How to calculate depreciation? - Z4

[mickey_]

Hi All,

I am quite confused how to calculate for a used Z4. Am looking out for one to replace my other smaller 2-seater and wanted to get some clarity on how the annual depreciation is calculated. Many thanks in advance on friends who has given advise to me.

1. A used E85 (Z4) as shown in SGcarmart

Used BMW Z4 Car for Sale in Singapore, Elite Car Trading - sgCarMart

List Price = $85,800
OMV = $59,678
If I dive until COE expires I shall get back (50%) $29,839
Assuming full settlement in cash and no loan
Number of months left (until 26 Feb 07) = 36 months

Minus the $29,839 that I would be getting back at the end of 10 years from the list price of $85,800, I will get a $55,961.

The next part gets me confused - Part A and B.

Part A - Some say the Z4 could potentially have a $10K (is it true?) body value at scrap time. If I minus the $55,961 by $10,000, I would get $45,961. Dividing this by 36 months would mean a $1,276 per month or an annual depreciation of $15,320.

Part B - If the above scrap body value is not true, dividing the $55,961 by 36 months gives me $1,554/mth or $18,653/year.

Which calculation is correct and are there anything I have missed out?

 

[mickey_]

Re: How to calculate depreciation? - Z4

I just saw a parallel imported Z4 with a lower price tag. This is a 2006 car but registered in Singapore in 2009. How does the depreciation calculation work?

Used BMW Z4 Car for Sale in Singapore, Absolute Automobile - sgCarMart

I am confused about the statement that "Parf Till 10-04-2016 $16282" since the car was registered on 10-04-06. Does it mean that if I drive past 10-04-16, I would need to forgo my PARF?

This seems like more valued to get as my second car.

Regards.

 

[Baby1M]

Re: How to calculate depreciation? - Z4

I only know....

Part-A: Deregister and export the ride out instead of scrap, you get the extra body value. This is provided u officially sign on the 'export ride out' forms and etc... the entire ride will be exported to some XYZ country.

Part-B: Total scrap value u get is 50% of OMV, end of story. The body will end up in SG's scrapeyard or the whole ride maybe exported out of SG... whereby the 'person' will make some extra $ frm the body value.

 

[Oilman]

Re: How to calculate depreciation? - Z4

Where's Gordon the Gekko?

How about just ignoring the body value... yes take it as $0... and calculate the worst-case scenario number. That way, you'll always be covered if it turns out to be lower than what "they" say, which is often the case.

Body values fluctuate too much to be meaningful and when it's time to sell, the dealer is gonna quote you a shitty number and pocket the difference anyway. Or if you're adventurous and choose to scrap/export the car yourself, the last thing you wanna do is spend time calling up different companies who will all ask you to drive down to get an assessment. It's not a pleasant experience.

 

[MW]

Re: How to calculate depreciation? - Z4

the difference is only 3k+

just buy it and ask more important questions like FC and where got good car wash

 

[Mockngbrd]

Re: How to calculate depreciation? - Z4

I am confused about the statement that "Parf Till 10-04-2016 $16282" since the car was registered on 10-04-06. Does it mean that if I drive past 10-04-16, I would need to forgo my PARF?

this is correct. its also something most agents will "forget" to tell you.

 

[mickey_]

Re: How to calculate depreciation? - Z4

this is correct. its also something most agents will "forget" to tell you.

Many many thanks.

So not advisable to get a parallel import vehicle, because the sums does not add up and ended up not getting PARF.

Now on hunting mode.....

 

[mickey_]

Re: How to calculate depreciation? - Z4

the difference is only 3k+

just buy it and ask more important questions like FC and where got good car wash

3+k a year can get many good car wash. I like a good car wash. FC should be better then my current ride which is about 8km/L.

 

[MW]

Re: How to calculate depreciation? - Z4

actually there are so my variables. U get a higher depreciating Z4 but excellent engine..u save a lot on repairs.

U get a low depreciating one, u spend a bomb on repairs, thus negating any "earnings" or "savings".

 

[kenntona]

Re: How to calculate depreciation? - Z4

Best example - 7 year old BMW, low depre, drive 6 mths, gearbox/mechatronic up lorry. Say $4K. Do or don't do?

