What influences resale value?

[johnoosthuizen]

Depending on the value of the car you can lose up to 30k on what you get when selling your car at a car dealer who knows the trade.. [emoji854]

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[BushWacker]

One needs to follow the vehicle's life-cycle:
As you leave shop floor you lose 15%.
Then next devaluation milestone is normally @ the warranty expiry.
Then when the extended warranty expires (actually a con) is, surprisingly, pertinent.
Then other stuff as in comments previous...

A new (replacement) model may be a devaluer of the old model ... etc
Very pertinent is the (cultivated?) hype ...
one has to assess earned quality
vs propagated bullshit ...
eg Isuzu KB280 v Ford Ranger plugging ..
.... ad infinitum ...
but relevant impacters are many..
fleet car ? ... ownerdriver/s or not ?
Business vs private, old lady commuter
vs young aspirant offroader...
etc. etc...

[Mad Manny]

Chas, actually it's worse than that.

If you buy Euro Trash, you are forced to tick a lengthy options list, in fact, you cannot go on to the Land Rover or Audi websites & get a vehicle price.
You havre to first choose the options, packs & luxury items like steering & road wheels.

Example:
So, now you've bought your Euro Crap.
Base price was R912000 **
Options (because you were very cautious) only came to R84000
The 'On Road' rip off came to R6400
On roadrip-off costs are R600 for the R200's fuel in the tank, licensing & registration, the coffee the salesman (basically a Teller) offered you, wear & tear on the pen they let you useto buy the heap o crap, & other unjustified rubbish.
VAT on all that is R150 360
The CO2 levy (basically VAT) is R25 500

That means 'Drive Away' is R1 178 260

After a year you want to sell (because you are an idiot), a buyer will give you a percentage of the ** base price of R912000)
Say you 'only' lose 10%.
That means you'll get (R912000 - R91200) = R820 800.
You then brag that Euro Trash is not bad, you got 90% of your money back.
But R820 800 is R357 460 less than you paid.
so you got 70% of your money back after a year.

This example gets WORSE if the vehicle was financed.

[KurtG]

The CPA has probably caused more damage to SA second hand car resale values than anything else. Dealers need to protect themselves from dodgy sellers by having a large enough buffer to deal with any major mechanical issues that could potentially arise after taking a trade-in.

Example: I went to look at a Pajero Sport at Halfway Toyota Fourways for a friend. The Paj had just been traded in for a new Fortuner (clever move) and the young salesman and I went for a test drive. Before I drove off I tested the Super Select II system and it was faulty. I put the lever back in 2H and drove off. As we turned the first corner there was a loud clunk as the system let go after clearly being locked in place by dodgy solenoids or vacuum thingy majiggies.

The salesman had no clue, being a Toyota Salesman there was no way he would have known how to test the incredible modern engineering of the superior Mitsubishi product.

The Paj was 11 years old with only 86,000km so he probably thought he’s getting a great deal and on paper it was a good deal, but alas he ended up with a bit of a lemon. But he probably had a R40k buffer for just in case, anyway, because of the CPA.

[LesseW]

Chas, actually it's worse than that.

If you buy Euro Trash, you are forced to tick a lengthy options list, in fact, you cannot go on to the Land Rover or Audi websites & get a vehicle price.
You havre to first choose the options, packs & luxury items like steering & road wheels.

Example:
So, now you've bought your Euro Crap.
Base price was R912000 **
Options (because you were very cautious) only came to R84000
The 'On Road' rip off came to R6400
On roadrip-off costs are R600 for the R200's fuel in the tank, licensing & registration, the coffee the salesman (basically a Teller) offered you, wear & tear on the pen they let you useto buy the heap o crap, & other unjustified rubbish.
VAT on all that is R150 360
The CO2 levy (basically VAT) is R25 500

That means 'Drive Away' is R1 178 260

After a year you want to sell (because you are an idiot), a buyer will give you a percentage of the ** base price of R912000)
Say you 'only' lose 10%.
That means you'll get (R912000 - R91200) = R820 800.
You then brag that Euro Trash is not bad, you got 90% of your money back.
But R820 800 is R357 460 less than you paid.
so you got 70% of your money back after a year.

This example gets WORSE if the vehicle was financed.

Chas, what Manny is saying in simple Zimbo English, is that to get bang for your buck later, buy a Toyota

[AndreasR]

If it flies, floats, drives or has boobs, there is no resale value.

[BushWacker]

... in SA , local second hand values are generally way higher than they should be because one cant really readily import 2nd hand cars into the country ...
... but that doesnt seem to stop foreigners, US etc importing huge numbers of
Defenders & Series Land Rovers out of SA ...

... think about it ...
( ... maybe Manny & Wessel will explain this phenomenon! )

[KurtG]

This is what kills resale value:


https://youtu.be/9K_0w2XTstQ


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[BushWacker]

Two ways to promote your product, at company or national level etc:

Plug your own product or..
Trash the opposition.

[Mad Manny]

In SA , local second hand values are generally way higher than they should be because one cant really readily import 2nd hand cars into the country ...
... but that doesn't seem to stop foreigners, US etc importing huge numbers of
Defenders & Series Land Rovers out of SA ...

... think about it ...
( ... maybe Manny & Wessel will explain this phenomenon! )

Are you saying that, if you were allowed to (legally) import used vehicles into SA (en masse) the resale prices of used vehicles in SA would drop?
If so - that's absolute rubbish.

Firstly, the exchange rate prevents it.
Secondly, back up of 'grey' imports has always been a problem.
Thirdly, SA makes up 0.23% of the worlds motor market - if you could import used vehicles into SA - would you bother?

[BushWacker]

" Are you saying that, if you were allowed to (legally) import used vehicles into SA (en masse) the resale prices of used vehicles in SA would drop? "

Definitely they would .

... tell us why there are restrictions on
dong so ...