Depreciation of 335 convertible

[The Guardian]

Hi,

Anyone knows what is the standard depreciation for this model?

 

[Slater]

Re: Depreciation of 335 convertible

u r looking at about 20k a yr.

New BMW 3 Series Convertible Latest Car Price & Prices Singapore - sgCarMart

 

[The Guardian]

Re: Depreciation of 335 convertible

Thanks Slater.
Wat abt 1 yr old used car? Is white a safe color or the usual black?

 

[TripleM]

Re: Depreciation of 335 convertible

1yr depre from new is typically 15% or so....cut throat.

 

[niteblu]

Re: Depreciation of 335 convertible

1yr depre from new is typically 15% or so....cut throat.

Or more. Depending on make.
Usually expect upwards of 20%.

The moment you drive out the showroom floor.
You've lost 10% already.

Of course if you've happened to buy when the COE was rock bottom.
Then you can possibly sell it for much less loss.
When the overall market prices have risen substantially.

 

[Slater]

Re: Depreciation of 335 convertible

Thanks Slater.
Wat abt 1 yr old used car? Is white a safe color or the usual black?

both r the at the extreme ends of the spectrum. both will be subjected to critisism by dealers when they wanna buy over ur car, coz both get dirty easily.

safe colour is grey IMO.

 

[SpyVeilside]

Re: Depreciation of 335 convertible

Agree, bluewater, silver & grey. Come buy from me.. lol!
Get the facelifted 335i

both r the at the extreme ends of the spectrum. both will be subjected to critisism by dealers when they wanna buy over ur car, coz both get dirty easily.

safe colour is grey IMO.

 

[Slater]

Re: Depreciation of 335 convertible

Agree, bluewater, silver & grey. Come buy from me.. lol!
Get the facelifted 335i

u sell 2nd hand too?

 

[joshdway]

Re: Depreciation of 335 convertible

IMO,

if u are planning on selling the car to direct buyers in the future, both white and black are very safe. after all, white is the new black?

as for depre, one yr old, has to be 20% off
sometimes dont refer too much to sgcarmart
all the prices u see there are asking prices, not transacted prices
eventually how much are those cars transacted at, its not stated right?

i do of some dealers personally and they all tell me something, the margins for used cars this days aren't as good as before. sometimes for a car like a e90, margin's just 3k after doing up bodywork, replacing damaged/neglected parts, paying sales comm to the sales person, servicing the car etc.

why sometimes we see dealers asking for relatively 'high' prices is because as an industry, no single dealer wanna advertise at a lower price than the market price. make that the market asking price. otherwise, its a price war that doesnt benefit any of them. however among all of them, they know how much one another are selling each model so the eventual selling price is much lower.

the other phenomenon i noticed is that within sgcarmart? alot of owners who are selling their own cars are asking for a higher price than what the dealers are.

their logic are mostly the same and flawed imo. they think 'if a dealer can sell it for $X, i should be able to sell mine for $X + 2 or 3k because pple prefer dealing with the owner direct.

true and not true. i have been at both ends before, selling and buying directly.

as a buyer, i dont really care if i am buying from the owner or dealer as long as i am confident that the car is in a good shape, under warranty etc. what makes u think a end owner will always be 100% truthful? i have also bought cars from dealerships who tell me things i didnt notice, like the history of the car and what parts has been replaced before and why?

best thing is to bring a person who is familiar or confident of inspecting a car along. and a sale will transact as long as the price is right and fair.

why the first yr depre is usually abt 20%?
assuming a car which cost 100k brand new
a sale will eventually be made ard 80k because the car will most likely be advertised at 84/85k to be bargained down (its a local culture, most will bargain and not buy at the list price).
factor in a transfer fee of 2k, maybe road tax of 1k (new car like BMW, mercs, Lexus comes with free 12 mths rd tax, audi, porsche 6mths), higher interest rate for used cars (might not be that different this days due to a low ir across board).
the car has to be sold at 80k!
it wont sell at 85K + 2k (trsf fee) + 1k(rd tax) = 88k?

would u buy a 1 yr old car at 12% off the the price of a brand new price?

buying brand new gives u
-lower interest rate
-1st ownership, and hence better resale value (approx a few Ks for a 100k car if u sell it off in 3 to 5 yrs time) in the future
-choice of colours, both int and ext
-brand new feel/smell
-knowing that the car has no history

besides, not forgetting now that we have PI and even used imported cars which are even way cheaper than PI.
so if AD is selling 100k, PI might be selling low 90Ks
its very very hard for the car to move at 85k.

so depre for first yr? 20%

sorry for long story, not very good at summary from secondary sch days

 

[SpyVeilside]

Re: Depreciation of 335 convertible

No.. but a direct 40k savings for the 335i Convertible compare to PML.. lol..
Lower depreciation, lower car price, lesser interest, excellent after-sale service, same warranty & brand new car!

u sell 2nd hand too?

