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The BMW Range
5 Series
To buy a pre-owned unit or brand new?
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<blockquote data-quote="Lee36328" data-source="post: 118850" data-attributes="member: 113"><p>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.</p><p></p><p>At the point of selling the car, if demand exceeds supply, you'll get a good price. Vice versa.</p><p></p><p>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.</p><p></p><p>The question is, whether the difference will be RM23k, or more, or less.</p><p></p><p>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.</p><p></p><p>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. </p><p></p><p>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.</p></blockquote><p></p>
[QUOTE="Lee36328, post: 118850, member: 113"] 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. [/QUOTE]
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