To crack down on rich residents dwelling in public housing, it was reported that the Housing Bureau pays nearer consideration to automobiles parked in public housing parking heaps and seek the advice of with the Transport Division to assemble info on car costs. Whether it is discovered that the car belongs to a public housing resident, the worth of the personal automobile can be included within the asset calculation. However can the worth of a car actually be decided solely primarily based on the information from the Transport Division? What are the components that affect automobile costs? Immediately, Kwiksure will share with you the 5 components that may straight 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 automobiles. A model new Mercedes-Benz or BMW can simply price a whole lot of 1000’s, even over one million. Nonetheless, it isn’t laborious to discover a used Mercedes-Benz or BMW on used automobile web sites for simply tens of 1000’s of {dollars}. Why is it {that a} new automobile valued at a whole lot 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 straight have an effect on a car’s market worth.
1. Car Model
A car’s model is among the key components influencing its worth. For instance, German manufacturers are extra widespread amongst Hong Kong automobile house owners than Japanese manufacturers, so new automobile costs for Mercedes-Benz, BMW, and Audi additionally are typically increased. Nonetheless, Li Yiu Pui, Honorary President of Hong Kong, China Car Affiliation, states, “You can not consider a automobile primarily based solely on its model; you could additionally take into account components similar to possession length and the variety of earlier house owners.“
2. Manufacturing 12 months
Newer automobiles are usually in a greater general situation, decreasing the necessity for main repairs, which additionally makes the automobile extra helpful. Nonetheless, used automobiles in Hong Kong depreciate comparatively quick. For instance, a 7-year-old BMW 2 Sequence tourer might retain solely 20% of its unique worth attributable to excessive upkeep prices. Against this, a 7-seater Japanese car of the identical age would possibly 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. Subsequently, the impact of the 12 months of manufacturing on a car’s market worth additionally depends upon its model and sort.
3. Mileage
Autos are consumables; the extra miles a car is pushed, the larger the damage and tear, rising the probabilities of needing repairs and decreasing 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 is just not one thing that may be judged solely primarily based on its model or look.
4. Variety of Earlier House owners
In Hong Kong, there’s a frequent notion that the less earlier house owners a car has, the upper its worth. Nonetheless, the variety of earlier house owners doesn’t totally replicate the situation of a car. The essential issue is whether or not the earlier house owners have maintained the car correctly. If the car lacks common upkeep, even a automobile with few earlier house owners might nonetheless develop vital mechanical points.
5. Car Sort
In recent times, electrical automobiles (EVs) have turn out to be mainstream within the automobile trade, with new automobile costs constantly dropping. Though the federal government has lowered 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 interested in EVs, which straight leads to a steady decline out there worth of used petrol automobiles.
