Say you are looking for a small, economical commuter car. For $12,000 to $13,000 you can get a Dodge Caliber, a Chevy Cobalt or a Ford Focus. You can get something from one of the second tier Japanese companies for about the same money. If you want a Toyota Yaris or Honda Fit, more or less the gold standard for this type of vehicle, you'll have to pay a thousand or even two thousand more.
The Japanese car will get a little better gas mileage, since the engines are usually a little smaller. You are likely to get a few more bells and whistles on the American car. The Japanese cars will generally offer very good long term reliability and low maintenance costs. The Caliber and Cobalt will start to fall apart immediately, while the Focus is likely to be a little better.
If you hold the car for 3-5 years, you will make the extra money you spent on the more expensive Japanese cars back on the resale price. If you hold the car for 10 years, the advantage of having bought the Japanese car will be not so much in the resale price but do to the fact that it is still likely to be in good running condition while the American model will be sitting in your driveway, under a tarp and you will have had to purchase another car to get around in.
Tell me again why we should bail out the American automakers.
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