Do. Average down.

3 months later, power steering pump up lorry. Say another $3K.

Do or don't do? Do.

And 3 mths later......

 

[MW]

Re: How to calculate depreciation? - Z4

someone here first day drove out change rims and car cannot start liao...not still in ws


I assume he got a good deal for his car, otherwise he wouldn't have bought it...

 

[richardwan]

Re: How to calculate depreciation? - Z4

No one can tell when parts will up lorry. A higher depreciating car can also have parts uplorry, since price difference is mainly a dealer profit margin issue.

The best that any used BMW buyer can do is send the car to inspection at site sponsor workshop before committing.

In a case where two cars are certified ok by the workshop, wouldn't it make more sense to choose the lower depreciating car?

Best example - 7 year old BMW, low depre, drive 6 mths, gearbox/mechatronic up lorry. Say $4K. Do or don't do?

Do. Average down.

3 months later, power steering pump up lorry. Say another $3K.

Do or don't do? Do.

And 3 mths later......

 

[T6]

Re: How to calculate depreciation? - Z4

Hi All,

I am quite confused how to calculate for a used Z4. Am looking out for one to replace my other smaller 2-seater and wanted to get some clarity on how the annual depreciation is calculated. Many thanks in advance on friends who has given advise to me.

1. A used E85 (Z4) as shown in SGcarmart

Used BMW Z4 Car for Sale in Singapore, Elite Car Trading - sgCarMart

List Price = $85,800
OMV = $59,678
If I dive until COE expires I shall get back (50%) $29,839
Assuming full settlement in cash and no loan
Number of months left (until 26 Feb 07) = 36 months

Minus the $29,839 that I would be getting back at the end of 10 years from the list price of $85,800, I will get a $55,961.

The next part gets me confused - Part A and B.

Part A - Some say the Z4 could potentially have a $10K (is it true?) body value at scrap time. If I minus the $55,961 by $10,000, I would get $45,961. Dividing this by 36 months would mean a $1,276 per month or an annual depreciation of $15,320.

Part B - If the above scrap body value is not true, dividing the $55,961 by 36 months gives me $1,554/mth or $18,653/year.

Which calculation is correct and are there anything I have missed out?

Part A is true but it is subject to overseas demand as the car will be purchased by exporters for export purpose. $10k is quite reasonable but I suggest you factor it at between $5k to $10k so as to better manage your own expectation.

The chassis value is mkt driven and no one can really guarantee a value that will only materialise two years later.

Another possibility is that you might trade in your Z4 for a new car and new car dealers can offer to take it in higher to close a new car deal with you.

 

[kenntona]

Re: How to calculate depreciation? - Z4

No one can tell when parts will up lorry. A higher depreciating car can also have parts uplorry, since price difference is mainly a dealer profit margin issue.

The best that any used BMW buyer can do is send the car to inspection at site sponsor workshop before committing.

In a case where two cars are certified ok by the workshop, wouldn't it make more sense to choose the lower depreciating car?

Sure, assuming mileage, car condition, wear and tear all the same. And checked by the same workshop.

At least in theory.

 

[Baby1M]

Re: How to calculate depreciation? - Z4

Many many thanks.

So not advisable to get a parallel import vehicle, because the sums does not add up and ended up not getting PARF.

Now on hunting mode.....

All rides r imports lor so please do not get mixed up with Used Import, Parallel Import and AD Import.

New cars: Parallel Imports are similar to AD Imports but not the same. Too lenghty to input.
Used/Preowned cars : Parallel Importers or AD, sama except some 'clown' dealers.
Used Imports: Cars was first registered in some RHD countries (few months to 3yrs old) but is now registered in SG with a 10yr COE.

Cents worth.

 

[mickey_]

Re: How to calculate depreciation? - Z4

Gam sia, gam sia.

The most important take away is that the PARF value refund is based on the original date of the car, ie for example 2006 while the registered date in Singapore could be in 2009. Meaning the value would be lost once I hit 2006 and this makes the depreciation higher.

I shall start hunting now...