To crack down on rich residents dwelling in public housing, it was reported that the Housing Bureau pays nearer consideration to autos parked in public housing parking heaps and seek the advice of with the Transport Division to assemble data on car costs. Whether it is discovered that the car belongs to a public housing resident, the worth of the personal automotive can be included within the asset calculation. However can the worth of a car actually be decided solely based mostly on the information from the Transport Division? What are the components that affect automotive costs? At present, Kwiksure will share with you the 5 components that may instantly have an effect on a car’s worth.
Are Luxurious Vehicles At all times Costly?
Manufacturers like Mercedes-Benz and BMW have all the time been thought-about luxurious autos. A model new Mercedes-Benz or BMW can simply price a whole lot of 1000’s, even over one million. Nonetheless, it is not laborious 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 lot of 1000’s of {dollars} can drop to only tens of 1000’s on the second-hand market? Listed here are 5 components that may instantly have an effect on a car’s market worth.
1. Automobile Model
A car’s model is without doubt one of the key components influencing its worth. For instance, German manufacturers are extra fashionable amongst Hong Kong automotive homeowners than Japanese manufacturers, so new automotive costs for Mercedes-Benz, BMW, and Audi additionally are usually larger. Nonetheless, Li Yiu Pui, Honorary President of Hong Kong, China Car Affiliation, states, “You can’t consider a automotive based mostly solely on its model; you should additionally contemplate components equivalent to possession period and the variety of earlier homeowners.“
2. Manufacturing Yr
Newer autos are usually in a greater general situation, lowering the necessity for main repairs, which additionally makes the automotive extra priceless. Nonetheless, used vehicles in Hong Kong depreciate comparatively quick. For instance, a 7-year-old BMW 2 Sequence tourer could retain solely 20% of its unique worth because of excessive upkeep prices. Against this, a 7-seater Japanese car of the identical age may retain extra of its worth as a result of it’s extra fashionable amongst customers and has decrease upkeep prices, leading to much less depreciation. Due to this fact, the impact of the 12 months of manufacturing on a car’s market worth additionally will depend on its model and sort.
3. Mileage
Automobiles are consumables; the extra miles a car is pushed, the higher the wear and tear and tear, growing the probabilities 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 car’s worth. So the market worth of a car will not be one thing that may be judged solely based mostly on its model or look.
4. Variety of Earlier House owners
In Hong Kong, there’s a widespread notion that the less earlier homeowners a car has, the upper its worth. Nonetheless, the variety of earlier homeowners doesn’t totally replicate the situation of a car. The essential issue is whether or not the earlier homeowners have maintained the car correctly. If the car lacks common upkeep, even a automotive with few earlier homeowners might nonetheless develop important mechanical points.
5. Automobile Sort
In recent times, electrical autos (EVs) have turn into mainstream within the automotive trade, with new automotive costs repeatedly dropping. Though the federal government has decreased the cap on the first registration tax concession for EVs (underneath the “One-for-One” scheme) from HK$287,500 to HK$172,500 beginning April 2024, many individuals proceed to be drawn to EVs, which instantly leads to a steady decline available in the market worth of used petrol autos.
