To buy a pre-owned unit or brand new?

[goldfish]

I am in the dilemma now.... i am supposed to wait for my e60 525i baby to be deliver this week..... Unfortunately, i was told my dealer burst its quote for the demo car and BMW will not allow it to hv the demo car until end of next month. i have been waiting for this deal for three months now..... I am thinking of giving up the idea of taking the offer of pre-owned car and go straight to buying a new car.... (thanks to K3nny ) However, i will not get the discount the dealer give me if i opt for pre-owned car.... the discount is as high as RM23,000.......My question is if i takes the offer of waiting for the pre-owned car, which i will be the second owner...... when if i am going to sell this car in two years time, i am wondering whether the value of the car will be the same as if i am the first owner at the beginning?If there is a price different if the car is owned by second owner or third owner, other remains the same, ie. mileage and condition of the car, then i will not wait for the pre-owned car and go straight to buying a new car.Anyone please help.

 

[burn]

if i can already afford to buy a pre-owned at that price, what's the different if i get a new one... beside that, you already knew what you want! go...

 

[k3nny]

Brand new!
:yahoo:

 

[goldfish]

By the way, i hv this privilege arrangement from the dealer that the pre-owned, in fact, is brand new car.... on paper i m second owner.... when the dealer register the car in thier name as demo car... it will give to me to drive then two months later, it will transfer to my name.

Is it worth for the hassle to wait??? Does it make any different if i sell the car in the future, whether i am second owner or first owner..... be everything else the same....

 

[GMENG]

You'd loose 10% at least of the 2nd hand value if you are second owner...

 

[Lee36328]

Originally posted by goldfish@Mar 7 2006, 10:39 PM
I am in the dilemma now.... i am supposed to wait for my e60 525i baby to be deliver this week..... Unfortunately, i was told my dealer burst its quote for the demo car and BMW will not allow it to hv the demo car until end of next month. i have been waiting for this deal for three months now..... I am thinking of giving up the idea of taking the offer of pre-owned car and go straight to buying a new car.... (thanks to K3nny )

However, i will not get the discount the dealer give me if i opt for pre-owned car.... the discount is as high as RM23,000.......

My question is if i takes the offer of waiting for the pre-owned car, which i will be the second owner...... when if i am going to sell this car in two years time, i am wondering whether the value of the car will be the same as if i am the first owner at the beginning?

If there is a price different if the car is owned by second owner or third owner, other remains the same, ie. mileage and condition of the car, then i will not wait for the pre-owned car and go straight to buying a new car.

Anyone please help.

1. My question is if i takes the offer of waiting for the pre-owned car, which i will be the second owner...... when if i am going to sell this car in two years time, i am wondering whether the value of the car will be the same as if i am the first owner at the beginning?

Most definitely NOT.

A 525 is now at, what, RM422k?

At 10%, that's 42.2k.

At 15%, that's 63.3k.

Like what GMENG said, you'd lose at least 10% of the resale value. Actually, you lose more like 15%-20% in the first year.

On paper, you are buying the car as a second owner. A brand new car loses around 10%-15% (42.2k-63.3k) the moment it is driven out of the showroom. So, now you see why you were offered a RM23k 'privilege' discount.

Over time, when you resell your car, no one will cut you any slack for the fact that when you took the car, it was brand new with little or no mileage. They will see that on paper, you are the second owner and they will become the third. Compared to another car with only one owner, your car will be valued less.

 

[The Necessary]

From an economics point of view, I'd suggest you go pre-owned. Yes, the value of your car might be lower when it comes to resale time (to the "third" owner), but you're merely passing on the savings you obtained when you bought it "second hand". What's the big deal?

Going pre owned just means you fork out less cash in the beginning, which is a good thing, non?

 

[ALBundy]

More often that not, the value of a particular vehicle is determine by the year of which the vehicle was manufactured. For instance, when you sell your vehicle in 2-3 years time, would you sell it below the market price since the purchaser would be the third owner? As long as the vehicle is in good condition, accident free and the mileage is pretty reasonable, there should not be any reason why the selling price will be lower.

Rgds

 

[3er]

Also a "used car" will always be a "used car". It doesnt matter if you are the 2nd, 3rd, 5th, 10th owner - its still a "used car".

 

[Lee36328]

The selling price of a used car (and in the long run, anything else for that matter) is always based on a simple premise - supply and demand.

At the point of selling the car, if demand exceeds supply, you'll get a good price. Vice versa.

A car w one owner on the reg card will always be in higher demand compared to a car w 2 owners on the reg card, or 3 or 4 or more. And therefore, the price will differ.

