford's overall sales. But Kelley Blue Book, which tracks depreciation, says the resale value gap is almost sure to widen.

Says KBB:

Historical precedence suggests that consumers typically shy away from purchasing vehicles from a brand that is no longer in existence. We anticipate that given the choice between a similarly equipped Ford or Mercury in the future, consumers will more often than not opt for a Ford vehicle that is still in production versus a similar out-of-production Mercury.

link:

http://content.usatoday.com/communities/driveon/post/2010/06/fords-killing-of-mercury-likely-to-whack-resale-values/1

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Chicagoland    2

They have sold so few of them in the past few years, not too many will notice. And dealers can say "Used Milan, same as the Fusion". Used Grand Marquis get snapped up by taxi companies, so those will have no problem selling.

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