[Nova 8]

I get what you mean, but what's the average upgrade period in Australia, 5 years is about what I'd guess, average loan term? With a 70k vehicle selling for 20k only 4 years later (holden caprice) I don't think the secondhand market props up the manufacturer to the extent implied. Sure it helps people lower the hit to the hip pocket of those buying new but it isnt enough to stop them buying altogether. Once you've had a $70k vehicle lose around $55k value over 5 years i don't see selling it as trying to recoup costs but rather just the done thing cause who uses a car for 5 years then just throws it out?

There are examples where you are spot on and people can afford to upgrade due to the secondhand market. Case in point is myself, I've had 3 new cars since the beginning of 2012 and without secondhand buyers I wouldn't have upgraded yet (VE SSV then VE SS wagon and now VF SSV). But if I just kept my first SS-V and didnt sell it to the guy who bought it he would have bought a new SS (so he told me). Guy who bought the wagon was going to get a SV6 but used the secondhand market to get a V8 with options instead.

People buying new but lower in the range is good for the business and for future upgrades in the range.