Depreciation

[BlackCat]

And all of the above does not include factors of 'value of funds' or the value of your ringgit at point of purchase versus at point of disposal...

Aiyaa... Don't think too much on all of these. I like, I can afford, I buy. If cannot afford, duduk diam diam. End of story.

BTW, I won't be reincarnated into this material world. So I go where my heart desires after consulting with my pockets. .

Anyways, 2012 is just about ten months away...

 

[shaifulo]

i look at it this way, dont worry so much on the depreciation....it's like, being kedekut is one thing....but even kedekut to yourself, that's just sad

buy what u can afford & do enjoy the car as much as possible, u'll get bored after 2-3 yrs anyway and will be itchy for an upgrade

so work harder la...what to do

 

[John_Smith]

Precisely, to be stingy to yourself and buy a "washing machine" or "fridge" on 4 wheels is just so unforgiving..

I was drving a "fridge" before I got on the the realm of UDM, and trust me, I shall stay forever in this realm.

 

[Ade]

Salary minus all daily expenses minus all savings funds = BMW fund.

 

[fabianyee]

why go and compare to other countries??? U don't live there and won't buy a car there so don't apply to us poor malaysians here... And used car prices are determined more by market forces (perceived demand, interest rate, roadtax, govt policies bla bla bla)..

If you have enuf disposable income to own the car and you like it, by all means, go and pamper yourself. If you can't get over the depreciation, then don't buy loh.. Very simple only mah..

Tell the accountant in you to take a baskseat... Cos you can't influence the market forces.. So you either accept it or don't..

 

[Hammer278]

Unfortunately questioning depreciation is like questioning the existence of life/death.

Like the new leather smell + can afford = Buy New

Don't care for new leather smell + like the car = Buy 2nd/3rd Hand

My simple equation when purchasing a car. Personally, my 2nd hand E34 still has a strong leather smell which makes me smile when I open the door.

 

[Herbert]

Way back in Dec 1990, I purchased from AB a new E34 520i (manual gear) for RM 137K. Six months later I sold the car for RM142K and made a profit of RM5K. Also in 1985 bought a new M/Benz 200 (123 black head engine) from C & C for RM 72K and later in 1990 sold it for RM 78K. Those were the days.......

 

[AAM]

ha...ha....agreed with Hammer, my 1994 3rd hand E32 still smell leather everytime doors were opened !.......

 

[anxious]

My comments on depreciation have nothing to do with my postings on getting a E90.

I was just sharing my thoughts and comparison based on what I have read ie What Car and Motor Trader and I dediced to share it in this forum.
Read my initial post.

It really interesting to note that it is this difference in depreciation that really spurs the recon market.


Thanks for ur comments anyway.

 

[Traveler]

If you know risk factor, hire purchase loans are more risky because the car, which is the collateral for the loan are a "movable" asset. So when it comes to bad debt recovery, locating the car is a big problem! So naturally, interest rate shall be higher than housing loan.. no choice! or you can refinance your house and pay cash for your car, in a way converting the car loan into the house loan, at reducing balance method, if you think you can benefit by avoiding the 'straight line' hire purchase loan.. :wink:

That's right. If you can refinance your home and pay cash for the car, you should get a lower effective interest rate, as a home loan is a lower risk proposition for the bank (immovable asset vs a movable asset).

I don't worry about depreciation, as I figure I will be owning my car for a long time (my E36 lasted 11 years, and only sold it to get the E90 coz itchy to get a >200hp car). If I can afford to buy a new car every 2-3 years, then I figure I would be rich enough to not worry about depreciation at all. Since I can't afford that, I've decided to fully enjoy my car for a decade or so. Any new car owned for a decade or so would have almost fully depreciated already, so it won't matter which make or model I buy, the end result would be the same (more or less).

 

[ALBundy]

My comments on depreciation have nothing to do with my postings on getting a E90.

I was just sharing my thoughts and comparison based on what I have read ie What Car and Motor Trader and I dediced to share it in this forum.
Read my initial post.

It really interesting to note that it is this difference in depreciation that really spurs the recon market.


Thanks for ur comments anyway.

What really spurs the reconditioned car market is the price differential between Malaysia and other markets, namely Japan and the UK as most of the reconditioned cars are imported from these countries, and not depreciation.

If car prices in Malaysia are on par with these countries, either with higher car prices in Japan and the UK OR lower car prices in Malaysia, then there is no market for reconditioned cars.

And that is why BMW Msia has come out with pre-reg options and Premium Selection Section to counter the grey importers. If one were to take into account of the warranty issues + Free Service, and other equipment incompatibility (like radio, navigation and so forth) then a pre-reg unit which is newer with lesser mileage isn't too bad an option.

As for depreciation rates, it is mainly due to market forces and government policies, namely supply & demand and financing options, roadtax and etc..

Let's just say if financial institutions were to provide ample financing to vehicles aged up to 15 years, the used car prices of the E36 and E39 wouldn't be at where it is right now, as more buyers would be able to purchase these cars (more demand). Likewise cars with smaller engine capacity (320, 325) have lower depreciation rates compared to 328, 330 and etc, due to the roadtax structure.

Too bad BMW doesnt make an E90 with a 1.8 liter engine ala 116i, otherwise I would think that would be perfect for you

Cheers

 

[buzzlie]

Precisely, to be stingy to yourself and buy a "washing machine" or "fridge" on 4 wheels is just so unforgiving..

I was drving a "fridge" before I got on the the realm of UDM, and trust me, I shall stay forever in this realm.

Bro,

Care to elaborate which car u are referring to? Heheheeee ....

 

[John_Smith]

From Honda Accord 2.0 to E36 328...manual. Hahaha!

 

[dzuljazz2001]

U felt the depreciation because you are in Malaysia where prices of cars are so expensive, after the 300% taxes and doesn't commensurate to general population income, dollar to dollar.

My 26 month old E90 320i already depreciated RM70k.. tell me about it man! My down payment was RM20k and installment paid was about RM50k.... We would still owe the bank money if we sell the car now, principal sum entirely wiped out, interest portion still outstanding!! ....

Depreciation = RM70,000 / (26 mth x 30 day) = RM70,000 / 780 days = RM90/day !! and I don't even earn that much a day !!

:listen: now we know why we have people stealing cars and then selling it to other people cheap cheap !!!

 

[buzzlie]

From Honda Accord 2.0 to E36 328...manual. Hahaha!

So which one is the washing machine and which one is the fridge?

 

[John_Smith]

current E36 is definitely neither of those.

 

[X6M]

I don't get it, why is CKD models in Malaysia still much more expensive than fully imported same model in other countries? :stupid:

I tot the main reason for CKD is to make it more affordable for locals? Damn....

 

[John_Smith]

Well, they would need to earn money, maintain showrooms and service centres.

 

[ALBundy]

I don't get it, why is CKD models in Malaysia still much more expensive than fully imported same model in other countries? :stupid:

I tot the main reason for CKD is to make it more affordable for locals? Damn....

Because these cars are slapped with exorbitant excise duties.

Cheers

 

[X6M]

Because these cars are slapped with exorbitant excise duties.

Cheers

pardon my ignorance, but what is actually excise duties in layman terms? :39:
if the cars are already CKD assembled, why is it still taxed to the max?