Value of used cares
Hi QLers, I have been looking at the classified for cars on sale for 2 months now. What is noticeable is the inconsistent pricing on vehicles of the same make and model. Then you have the so called agents to add their commissions to the car, who make a reasonable offer an expensive one. We also have people who do not believe that the value of their family car could possibly depreciate. I feel only an unbiased evaluator from some insurance company could let us know how much you can expect a vehicle to depreciate based on the model and the Kms it has done. If there is any such person with the knowledge please share with us. The sellers opinion will always be biased towards getting a better price. Comments please.
Try avoid buying a car from agents or from shops such as the ones located on Salwa Road. You wll end up paying extra for nothing. Even genuine owners of vehicles usually advertise their prices for their cars on the higher side. There always exists a margin for negotiation. Many factors come into play when assessing the value of a second-hand car. The model, the kilometer it has done, overall condition from inside and outside, any unusual noise while driving, are to name a few. Added to this is one's knowledge of what is the current value of the vehicle in the market. As britexpat has very rightly said "there is no exact science."
There is no exact science. It is supply and demand and also subjectivity.
Decide on the vehicle you want.
Check QL Classsifieds and other sites to give you an idea of the prices being asked for that make and model.
Then decide what you are willing to pay
You do not need an insurance guy to tell you that. It is on average 10 per cent of the purchase price. Starting from that reference point, it can depreciate further if the mileage is high or the car had an accident. For example, you buy a car for 100k, the second year its value will be 90k in the first month and will depreciate towards 80k towards the end of the second year. If you had accidents and/or a high mileage (for example above 30k km in the first year) then you should expect a further depreciation of 5 to 10k depending on your negotiation skills and your situation (leaving urgently or just planning to change your car). This is more or less how insurance people do the math and it applies to every car model and brand except collection or sport cars.