naishou

For the demand to be elastic the price has to fall Again, that's why older cars are cheaper - because the intrinsic demand for them is lower.

You're probably right that prices at the bottom end of the market would fall less, because a small fall in price might stimulate demand enough to take up all the supply. The point was though that the introduction of a (better) new model will make prices of second hand cars fall across the board. Probably not by the same absolute amount at the bottom end as at the top end, but possibly by a similar percentage. It's even possible that when it comes to a specialised car like the S2000, the increased supply might just overwhelm demand (as seems to be already happening) and prices at the bottom end just might collapse. Without knowing the exact nature of the potential demand, all that is certain is that prices will fall. What we don't know is by how much. On the other hand if the new model is considered a step backwards or appeals to a significantly different market, the demand for second hand cars just might go up.

Freznal

A lot of you seem really worried by re-sale value. I was always told that whatever car you buy, you will always loose money on it. With something like the S2000, the value should be percieved in hours of enjoyment as it is a very specialised car with a limited re-sale market. I think Honda would be shooting themselves in the foot with a new model so soon. With regards to their previous lineups regarding Prelude and Integra models, am I wrong in thinking that there was a 10 year period between new models? And would that not also apply to the current S2000 which was only ever meant to be an aniversary special edition?

AusS2000

That's the gist.

naishou

It doesn't seem to be a totally new design. Just a capacity increase and detail changes. Kind of like the Boxster when it went from 2.5L to 2.7L. If you look at the competition some of them have various engine choices anyway.

Freznal

thanks all those that posted