The question is, whether the difference will be RM23k, or more, or less.

If the difference is exactly RM23k, then buy a new car, since the cost of ownership will be the same, pre-owned or not. The next owner gets all of the RM23k discount. If the difference is much less than RM23k, buy pre-owned, since you get to keep much of that discount and enjoy lower TCO. If the difference is more than RM23k, buy new, since the TCO is lower.

Over the long run, the difference will also reduce. So, if you intend to keep the car for a long time, you will keep most of the RM23k discount.

To make more economic sense, buying a car that's pre-owned AND abt 1-2 year old will make even more economic sense, since the depreciation in 1-2 years are the highest precentage wise.

 

[goldfish]

Guys,

Thanks for the advise..... appreciate it. i am in puzzle and cross-road now. How huh? There are value in both options.

 

[flash]

Originally posted by goldfish@Mar 8 2006, 12:04 PM
Guys,

Thanks for the advise..... appreciate it. i am in puzzle and cross-road now. How huh? There are value in both options.

If your brain gets cross-wired, go with your heart. :nyehehe:

 

[Lee36328]

Originally posted by goldfish@Mar 8 2006, 12:04 PM
Guys,

Thanks for the advise..... appreciate it. i am in puzzle and cross-road now. How huh? There are value in both options.

Goldfish,

if it's taking you this long to decide, then the RM23k discount is important to you - go for it.

If you take pride in having a 1-owner car, you being the first and only owner, go for a new car.

Curious - will the 'demo' car actually be used by the showroom to demo the car, as in test drive? What will the mileage be when you pick it up?

 

[E46Fanatic]

AB's pre-registered scheme, you get a new car although paper says its 2nd owner. Same kinda jalan as the parallel import with Kereta Import Terpakai with almost 0 kms on the ODO.

I agree with 3er. You wont loose much when you sell the car if you bought it with this scheme. Used car value goes by Age/Year, Condition and Mileage and to very little extent whether it had one more registered owner or not.

The discount they are giving you for this scheme is rather small. The E46's were seeing up to 40+k discount with pre-registration, and that makes a larger percentage of the value of the car (cheaper compared to E60).

 

[goldfish]

Acutally, i have other deciding factor..... interest rate.... in fact, i had secured an attractive HP rate of 2.35% pa three months ago.... it had lapsed last month. I managed to appeal and got extension for another month. if i do not have a car to register and i will have lose this rate and will be following prevailing rate now...ie ranging from 2.57% to 3%. Based on the lowest interest rate, i will have to pay extra RM5k for the total interest.

in economic point of view, if i take the pre-owned scheme, i will save RM23k..... but if i opt for new car, i will get RM5k discount on car (special treatment, maybe i am so "chiam" and save RM5k on interest........ Now, the different is only RM13k.

:beaten: Puzzle.....

 

[k3nny]

Up to u man... If you're willing to fork out the difference now, go ahead.

And if you wait it out and get a cheaper car, because of the extra name on the registration card, you're gonna have to pass on the savings to the next buyer anyways.

Even if they know it was never driven before it reached your hands, they will still press you..

Just my 2 cents..

 

[Spaceman]

goldfish,
r u sure your financier still gives you the low rate if you go for a pre-registered car?

i have asked the similar request 2 weeks ago, but was told not possible as they (financier) had to follow the 2nd hand car rate.
so when i did my calculation, i still save some money out of the 'discount' but suffer on the interest rate which in the end nothing much. worst still, i got to buy a new motorcycle to transfer the pre-registed plate to make way for my 2 digit no. which i tendered myself from JPJ...
so when so much of a hassle comes into the picture, i went for a brand new unit.

 

[goldfish]

Spaceman,

You got a point. In fact, i didn't ask whether the financier knows i get a pre-owned car.... My dealer deals with the financier (HLBB). Actually, i have gotten the letter of award from HLBB stating the rate.

Which bank did u approach? and what is the rate it offers you? What car r u buying?

 

[goldfish]

Spacemen,

I also have the "privilleges" from the dealer that i can choose my own no plate to be registered by the dealer's company name before transfer to me.

 

[Spaceman]

i'm got my CBU E90 325. The discount thing is my dad's 523i which i handled for him as well. Mine is EON Bank. i got mine at 2.38%.

My case is a little different from yours, coz i didnt buy an existing plate no from another owner, instead i tendered it myself with my dad's name so the dealer cant pre-register my dad's plate no (under dad's name) during the 1st time registration. that's why its kinda' havoc actually.