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Old 13-06-2011, 04:08 AM   #1
FalconXV
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Default Resale Value

What are the factors that make a car depreciate/appreciate in value more than another? Is there a science behind it?

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Old 13-06-2011, 04:11 AM   #2
malazn mafia
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Default Re: Resale Value

Badge, perceived quality, color, number of identical cars in marketplace at the same time, etc, etc. Whether there is demand for that model or category of vehicle. Then you have mileage and condition. But it really depends on what sort of car you're talking about
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Old 13-06-2011, 07:55 AM   #3
2011G6E
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Default Re: Resale Value

Original price for a start. We just bought our son a new Suzuki Alto for $11,990 drive away, and I am realistic enough to know that there are hundreds of these little jiggers running around. Couple this with a cheap sale price and the resale value in four or five years probably won't be amazing.

However, it's hardly a set-in-stone guideline...Our G6E was rather pricey, but you could hardly call it "exclusive". I'm reminded of the old Jerry Seinfeld gag where he says about car names, "Ford has the LTD, which means "Limited"...what exactly does that mean? They're not a rare car. Maybe it means "Limited to how many we can sell"..."

Any car is worth a decent percentage of it's origina sale price if it has a good service history, hasn't obviously been thrashed and neglected, and still has all the reciepts and paperwork. A new owner knowing that he won't have to spend money straight away or soon in the future is another good point...if the tyres are getting worn, buy a cheap set and put on it, maybe pay a bit of cash and get someone to detail it.

There's no real science to it. And the badge is really no guarantee of resale value either. Look at old Rolls Royce Silver Shadows from the 1970's...they were the "best cars in the world", exclusive signs that someone was rich, a signal that you had made it in the world. Yet now you can pick the damn things up for under $20,000 and I've seen very good ones for well under $30,000.
Here's one advertised at the moment:
http://www.carsales.com.au/all-cars/...94959600%20900
$13,100...that's almost worth buying and making into a unique custom.
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Old 13-06-2011, 10:15 AM   #4
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Default Re: Resale Value

Now THAT would be an incredible Variety Bash vehicle.......well until I broke it
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Old 13-06-2011, 11:00 AM   #5
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Default Re: Resale Value

Many factors determine resale value. All things being equal, the biggest issue would be the disreprency between the buyers in the new car market, and the second hand market. If fleets are buying 60 to 70% of a particular car, then these buyers will not be there when the cars go on the second hand market (most fleets dont buy second hand).
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Old 13-06-2011, 12:44 PM   #6
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Default Re: Resale Value

Manufacturers bringing out a new model every 10 mins.
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Old 13-06-2011, 03:06 PM   #7
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Default Re: Resale Value

Cant see any science behind it
If i was to buy a new car purely on its resale in 3-5 years on the % of price
It would be the cheapie import cars , funnily enuf
14-15 K new , in 3-5 years maybe worth maybe 5 K
New commo or falcon 30-50 K , in 3-5 years lucky to pull a 1/4 of that
But then you have the issue of the cheapie imports
Look at the great wal 4x4 dual cabs for what 25K drive away
Thatll be nearly half price of an equvelant
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Old 13-06-2011, 05:45 PM   #8
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Default Re: Resale Value

Quite simply, demand, popularity, perception.

Look at the Commodore/Falcon for example.
Any dealer will tell you a Commodore is easier to move simply because the general public lean that way regardless of age, they're just popular.
Then there is the perception of the Falcon doing headgaskets at every set of lights, now you and i both know headgasket issues with Falcons is for the most, a thing of the past, but the general public only remember the bad parts.
Combine the two and you have strong demand for one making it a sellers market and the other hard to sell and therefore a buyers market.
dealers arent in the business of holding onto cars, they want them turned over as quick as possible, moreso now with money tight, so they discount the stuff that is sitting around.
Obviously if a particular car is hard to sell and will need to be priced below its counterpart, the amount a dealer will give must be less to maintain their margin.
There are always exceptions to the rule and will be based on instant appeal. This is why dealers add fancy bodykits and flashy wheels to bog stock vehicles and then position them to get maximum exposure.
Look at the 19k BA2 XR in the other thread, many have said too dear and the few who like it are drawn to its appeal, not too many have said they liked the price, but it still pulled a premium.
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Old 13-06-2011, 06:31 PM   #9
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Default Re: Resale Value

depends were you live too. i took my calais up to darwin and got 7 more grand than what i could get in brisbane.
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Old 13-06-2011, 06:53 PM   #10
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Default Re: Resale Value

Cars that are unique even ever so slightly seem to have beeter resale than std ones
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Old 13-06-2011, 07:11 PM   #11
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Default Re: Resale Value

There's not really any science to it but one thing that has a big influence is how many examples are sold new.For example an XR6 non turbo automatic sedan with no options will depcreciate quite a lot because they sell so many to rental companies and fleets so therefore they end up for sale everywhere after a few years.At the opposite end of the equation is something like a turbo diesel Landcruiser Sahara.Because they are a million dollars new,not many people can afford them so when one turns up in an auction it usually sells for ridiculous money.A dealer will still buy it because even though he won't make a big profit on the car he will make his money from finance and aftermarket rubbish.
Anything a bit unusual and desireable always holds it's value better than bread and butter stuff.Examples are small autos,diesel commercials and 4x4s,7 seat Falcon or Commodore wagons,and manual V8s or turbos.
Anything base model is the worst of all.
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Old 13-06-2011, 10:11 PM   #12
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Default Re: Resale Value

i`ve said it before but one of the main reasons imo is there are so many low mileage good 2nd hand cars on the road, our market is flooded with them.
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