To crack down on rich residents residing in public housing, it was reported that the Housing Bureau pays nearer consideration to autos parked in public housing parking tons and seek the advice of with the Transport Division to collect info on automobile costs. Whether it is discovered that the automobile 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 automobile actually be decided solely primarily based on the information from the Transport Division? What are the elements that affect automobile costs? At the moment, Kwiksure will share with you the 5 elements 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 all the time been thought of luxurious autos. A model new Mercedes-Benz or BMW can simply value a whole lot of hundreds, even over one million. Nevertheless, it isn’t onerous to discover a used Mercedes-Benz or BMW on used automobile web sites for simply tens of hundreds of {dollars}. Why is it {that a} new automobile valued at a whole lot of hundreds of {dollars} can drop to simply tens of hundreds on the second-hand market? Listed below are 5 elements which may immediately have an effect on a automobile’s market worth.
1. Automobile Model
A automobile’s model is without doubt one of the key elements influencing its worth. For instance, German manufacturers are extra in style amongst Hong Kong automobile homeowners than Japanese manufacturers, so new automobile costs for Mercedes-Benz, BMW, and Audi additionally are typically larger. Nevertheless, Li Yiu Pui, Honorary President of Hong Kong, China Vehicle Affiliation, states, “You can not consider a automobile primarily based solely on its model; you need to additionally take into account elements resembling possession period and the variety of earlier homeowners.“
2. Manufacturing 12 months
Newer autos are typically in a greater general situation, decreasing the necessity for main repairs, which additionally makes the automobile extra beneficial. Nevertheless, used automobiles in Hong Kong depreciate comparatively quick. For instance, a 7-year-old BMW 2 Collection tourer could retain solely 20% of its unique worth as a result of excessive upkeep prices. Against this, a 7-seater Japanese automobile of the identical age would possibly retain extra of its worth as a result of it’s extra in style amongst customers and has decrease upkeep prices, leading to much less depreciation. Subsequently, the impact of the yr of manufacturing on a automobile’s market worth additionally will depend on its model and kind.
3. Mileage
Autos are consumables; the extra miles a automobile is pushed, the better the wear and tear and tear, rising 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 will not be 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 widespread notion that the less earlier homeowners a automobile has, the upper its worth. Nevertheless, the variety of earlier homeowners doesn’t totally replicate the situation of a automobile. The essential issue is whether or not the earlier homeowners have maintained the automobile correctly. If the automobile lacks common upkeep, even a automobile with few earlier homeowners may nonetheless develop vital mechanical points.
5. Automobile Kind
In recent times, electrical autos (EVs) have change into mainstream within the automobile business, with new automobile costs constantly dropping. Though the federal government has diminished 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 immediately ends in a steady decline available in the market worth of used petrol autos.