Mazda is one of the world’s largest automobile producers, with a budding presence in almost every continent. However, Mazda has its work cut out for itself as it struggles to compete with larger brands.
They do not sell enough cars to even stand beside the giants of the industry. That’s why they have to think outside the box and adopt intelligent ways to stand out. One way that has worked for them is to sell cheap vehicles.
Why are Mazdas so Cheap?
Mazda has a knack for producing cheap cars. The brand has to survive in a highly competitive market where the likes of Toyota, Honda, and Lexus dominate. These larger companies can afford to sell expensive models as they have a healthier outreach. On the other hand, Mazda must sell its vehicles at a lower price to attract more customers.
The trend follows when we talk about resale value. You will find that Mazdas do not sell as quickly and easily as other cars. There are so few of them in the market that people don’t trust buying them, and they fear parts unavailability. Hence, used Mazdas are incredibly cheap.
For the most part, they aren’t even bad vehicles in any sense. Mazda makes reliable cars packed with the most modern amenities. You won’t feel them lacking in any department. However, their low sales volume affects everything from fresh sales to resales.
How Cheap is Mazda Compared to Other Brands?
New Mazda vehicles are cheaper, but they are sometimes more expensive than their rivals. Take the Mazda CX-5 as an example. This crossover SUV starts at around €22,000. Its competition, the Toyota RAV4, starts at €24,000. The Mazda is cheaper in this particular example.
In another example, we can see that the Subaru Forester matches the price of the Mazda CX-5 at €22,000 for a base model. Here, the CX-5 is on par with the Subaru Forester. The same can be seen with other rivals in the market.
Why is Mazda so Cheap?
Reason #1: Limited Outreach
Mazda is not as huge as its Japanese siblings Toyota and Honda. Therefore, they have to work hard to attract people to their cars.
The company does not market its vehicles as heavily as other companies. In fact, they do not even bother advertising their cars to large audiences because Mazda wants its vehicles to be exclusive. They want people to feel the luxury in their vehicles and buy them based on that.
However, that poses a dilemma. If they limit their outreach, only a handful of customers will be attracted to their products. So, they choose to reduce the price tag.
The most effective way to reel in more customers is by making cheap cars that can compete against the best in the business. Mazda has been very successful in that regard, and the strategy seems to be working well for them.
Reason #2: No Resale Value
There are so few Mazdas in the used cars market that people are wary of buying them. A big reason for that is that customers do not prefer Mazda in the first place. They fear for the worst. But Mazda vehicles are highly reliable and packed with modern features.
The resale value of most cars is determined by the availability of parts, and the acceptability of the vehicle by the market as a whole. Mazda doesn’t seem to have both bases covered. Hence, their resale value isn’t that great.
Reason #3: Brand Image
Mazda tries to market itself as a luxury brand. But at the same time, they fail to rack up a sufficient amount of sales. A few decades ago, they were rated well above the likes of Kia and Hyundai, but even those brands have surpassed Mazda. It seems there is something wrong, which is affecting their brand image.
A lot of blame could be directed towards Mazda’s poor decisions in the previous years. Not too long ago, they were hoping to reintroduce the brand’s vigor by releasing the RX-8. However, Mazda chose to go back to the Wankel Rotary engine, which wasn’t very popular in the first place. The RX-8 therefore suffered, and it could not revive the Mazda brand name as the company had hoped.
Their cheap pricing is a consequence of such decisions. The company is using this tactic to revive the people’s faith in their brand.
Also read: Where are Mazdas Made? (The Full List)
Are Mazdas Reliable Despite Their Low Prices?
There is no doubt that Mazdas are some of the most reliable vehicles in the world. The company ranks pretty high in the top 10 most reliable car brands list that’s published every year. They recently took first place, dethroning Lexus from the year 2019 and Toyota from the year before.
The thing is that there are so few Mazdas on the road that there aren’t enough people to speak in their favor. In comparison, almost everyone has owned, driven, or heard about a Toyota in their lifetime. We always hear good things about the Toyota brand from previous and present owners. That’s why there is an air of trust around the company. The same cannot be said about Mazda.
So, even though Mazdas might be more reliable than a Toyota (according to the 2020 Consumer Report reliability study), they are not given that credit.
Do Mazdas Lose Value Quicker Than Other Brands? Do You Pay Longer for Mazda In the Long-Term?
Mazdas indeed lose value over time, but you will mostly feel it when you are looking to sell one. It’s common knowledge that Mazda vehicles have pathetic resale value.
That’s regardless of their unmatched performance over the years and impressive reliability ratings. However, their poor used-market performance is questionable, since Mazda vehicles hardly ever break down.
Take a look at some of the company’s latest models, and you will see why they are one of the most reliable. The CX-5 and CX-9 SUVs are great examples of modern Mazda vehicles outperforming their reputation.
If you maintain them by the book, there won’t ever be any serious problems. You can even find some owners who have been driving their Mazda for over 12-15 years without major issues.
Moreover, modern Mazda vehicles are fuel-efficient as well. So, at the end of the day, you are saving up a lot of money. When all of these factors combine, you can see that you don’t have to pay longer for a Mazda in the long term. You will instead save money by not having to pay for unnecessary repairs.
Are Mazdas Cheap When it Comes to Insurance and Servicing?
Insurance companies base their premiums on a vehicle’s reliability rating. And since Mazdas are very reliable, they do not have high premium rates.
Earlier, there wasn’t enough data due to a lack of sample size. But as more and more Mazdas are entering the market, insurance companies are collecting new data to determine more accurate premiums.
In terms of service, Mazdas are easy to work on, but it is not that cheap. They hold up pretty well, and when they need repairs, several mechanics say that the work is pretty easy.
However, spare parts are hard to come by, and you don’t always have the option to buy from third-party suppliers. As a result, you have to buy directly from the dealership, and they sell parts at an exorbitant price. According to an estimate, you could end up spending €400+ each year on repair costs. That’s slightly above average in terms of price.
Which Mazda Cars Have the Best Quality to Price Ratio?
Mazda cars have exceptional quality. But in the list of all their well-built cars, some deserve higher praise.
These are some of the cars that have excellent quality to price ratio.
Is It Worth to Buy a Mazda?
You should definitely buy a Mazda if your goal is to use that vehicle till the end of its lifetime. That’s because Mazda vehicles do not have a good resale value. You will not be able to sell your car at a competitive price if you intend to sell it.
But other than that factor, Mazda vehicles are fun to drive. They have exceptional handling, good fuel economy, and reliable engines. Such factors are enough to convince anyone to buy a Mazda over everything else.