A car's actual value
By Mohan Thomas •
How do one decide the actual valuation of a car. Qatar is the only country where you ask exhorbitant rate for a second hand car. Does the buyer who ask unrealistic rate get it?
How do one decide the actual valuation of a car. Qatar is the only country where you ask exhorbitant rate for a second hand car. Does the buyer who ask unrealistic rate get it?
in qatar, no one acknowledges something called depreciation.
i once wanted to sell my 2 yr old car and accordingly quoted my price.... this person approached me and told me that a car depreciates by 20% every year.... i just told him to come after another 3 yrs and he can take the car for free.....
we both had a hearty laugh..
Here is a "car depreciation calculator".
http://www.money-zine.com/Calculators/Auto-Loan-Calculators/Car-Depreciation-Calculator/
depreciate 10% of first year, then 5% of successive years, however, prices may vary for a good condition cars.
For some reason, car owners in Qatar refuse to acknowledge the existance of depreciation. If it was just a few car owners then no, they would not get the crazy prices they ask for. Unfortunately, it is all car owners and so this artificially inflates the entire market and so buyers have no choice but to pay.
If you're lucky you may find someone going back to their home country and desperate to sell, but as the population is still growing at a huge rate the demand for cars will remain high.
For a car with good market value (like Toyota, Mitsubishi etc), reduce 15% for first year and 10% for each subsequent year. For a car with not so good market value, deduct 20% for first year and 10% for each subsequent year. This if for cars which are around 3-4 years old.