 

[Slater]

Re: Depreciation of 335 convertible

No.. but a direct 40k savings for the 335i Convertible compare to PML.. lol..
Lower depreciation, lower car price, lesser interest, excellent after-sale service, same warranty & brand new car!

specs the same?

 

[SpyVeilside]

Re: Depreciation of 335 convertible

secret :shhhh:
but we don't like to carry lower specs unit..

specs the same?

 

[C3P0]

Re: Depreciation of 335 convertible

Hi joshdway,
Very good read. Thanks for sharing. Now I regretted for not bargaining hard the last time :verysad:

alot of owners who are selling their own cars are asking for a higher price than what the dealers are.
their logic are mostly the same and flawed imo. they think 'if a dealer can sell it for $X, i should be able to sell mine for $X + 2 or 3k because pple prefer dealing with the owner direct.

You are right. Under normal circumstances, direct sellers will price their cars in between a dealer's take in price and another similar dealer's final selling price in the market.

 

[hitmee]

Re: Depreciation of 335 convertible

i prefer to deal with dealer.

less hassle.

 

[Slater]

Re: Depreciation of 335 convertible

i feel that dealers price is the fair value price for stock cars. mod cars is a diff story.

 

[hoks]

Re: Depreciation of 335 convertible

Nice write up Josh... just to add, some other factors like current new car price (COE fluctuations) and demand/supply plays a part too.

TS, can take a look @ this ad for a guide.

Used BMW 335i Convertible Car for Sale in Singapore, Henly Enterprises Co - sgCarMart

 

[niteblu]

Re: Depreciation of 335 convertible

Josh, well put across.
20-25% depre. is a fairly accurate norm.
Of course many people pay much more, but that's where dealers make their gravy.

To sum it up. The true transactable price you should always target.
Is a shade under the dealer's take in price + their target $5k+ mark up.

Of course the dealer's take in price is a figure that needs a bit of investigation to derive.
Just act as a car owner looking to sell.
Call dealers. Ask them how much they'd take your target used car at.
A few lowballs later. you should be able to derive an average dealer take-in.

Then add a hypothetical dealer's markup.
And close at any price under that.

 

[joshdway]

Re: Depreciation of 335 convertible

thanks guys....

well, like i said, having been on both sides of the relationship via a dealer and being self represented gave me those insights.

personally i am open to selling to, buying from dealers too. i however will still like to sell my car on my own to recover abit more, maybe i am a little niao. but for those who sold your own cars before, u know the pain with dealing with potential buyers, esp those who simply cannot make it. i once had a chap smsing me asking 'what's your best price? if u can do $X, i will talk to my dad to ask him'

i laughed so hard when i got it, and initially didnt want to reply as chances are, nothing is going to happen. in the end, i couldnt resist so i smsed back saying 'shouldnt u get a licence even before talking to your dad?'. well, i have to admit, i can be half an assh*ole at times, but i couldnt resist

niteblu : as to how a dealer arrive at his trade in? he just work backwards in terms of depre (if its model which can be resold locally, as in, there's demand and paper + body's simply too low to scrap/export)

e.g a brand new car (costing 120k, final parf of 20k) from AD has straight line depre of 10k a yr. let's say the current market is seeing similar models transacting at no more than 9k depre a yr. so he takes in the car at abt 8 to 8.5K depre (exactly how much depends on his risk appetite, some of them might have a low inventory, so they will buy at say 8.5k depre. those who has high inventory or are stuck with a similar model within their inventory will just offer 8k or even lower. another consideration is how familiar they are with that model).

so if the dealer is buying at 8k. he will quote u (8yrs X 8k) + 20k(PARF at end of 10yrs) = 84k.

he will then likely advertise it for 95k and sell in somewhere in between.

