To crack down on rich citizens residing in public housing, it was once reported that the Housing Bureau can pay nearer consideration to automobiles parked in public housing parking so much and talk over with the Shipping Division to assemble knowledge on automobile costs. Whether it is discovered that the automobile belongs to a public housing resident, the price of the non-public automobile can be incorporated within the asset calculation. However can the price of a automobile truly be decided only in response to the data from the Shipping Division? What are the criteria that affect automobile costs? Lately, Kwiksure will percentage with you the 5 components that may immediately have an effect on a automobile’s worth.
Are Luxurious Automobiles All the time Dear?
Manufacturers like Mercedes-Benz and BMW have at all times been regarded as luxurious automobiles. A brand spanking new Mercedes-Benz or BMW can simply value masses of hundreds, even over one million. Then again, it is not exhausting to discover a used Mercedes-Benz or BMW on used automobile internet sites for simply tens of hundreds of bucks. Why is it {that a} new automobile valued at masses of hundreds of bucks can drop to only tens of hundreds at the second-hand marketplace? Listed below are 5 components that would possibly immediately have an effect on a automobile’s marketplace worth.
1. Car Logo
A automobile’s emblem is among the key components influencing its worth. As an example, German manufacturers are extra fashionable amongst Hong Kong automobile homeowners than Eastern manufacturers, so new automobile costs for Mercedes-Benz, BMW, and Audi additionally have a tendency to be upper. Then again, Li Yiu Pui, Honorary President of Hong Kong, China Car Affiliation, states, “You can not review a automobile based totally only on its emblem; you will have to additionally imagine components reminiscent of possession period and the choice of earlier homeowners.“
2. Production 12 months
More moderen automobiles are typically in a greater general situation, decreasing the will for main upkeep, which additionally makes the auto extra treasured. Then again, used automobiles in Hong Kong depreciate quite rapid. As an example, a 7-year-old BMW 2 Sequence tourer would possibly retain simplest 20% of its authentic worth because of top upkeep prices. Against this, a 7-seater Eastern automobile of the similar age would possibly retain extra of its worth as it’s extra fashionable amongst customers and has decrease upkeep prices, leading to much less depreciation. Subsequently, the impact of the 12 months of manufacturing on a automobile’s marketplace worth additionally depends upon its emblem and sort.
3. Mileage
Cars are consumables; the extra miles a automobile is pushed, the better the damage and tear, expanding the probabilities of wanting upkeep and reducing its worth. In most cases, in Hong Kong, an annual mileage of round 10,000 to fifteen,000 km is thought of as customary, and exceeding this vary can decrease a automobile’s worth. So the marketplace worth of a automobile isn’t one thing that may be judged only in response to its emblem or glance.
4. Choice of Earlier Homeowners
In Hong Kong, there’s a commonplace belief that the less earlier homeowners a automobile has, the upper its worth. Then again, the choice of earlier homeowners does now not totally mirror the situation of a automobile. The the most important issue is whether or not the former homeowners have maintained the automobile correctly. If the automobile lacks common upkeep, even a automobile with few earlier homeowners may just nonetheless expand important mechanical problems.
5. Car Sort
In recent times, electrical automobiles (EVs) have turn into mainstream within the automobile trade, with new automobile costs steadily shedding. Even supposing the federal government has lowered the cap at the first registration tax concession for EVs (beneath the “One-for-One” scheme) from HK$287,500 to HK$172,500 beginning April 2024, many of us proceed to be interested in EVs, which immediately leads to a continuing decline available in the market worth of used petrol automobiles.