Need advice on used car price

[Extinguisher]

Not v experienced on used car, so want some advice. What is a reasonable price to pay for an 08 Mazda 5, presuming car is in good condition? I see sgcarmart sells around 60k but not sure if this is fair price. Roughly how would you calculate price?

[Bigtoothpick]

Very good question. One I suspect not many buyers think too much about beyond comparing between same/similar cars from different dealers. If that is your only criteria then pls ignore the rest of my post here.

 

The used car market is pretty distorted, due to the COE price fluctuations through the years. 2008 cars have very much lower COE prices compared to current levels, yet used car dealers are benchmarking the prices against new ones. So basically, all 2008 cars are over priced.

 

HOWEVER, if your budget dictates a used car around that year, then no choice. If you are willing to put aside paper value (I.e. COE value), then the used car depreciation should be lower than that of the equivalent new one.

 

Mazda 5 PARF I estimate about $8k. New car selling around $130k. Straight line depreciation around $12.2k /yr. Apply that to a 2008 car that has 4 years of life left, the selling price is around $56k. Which is what used car dealers are asking for OR HIGHER, which to me is ridiculous.

Edited July 19, 2014 by Bigtoothpick

[Unltd]

Very good question. One I suspect not many buyers think too much about beyond comparing between same/similar cars from different dealers. If that is your only criteria then pls ignore the rest of my post here.

 

The used car market is pretty distorted, due to the COE price fluctuations through the years. 2008 cars have very much lower COE prices compared to current levels, yet used car dealers are benchmarking the prices against new ones. So basically, all 2008 cars are over priced.

 

HOWEVER, if your budget dictates a used car around that year, then no choice. If you are willing to put aside paper value (I.e. COE value), then the used car depreciation should be lower than that of the equivalent new one.

 

Mazda 5 PARF I estimate about $8k. New car selling around $130k. Straight line depreciation around $12.2k /yr. Apply that to a 2008 car that has 4 years of life left, the selling price is around $56k. Which is what used car dealers are asking for OR HIGHER, which to me is ridiculous.

Yup, you are right... Then don't buy lor.... :)

[nazerath]

The prices of used cars are crazy, I had initially wanted to get a used car but was shock that the depreciation is close to a new car.

 

Some cars which are bought with low coe now sell as if their coe is high. What will happen if you somehow that car got a major repair n you want to scrap it, yr coe balance how?

[Bigtoothpick]

Yup, you are right... Then don't buy lor.... :)

Yup, still holding out... :-)

[Matrix0405]

The prices of used cars are crazy, I had initially wanted to get a used car but was shock that the depreciation is close to a new car.

 

Some cars which are bought with low coe now sell as if their coe is high. What will happen if you somehow that car got a major repair n you want to scrap it, yr coe balance how?

 

Can budget $1K less then the depreciation for new car, for a 5yr old. If depreciation for new is $12K, then old shd be max $11K. If old is $13K, then you know something is not right, like most cars in sgcarmrt.

[Unltd]

 

Can budget $1K less then the depreciation for new car, for a 5yr old. If depreciation for new is $12K, then old shd be max $11K. If old is $13K, then you know something is not right, like most cars in sgcarmrt.

It is because of the quantum and the loan ratio. If can't afford the total amount of $xxxk or need to take more than 50% loan... Then no choice.

[Bigtoothpick]

It is because of the quantum and the loan ratio. If can't afford the total amount of $xxxk or need to take more than 50% loan... Then no choice.

Yup, used car dealers targeting people who can't or do not want to afford new car prices. Hence pricing somehow benchmarked to new prices....

[Extinguisher]

Anyone knows how much was a Mazda 5 selling new in 08? Can i base on the 08 price and make my offer?

[Kyrios]

Anyone knows how much was a Mazda 5 selling new in 08? Can i base on the 08 price and make my offer?

if my memory does not fail me, it should cost abt 95K back in 2008..brand new..

[Bigtoothpick]

Anyone knows how much was a Mazda 5 selling new in 08? Can i base on the 08 price and make my offer?

See this : http://www.------.com/car-reviews/275/road-test-mazda-5-2.0/4. Around $78k.

 

To your second question: sure. Just be prepared to be laughed at by the dealer. Seriously.