To crack down on rich residents residing in public housing, it was reported that the Housing Bureau can pay nearer consideration to automobiles parked in public housing parking heaps and seek the advice of with the Transport Division to assemble info on automobile costs. Whether it is discovered that the automobile belongs to a public housing resident, the worth of the personal automotive will likely be included within the asset calculation. However can the worth of a automobile actually be decided solely based mostly on the information from the Transport Division? What are the components that affect automotive costs? As we speak, Kwiksure will share with you the 5 components that may immediately have an effect on a automobile’s worth.
Are Luxurious Automobiles At all times Costly?
Manufacturers like Mercedes-Benz and BMW have at all times been thought-about luxurious automobiles. A model new Mercedes-Benz or BMW can simply value a whole bunch of 1000’s, even over 1,000,000. Nonetheless, it is not onerous to discover a used Mercedes-Benz or BMW on used automotive web sites for simply tens of 1000’s of {dollars}. Why is it {that a} new automotive valued at a whole bunch of 1000’s of {dollars} can drop to only tens of 1000’s on the second-hand market? Listed below are 5 components which may immediately have an effect on a automobile’s market worth.
1. Car Model
A automobile’s model is likely one of the key components influencing its worth. For instance, German manufacturers are extra widespread amongst Hong Kong automotive house owners than Japanese manufacturers, so new automotive costs for Mercedes-Benz, BMW, and Audi additionally are usually greater. Nonetheless, Li Yiu Pui, Honorary President of Hong Kong, China Car Affiliation, states, “You can not consider a automotive based mostly solely on its model; you will need to additionally take into account components comparable to possession period and the variety of earlier house owners.“
2. Manufacturing Yr
Newer automobiles are typically in a greater total situation, lowering the necessity for main repairs, which additionally makes the automotive extra precious. Nonetheless, used vehicles in Hong Kong depreciate comparatively quick. For instance, a 7-year-old BMW 2 Collection tourer could retain solely 20% of its authentic worth as a consequence of excessive upkeep prices. In contrast, a 7-seater Japanese automobile of the identical age may retain extra of its worth as a result of it’s extra widespread amongst customers and has decrease upkeep prices, leading to much less depreciation. Due to this fact, the impact of the yr of manufacturing on a automobile’s market worth additionally relies on its model and kind.
3. Mileage
Autos are consumables; the extra miles a automobile is pushed, the larger the wear and tear and tear, growing the possibilities of needing repairs and reducing its worth. Usually, in Hong Kong, an annual mileage of round 10,000 to fifteen,000 km is taken into account regular, and exceeding this vary can decrease a automobile’s worth. So the market worth of a automobile is just not one thing that may be judged solely based mostly on its model or look.
4. Variety of Earlier Homeowners
In Hong Kong, there’s a frequent notion that the less earlier house owners a automobile has, the upper its worth. Nonetheless, the variety of earlier house owners doesn’t totally replicate the situation of a automobile. The essential issue is whether or not the earlier house owners have maintained the automobile correctly. If the automobile lacks common upkeep, even a automotive with few earlier house owners might nonetheless develop important mechanical points.
5. Car Kind
In recent times, electrical automobiles (EVs) have turn out to be mainstream within the automotive business, with new automotive costs constantly dropping. Though the federal government has lowered the cap on the first registration tax concession for EVs (below the “One-for-One” scheme) from HK$287,500 to HK$172,500 beginning April 2024, many individuals proceed to be interested in EVs, which immediately ends in a steady decline available in the market worth of used petrol automobiles.