Izzt me or do u find car depreciate like stone nowadays?

[Zanter]

I think v few cars hold their value well nowdays unlike the the past where Toyota, Honda etc can still be sold at good values. Nowadays seems like 3 year old cars are sold close to scrap values esp the outdated models & looking that sgcarmart, it seems harder & harder to sell 2nd hand cars cos Singaporeans all want 1st hand spanking new cars.

 

Dont believe? Just give a call to a dealer to find out what is ur car's trade in value. Certain exotic cars like coupes, cabriolets, sports cars appear to hold their values better but I suspect not easy to find a buyer of those cars. Whats your take on this trend?

[Mzrmazda3]

Nowadays Jap, Thai & Korea rides are much cheaper as compared to previous days

 

Basically, there is nothing as re-sale value

 

All rides are taken at scrap + a few Ks except maybe for conti makes

Edited May 15, 2008 by Mzrmazda3

[Ahyoo2002]

As far as I know, Jap cars still can sell a few $k above paper value.

Edited May 15, 2008 by Ahyoo2002

[Zanter]

Well maybe 1 year old cars still fetch good prices. Few people can afford to part their cars @ 1year old cos financing penalties, so there is some rarity to almost new cars?

 

If the car has 2 owners, many people will already shun it, unless you sell real cheap.

 

I believe even you advertise the sale of the car yourself, you will get damm low offers. Anybody can share their experience?

[Iziz]

One reason is becoz those new cars r veri cheap (compared to 3yrs back). Hence, the high paper value of those cars make it more feasible to scrap rather den re-sell, used cars will make a comeback when COE prices r high enuff again.

 

They might hold better in terms of percentage (again will depend on make/model) but do look at the absolute value they lost as well. Also, like u pointed out, they have to have the holding power if they wan the price tat they wan as potential buyers for those cars r quite limited.

[Hiphiphoray]

Ya...fully agree on the poor resale value.

 

My 2 yr 6 mths OPC Lancer bot at 40k, was sold for only 20k. Thats the best price i manage to get from a PI. The other AD(Honda, Hyundai, C&C) only offer 17-18k nia.

 

Got my current 2yr 7mths Sonata @ 44k. I understand this Sonata was selling @ 80k for a brand new back then. Assumming the dealer buy from the owner @ much lower price than 44k. Say 38k.

 

So thats a 40+k lost over a period of just 2+years !!!!!!!!!

 

Without any doubt at all, my next car will be a 2nd hand one. Its better to take that 40+k extra money and do whatever ICE upgrade, tyres/rims, respray, grooming, spare parts replacement etc etc. transform it into a "new car". You will still have penty of $$$$$ leftover. U loan lesser and pay less interest too.

Edited May 15, 2008 by Hiphiphoray

[Zanter]

No body value for common jap cars?

[Iziz]

Ur case veri extreme leh, 1-2k mostly for korean makes. Jap makes where got so low. Also, u gotta see the age of the car, if 5 or more, confirm gone case.

[Ahyoo2002]

Sorry, my mistake, I mean Jap car should have a few $k above paper value.

[Ahyoo2002]

Sorry, I mean Jap make can get at least a few $k above paper

[Acemundo]

is due to our crappy car registration system lor...

 

COE fluctuates like stock market

ARF they tweak from year to year

PARF drops to 97.5% omv from the 230%omv you paid for the car at registration

 

all these type of problems are actually caused by zheng hoo.....

[Ahyoo2002]

Take this one as example:

 

http://www.sgcarmart.com/main/info-2AoXFN9u-1154.html

 

Paper value about $26k, but want to sell at $41.8k, so confirm the body value is not low leh.

[Zanter]

Bro thats advertised value from dealer not selling price. These guys chop carrot when buying but markup like > 10k+ when selling .

 

Anyway old altis will drop like stone with new model being launched.

[Ahyoo2002]

Even minus another $5k from the advertised price, so it means they try to sell it at $37k. So the nett body price is still $11k (from dealer point of view).

 

So how much you expected the seller get?

 

Anyway, new Altis already launch.

[Watwheels]

No point finding any buyers. Sg is one of the biggest 2nd hand car exporter. Like what u had said on S'poreans opting for new car instead of used, 2nd car dealer would have died off and turn to dust by now.

 

These used cars are exported mostly to South Africa. Dealers make their money mostly on exporting them, of course they offer u the lowest price possible to profit more lah.

[Iziz]

Agreed. If they kept the system constant, u wun get this problem of 3yr old car = scrap.

 

Anyways, it depends on model to model, not a across the board benchmark.

[Acemundo]

yep....the resale price not constant across the board.

 

but having done detailed analysis of first and second hand car market, i am confident enough to say all these huge differences caused by our stupid car registration system.

 

some blames the car dealers, actually it is the system. when new cars are cheap, most rational person would go to first hand car. but why cars when bot first hand so expensive becomes almost worthless in resale market is due to the difference in parf vs arf at registration. first hand cars dealers pay about 2.3times of omv to bring it in. but parf only left 0.96times the omv left. of course anyone who resells the car is gonna be hit badly....

 

imagine if we are like other countries, where cars are being sold at close to 1.1 to 1.2times of omv, then the demand for resale car is really on the car body and not the stupid piece of coe+parf paper. and with 1.1 to 1.2times of omv as the standard car selling px, even a 30% depreciation (0.3*1.2omv=0.36omv) of the car within 1st day of registration is still small change.

 

whoever say our zheng hoo doing good job in keeping control of the traffic and car population?