Are Foreign Cars Better than Domestics?

For a long time now, car buyers have held on to the notion that foreign cars are better than domestics when it comes to quality, reliability, and resale value.

While that may have been true in the past, it's really no longer the case today. The quality gap between foreign and domestic brands has narrowed to the point where there isn't much of a difference anymore.

In J.D. Power's 2023 Dependability Study, Chevrolet, Buick, Cadillac and Dodge were all rated in the top 10, showing just how far domestic manufacturers have come. Although quality and reliability are about even, there is still the nagging perception that domestics are inferior - and that does affect resale value a bit.

Foreign cars do tend to hold their value better than domestics, but that gap has mostly closed over the years. The thing to understand about the automotive industry is that it's a small microcosm. Top engineers, designers, and executives regularly defect to competing brands. Some transfer from foreign manufacturers to domestics and vice-versa.

Furthermore, many "foreign" brands actually manufacture their vehicles in the United States. In fact, according to Cars.com, the Toyota Camry and Honda Accord are ranked as the top American-made vehicles (outside of Tesla) when you factor in domestic car parts used and the assembly of the vehicle.

With today's global manufacturing industry, the lines are blurred when it comes to figuring out which cars are domestic or foreign. What you really need to do is have an open mind when it comes to choosing a car. Don't assume that foreign cars are always better than domestics or vice-versa.

Many people miss an opportunity to own a great car simply because of past prejudices. You should definitely test drive vehicles made both domestically and foreign and make up your mind after experiencing the quality first-hand.