Why Are Mazdas So Cheap?
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If you’ve been car shopping recently you might have noticed that Mazdas seem to be a lot cheaper than they look. Unfortunately for the car company, cheaper prices can be a big red flag for a lot of consumers, which means that plenty of buyers skip Mazdas and move on to a manufacturer they know better without doing their research.
But, if you’re reading this, we’re guessing you’re either thinking about getting a Mazda or already own one and are wondering why the prices are so low.
Well, good news! You’re in the right place. We’re going to talk about why Mazdas are so cheap, and also whether Mazdas are a good value for the price and worth the investment.
Let’s take a closer look at this Japanese brand and see if there’s a reason they’re so affordable, and if they’re a good investment for the price.
Mazdas Are Cheap Because They Don’t Have Brand Recognition
Maybe we’re giving away the answer with this heading, but one of the biggest single reasons that Mazdas are cheap is their lack of brand recognition and market power.
While most people will be able to say that Mazda is a car company if you asked them, they probably wouldn’t be able to tell you what kind of vehicles Mazda produces, or really much about the company. A lot of people wouldn’t even know that Mazda is a Japanese car company, which tells you a lot considering the popularity of other Japanese manufacturers in the US market.
However, those Japanese competitors might also be a part of the problem for Mazda, and why they have an uphill battle when it comes to brand recognition.
Take Toyota, probably the most popular and best known of the Japanese vehicle manufacturers. Because Toyota has a lot of name recognition and consumers know what to expect from a Toyota vehicle, they tend to have a lot of market share. Their low prices for the durability of their vehicles don’t hurt.
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But Mazda, according to MotorAsk.com, only gets about 1.9% of the US market, compared with Toyota’s range from 2%-13% depending on the year.
Market share is a huge factor in determining the value of a vehicle and what kind of retail price you can expect for the brand.
Mazda pricing their vehicles lower is an intentional choice to help capture more market share, and also to help develop brand recognition. If they succeed in getting more brand recognition and a larger market for their vehicles, then we might see prices go up compared with the value of the vehicle, but Mazda probably won’t raise prices relative to the cost of production until then.
Really, one of the reasons Mazdas are cheap is a savvy business decision to help the company grow and become more popular.
Lower Resale Value
Another reason for the low price tag actually has to do with how well Mazdas retain value on average.
This is another problem of now having great brand recognition. If more people knew about Mazdas then they would probably be easier to sell on the used market. However, since a lot of people aren’t very familiar with the brand they tend to be more hesitant to buy a used Mazda because they don’t know what to expect from the vehicle.
Those reasons alone don’t actually mean that Mazdas aren’t a good used vehicle, and in fact, Mazda vehicles tend to hold up well as a functional used vehicle. However, since people don’t know what to expect, Mazdas lose value faster than more well-known brands, and particularly faster than brands with a reputation for durability.
The lower resale value also pushes purchasing prices lower because consumers want to get a good value for their money if they decide to sell their vehicles down the road. Especially in the US market, consumers are less willing to pay for a vehicle that isn’t going to give them a good return for their money in resale or trade-in prices later.
Do Mazdas Have A Lot Of Known Problems?
Considering the low price for the features and functionality of most Mazdas, a lot of consumers expect to hear that Mazdas have a lot of problems and aren’t a very reliable vehicle.
The good news is that really isn’t true. Mazdas are generally reliable, don’t have a ton of functional issues, and bring a lot of features to the table in an attempt to get more interested consumers.
In fact, Consumer Reports both rates Mazdas highly as a brand and rated several Mazda models in their list of the best 3-year-old vehicles.
Both of those ratings mean that Mazdas, in general, perform well over time and don’t tend to have any major issues either on release or as they begin to age. That’s good news for Mazda consumers, and also makes those cheap prices even more appealing.
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Do Mazdas Have High Maintenance Costs?
One of the things that can drive the initial cost of a vehicle down is if the manufacturer knows or predicts that that vehicle will have higher than average maintenance costs.
However, in this case, that just isn’t a factor. Mazdas don’t tend to cost more to maintain than other vehicles, and their high reliability means that you will probably need less actual maintenance work than many other vehicle brands.
Of course, Mazda isn’t a miracle brand. Their vehicles do still need regular maintenance, and the prices for individual services can be a little higher than more well-known brands, but that’s mostly because it can take a little longer for mechanics to work on less-familiar vehicles and less-familiar brands.
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Are Mazdas A Good Investment?
At the end of the day, the most important thing in car buying is whether the vehicle you’re looking at is a good investment over time.
When it comes to Mazdas, we’d have to say that the cheap prices are definitely worth it, but with some caveats.
If you’re looking for a long-term vehicle, absolutely Mazda is a good option. If they have a model you like, it’s probably going to be a pretty good investment for you.
However, if you’re looking for a vehicle you can own for a few years and then either sell it or trade it in, then Mazda might not be the right brand for you. Instead, consider looking for a vehicle with better value retention – you’ll probably get a better price when it’s time to sell.
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