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 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 non-public automotive can be included within the asset calculation. However can the worth of a automobile actually be decided solely primarily based on the data from the Transport Division? What are the elements that affect automotive 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 at all times been thought of luxurious automobiles. A model new Mercedes-Benz or BMW can simply value tons of of hundreds, 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 hundreds of {dollars}. Why is it {that a} new automotive valued at tons of of hundreds of {dollars} can drop to simply tens of hundreds on the second-hand market? Listed below are 5 elements that may immediately have an effect on a automobile’s market worth.
1. Car Model
A automobile’s model is among the key elements influencing its worth. For instance, German manufacturers are extra in style amongst Hong Kong automotive homeowners than Japanese manufacturers, so new automotive costs for Mercedes-Benz, BMW, and Audi additionally are typically greater. Nonetheless, Li Yiu Pui, Honorary President of Hong Kong, China Automobile Association, states, “You can’t consider a automotive primarily based solely on its model; you need to additionally take into account elements corresponding to possession length and the variety of earlier homeowners.“
2. Manufacturing Yr
Newer automobiles are typically in a greater total situation, decreasing the necessity for main repairs, which additionally makes the automotive extra worthwhile. Nonetheless, used cars in Hong Kong depreciate comparatively quick. For instance, a 7-year-old BMW 2 Sequence tourer might retain solely 20% of its authentic worth as a consequence of excessive upkeep prices. Against this, a 7-seater Japanese automobile of the identical age may 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 12 months of manufacturing on a automobile’s market worth additionally is dependent upon its model and sort.
3. Mileage
Automobiles are consumables; the extra miles a automobile is pushed, the higher 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 will not be one thing that may be judged solely primarily based on its model or look.
4. Variety of Earlier Homeowners
In Hong Kong, there’s a frequent notion that the less earlier homeowners a automobile has, the upper its worth. Nonetheless, 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 automotive with few earlier homeowners may nonetheless develop vital mechanical points.
5. Car Kind
Lately, electrical automobiles (EVs) have change into mainstream within the automotive trade, with new automotive costs constantly 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 interested in EVs, which immediately ends in a steady decline out there worth of used petrol automobiles.
