Old is New

For instance, in some cases residual values of late-model used cars have plunged to an all-time low of 50 percent of the MSRP in less than three years. Yet concurrently, certain models from the late '80s and early '90s have actually experienced a leveling-off or even an increase in value. This contrarian effect has occurred despite an outpouring of incentives (to buy new vehicles), such as quicker new-model turnarounds and the accompanying marketing glitz or good-old-fashioned financial perks, like rebates. What is causing this trend reversal?

One of the main reasons for retro's success today is the fact that many people look back nostalgically to a less complicated time, and find comfort in embracing what they perceive as having captured the essence of that.

When it comes to the products they choose, they want something that won't be rendered obsolete or unserviceable quickly. It should have a clean, timeless style, and be of the simplest construction possible for its suited purpose, so as to be considered durable and useful in the long-term. The latter aspect is the basis for our discussion here, rather than the styling issue. That's a matter of individual taste, anyway; but the durability factor is quantifiable, and therefore of great interest.

Two-Sided?

It's certainly arguable that many new car models are suspect in this area for a number of reasons. It's no secret that not only has there been a drop in materials quality, but also an across-the-board increase in vehicle complexity. Some of these technologies have been a bit like a two-edged sword.

For example, systems involving supplemental restraint (airbag), anti-lock braking, traction control, automatic climate control, collision avoidance, navigation, multi-speed automatic transmission, and vehicle security, while offering added convenience and safety, can be quite costly to maintain and repair. One technology that all new vehicles have, regardless of make or model, is the OBD II, and acronym for a drivetrain and emissions management system that, when spelled out, means On Board Diagnostics—Phase Two. Implemented on all passenger cars since 1995, and light trucks since '96, that are sold in the U.S.A., this system proved to be a quantum leap in capability and complexity compared to the previous OBD I and earlier management systems.

Such a complex system is needed in order to further reduce vehicle emissions, especially during warm-up. Also, to ease repair expense issues, some self-diagnostic features have been incorporated that are common in function for all OBD II vehicles (a commonality welcomed by repair technicians). That's the good news.

The downside is that, in order to accomplish all of these capabilities, more sub-systems, components (or their improvements), and monitoring software have been added, such as the fuel evaporative leak-detection system and its monitor. Failure sensitivity for other system monitoring, such as for catalytic converters and oxygen sensors, has been increased as well.

OBD II Obstacles

In real world terms, for example, this means that a Check Engine MIL (Malfunction Indicator Lamp) might illuminate if the fuel filler cap is not completely tightened, or the catalytic converters are operating much below 95 percent efficiency. In both cases, a trip to a qualified repair shop will be needed for diagnosis and, in the case of the former, resetting the check monitors. The latter would likely require replacement of the catalytic converter(s), a prospect considerably more expensive than on pre-OBD II vehicles.

If the state or area you live in has an I/M (emission Inspection/Maintenance or smog) test, an illuminated Check Engine MIL will result in a failure of the test. The difference with OBD II vehicles is that just resetting the self-test monitors to turn off the lamp will not allow your vehicle to pass the test, even if the measured tailpipe emissions are within prescribed limits.

The reason is that part of the I/M test on OBD II vehicles involves the test technician connecting his test machine's data link with the serial data port on the vehicle. If the self-test monitors have just been reset (generally within the past 50 miles), they will show a "not-ready" status, which will prevent the technician from certifying the vehicle. Rules are rules. So the vehicle will have to be driven long enough under a variety of driving conditions in order to "arm" the self-test monitors. If the problem that originally caused the MIL to illuminate is still present, the lamp will once again illuminate.

OBD I Pros

In contrast, pre-OBD II vehicles are not tested in such a stringent fashion. If the MIL is functional, but not illuminated during the test, and the vehicle passes the visual, functional, and tailpipe portions of the test, it qualifies for certification—even if there is a pending problem. When you consider that many catalytic converter replacements can cost well over $1,000, you can start to see the wisdom in owning a pre-OBD II vehicle.

Because of the OBD II issue, as well as the other considerations we discussed, purchasing an older vehicle may make sense for many people. This is not to say, however, that just any older vehicle will automatically be a better choice. Obviously, certain models, while perhaps evoking nostalgic feelings in us, no longer qualify as practical for daily use, or are not economically justifiable at this point in time.

It isn't difficult, though, to spot the vehicles that are. Generally, if the manufacturer and model have a good reputation, and there is an abundance of this model to choose from, that's a good sign. Survival of the fittest definitely applies here. Of course, it won't guarantee that all existing examples of the vehicle are worthy. As with any used vehicle purchase, employ due diligence by weeding out the bad ones by a process of thorough inspection. Purchasing an older used vehicle might not be "nobler in the sight of all men," but it can pay big dividends in the long run.