other factors they consider will be if they need to spend any dollars to touch up the car, change the tires etc. if assuming they expect to spend 1k to refurbish the car to a 'sellable' condition, they will just take it in at 1k lower at 83k.

while the margin seems good initially, i know some of them who recently lost money from buyer and selling cars like the altis, vios. why? cuz they committed the trade in price based on the AD's selling price then but only own the car to sell when they take over the physical car say 1 mth later. in between, borneo slash the price of the altis and vios by 6 to 7k. thats it. whatever margin they were hoping for is gone. just work towards breaking even.

its just like longing and shorting the stock mkt.


hoks, you are spot on. this is a simple analysis assuming alot of constants. it gets more complicated when there's big swings in COE, announcement of major policy changes such as adjustment of ARF, PARFs etc. or maybe like right now? resale of prius might drop quite abit due to bad press? lots of etcs......

all dealers know that u will wanna recover some dollars from your mods but non will give u a premium for it. because most of the buyers and hence their customers out there wont appreciate or pay for the mods. and being biz, it doesnt make sense for them to take in the car at a premium too. but the good dealers will apologize and explain it to you and ask if u like to leave the car for them to try to sell via consignment.

however, just like anything else. consignment is a double edged sword. since they didnt buy the car over, there's no cashflow involved. they might not be too motivated selling your unit. in fact sometimes they like to have additional cars at their showroom, esp when its a nice car or they have low inventory. so it looks better for biz.

i know of a dealer who usually deals with camrys, cefiros and the occasional 5 or E class. once i saw he has a 996 there and i told him 'wow, not bad eh, selling a different class of cars now'. his reply was 'good for biz to show i am dealing in such cars too, but no lah, its on consignment'

 

[Shaun Lau]

Re: Depreciation of 335 convertible

thanks guys....

well, like i said, having been on both sides of the relationship via a dealer and being self represented gave me those insights.

personally i am open to selling to, buying from dealers too. i however will still like to sell my car on my own to recover abit more, maybe i am a little niao. but for those who sold your own cars before, u know the pain with dealing with potential buyers, esp those who simply cannot make it. i once had a chap smsing me asking 'what's your best price? if u can do $X, i will talk to my dad to ask him'

i laughed so hard when i got it, and initially didnt want to reply as chances are, nothing is going to happen. in the end, i couldnt resist so i smsed back saying 'shouldnt u get a licence even before talking to your dad?'. well, i have to admit, i can be half an assh*ole at times, but i couldnt resist

niteblu : as to how a dealer arrive at his trade in? he just work backwards in terms of depre (if its model which can be resold locally, as in, there's demand and paper + body's simply too low to scrap/export)

e.g a brand new car (costing 120k, final parf of 20k) from AD has straight line depre of 10k a yr. let's say the current market is seeing similar models transacting at no more than 9k depre a yr. so he takes in the car at abt 8 to 8.5K depre (exactly how much depends on his risk appetite, some of them might have a low inventory, so they will buy at say 8.5k depre. those who has high inventory or are stuck with a similar model within their inventory will just offer 8k or even lower. another consideration is how familiar they are with that model).

so if the dealer is buying at 8k. he will quote u (8yrs X 8k) + 20k(PARF at end of 10yrs) = 84k.

he will then likely advertise it for 95k and sell in somewhere in between.

other factors they consider will be if they need to spend any dollars to touch up the car, change the tires etc. if assuming they expect to spend 1k to refurbish the car to a 'sellable' condition, they will just take it in at 1k lower at 83k.

while the margin seems good initially, i know some of them who recently lost money from buyer and selling cars like the altis, vios. why? cuz they committed the trade in price based on the AD's selling price then but only own the car to sell when they take over the physical car say 1 mth later. in between, borneo slash the price of the altis and vios by 6 to 7k. thats it. whatever margin they were hoping for is gone. just work towards breaking even.

its just like longing and shorting the stock mkt.


hoks, you are spot on. this is a simple analysis assuming alot of constants. it gets more complicated when there's big swings in COE, announcement of major policy changes such as adjustment of ARF, PARFs etc. or maybe like right now? resale of prius might drop quite abit due to bad press? lots of etcs......

all dealers know that u will wanna recover some dollars from your mods but non will give u a premium for it. because most of the buyers and hence their customers out there wont appreciate or pay for the mods. and being biz, it doesnt make sense for them to take in the car at a premium too. but the good dealers will apologize and explain it to you and ask if u like to leave the car for them to try to sell via consignment.

however, just like anything else. consignment is a double edged sword. since they didnt buy the car over, there's no cashflow involved. they might not be too motivated selling your unit. in fact sometimes they like to have additional cars at their showroom, esp when its a nice car or they have low inventory. so it looks better for biz.

i know of a dealer who usually deals with camrys, cefiros and the occasional 5 or E class. once i saw he has a 996 there and i told him 'wow, not bad eh, selling a different class of cars now'. his reply was 'good for biz to show i am dealing in such cars too, but no lah, its on consignment'

Good explanation. Very detailed and with a hint of the psychology and maths of trading being explained.

But actually when it comes to selling cars, just sell at a markup from the average price received from dealers can already. one way i found effective is to just call QUOTZ and get a rough guesstimate based on their recent sale prices for your car. it tends to be on the higher end of the price offered by dealers. Then just add a few thousands on top.

Considering the hassle, sometimes not worth it to sell yourself.

Also for buyers, sometimes not worth it to buy from direct owner as we need to do up the car ourselves. Some dealers also offer warrantys when you buy through them which direct seller dont.

Also dont ever try selling an accident car yourself and not declaring it or hoping that the seller didnt notice. I heard from some dealer that the buyer have the legal right to pursue the matter even after the sale is closed.

 

[ac323]

Re: Depreciation of 335 convertible

Hi Josh,

good info......
cheers

IMO,

if u are planning on selling the car to direct buyers in the future, both white and black are very safe. after all, white is the new black?

as for depre, one yr old, has to be 20% off
sometimes dont refer too much to sgcarmart
all the prices u see there are asking prices, not transacted prices
eventually how much are those cars transacted at, its not stated right?

i do of some dealers personally and they all tell me something, the margins for used cars this days aren't as good as before. sometimes for a car like a e90, margin's just 3k after doing up bodywork, replacing damaged/neglected parts, paying sales comm to the sales person, servicing the car etc.

why sometimes we see dealers asking for relatively 'high' prices is because as an industry, no single dealer wanna advertise at a lower price than the market price. make that the market asking price. otherwise, its a price war that doesnt benefit any of them. however among all of them, they know how much one another are selling each model so the eventual selling price is much lower.

the other phenomenon i noticed is that within sgcarmart? alot of owners who are selling their own cars are asking for a higher price than what the dealers are.

their logic are mostly the same and flawed imo. they think 'if a dealer can sell it for $X, i should be able to sell mine for $X + 2 or 3k because pple prefer dealing with the owner direct.

true and not true. i have been at both ends before, selling and buying directly.

as a buyer, i dont really care if i am buying from the owner or dealer as long as i am confident that the car is in a good shape, under warranty etc. what makes u think a end owner will always be 100% truthful? i have also bought cars from dealerships who tell me things i didnt notice, like the history of the car and what parts has been replaced before and why?

best thing is to bring a person who is familiar or confident of inspecting a car along. and a sale will transact as long as the price is right and fair.

why the first yr depre is usually abt 20%?
assuming a car which cost 100k brand new
a sale will eventually be made ard 80k because the car will most likely be advertised at 84/85k to be bargained down (its a local culture, most will bargain and not buy at the list price).
factor in a transfer fee of 2k, maybe road tax of 1k (new car like BMW, mercs, Lexus comes with free 12 mths rd tax, audi, porsche 6mths), higher interest rate for used cars (might not be that different this days due to a low ir across board).
the car has to be sold at 80k!
it wont sell at 85K + 2k (trsf fee) + 1k(rd tax) = 88k?

would u buy a 1 yr old car at 12% off the the price of a brand new price?

buying brand new gives u
-lower interest rate
-1st ownership, and hence better resale value (approx a few Ks for a 100k car if u sell it off in 3 to 5 yrs time) in the future
-choice of colours, both int and ext
-brand new feel/smell
-knowing that the car has no history

besides, not forgetting now that we have PI and even used imported cars which are even way cheaper than PI.
so if AD is selling 100k, PI might be selling low 90Ks
its very very hard for the car to move at 85k.

so depre for first yr? 20%

sorry for long story, not very good at summary from secondary sch days