Low Resale Value? Let Dive into New Car Pricing and Sales Strategies

[Carbon82]

9 hours ago, bobbyhill said:

@Carbon82  AD succeeded is it because they managed to get the car off their books?

how much less will the resale value be if im the second owner as compared with a $50k discount??

You have to consider the overall package. Some of these used car do not come with free servicing (BSI or BSI+), and warranty may be by the used car dealer instead of PML. 

In general, 3rd hand car will be at least $1K - $2K lower in annual depreciation than car with just 1 owner, so you go and do the maths. 

 

8 hours ago, Ct3833 said:

you are right too. And I never bought one from BMW lah, my cars all the while have always been BBB(Below Bread and Butter) car, never BMW before.😅

Your BBB is COE Mersaylee, more atas than say VW, Toyota, Honda, Mazda, etc. 

 

1 hour ago, Lethalstrike said:

Really not a coincidence that these 1 owner cars with less than 100km happened to be BMWs.

I'm thinking if it could be that PML trying to hit the new registrations targets set by BMW Asia by pre-registering new cars, even before they found any actual buyers. Of course by pre-registering would mean 1 owner count, and for obvious reasons PML can't sell these cars as pre-owned in their own premises. The next logical thing to do is to dump them to used car dealers who are collaborating with PML. 

Good find! I was think of doing some homework on sgcarmart this weekend and you have already submitted!

 

1 hour ago, Dilemma said:

Its funny how many people think the list prices of AD are the selling price. Even for walk in, there's OT, discount etc. 

That is why AD have to rely on OT to attract customers. I have a friend who know nuts about car price, profits, PARF, etc. When PML offer him $20K OT for his 6 year XC60, he was so excited to call me and share with me the good lobang. After I show him the cost breakdown (using my excel spreadsheet), he almost fall from his chair and decided to give up the "good" deal. 

[Dannnn]

1 hour ago, Dilemma said:

Its funny how many people think the list prices of AD are the selling price. Even for walk in, there's OT, discount etc. 

That's why only buyer who go in and take a look , will know.

some people budget 200k for their car, and if list price is 240k, they dont even bother to go take a look because it exceed their budget.

But they wont know after all the OT etc, can get it at 210k or so.

mostly is only the B&B car that is more of direct price, where only a few k off is possible.

[Ct3833]

2 hours ago, Dannnn said:

That's why only buyer who go in and take a look , will know.

some people budget 200k for their car, and if list price is 240k, they dont even bother to go take a look because it exceed their budget.

But they wont know after all the OT etc, can get it at 210k or so.

mostly is only the B&B car that is more of direct price, where only a few k off is possible.

I always advise my friends who are visiting merce or BM showrooms and alike to leave their credit cards, wallets , check boks at home, because once  they walk in , the temptation will be irresistible after hearing all the huge service credit, over trade, high trade in etc.

[Mkl22]

6 hours ago, Dilemma said:

Its funny how many people think the list prices of AD are the selling price. Even for walk in, there's OT, discount etc. 

depends on which AD and what cars. Some bread and butter are really list list. 

[Dannnn]

9 hours ago, Mkl22 said:

depends on which AD and what cars. Some bread and butter are really list list. 

yes, that is why those people who buy these brands, tend to think those people who bought BBA or even Lexus, at list also.

[Ct3833]

9 hours ago, Mkl22 said:

depends on which AD and what cars. Some bread and butter are really list list. 

Those b&b cars   dealers that are making  $10k plus or so will not give much discount or overtrade, fact is their margins have  not much room for them to maneuver.

[Freeder]

19 hours ago, Dilemma said:

Its funny how many people think the list prices of AD are the selling price. Even for walk in, there's OT, discount etc. 

Since they wanna play so big on the list price, car buyers should bring their samurai sword to slash the price down😂

[Sdf4786k]

On 6/14/2022 at 11:35 PM, Carbon82 said:

@Fitvip PML will register airshow car under the buyer's name before the start of the event (for insurance purposes according to my understanding through my ex-MD who bought a 520i back in late 2000s). So the buyer will be the 1st owner on LTA records, although the car will be trashed by those part time drivers for about 2 weeks (including the pre-event training and familiarization drives), before handing over to the owner. Some lucky few will get brand new undriven car (as these are the reserve fleet).

@Soya I just saw your 2nd post asking about who will absorb the discount for airshow car. In short, it is BMW Asia. And as I have shared earlier, the spec are slightly different so it will be easier for PML to share the details with potential buyer, and let them decide which one is a better deal. Afterall, airshow cars were also transacted under PML, so they will still get their share of the profits.

@Arogab As long as the car has been registered (with a registration date shown in the advertisement), buyer will become the 2nd owner. All I can say is that the resale value of a 2nd hand car, vs a 3rd hand car will be different, easily by a few Ks. So unless the car is priced at least $20K to $30K lower than brand new unit (after all the O/T, discounts and other perks - e.g. free servicing, servicing credits, shopping / petrol vouchers, etc.), not worth to get these so call brand new used car, imo.

@Lovemyride There is no restriction to the transfer of ownership within the 1st 6 months, if the car is registered using Cat E (open cat) COE. If the car is registered using cat A or B COE, it cannot be transferred within the 1st 3 months, and between 4th to 6th months, a levy (equivalent to the price different in the COE premium in the same cat - COE premium paid vs current COE premium) will be payable before transfer of ownership will be allowed.

Airshow cars are de-spec with the ability for the used car dealers to offer an even lower price as it’s been identified as a airshow car .

unless it’s equal to every other cars pml sell in terms of spec, I would not touch it unless it’s zero margin price or better than second hand car dealer prices as is the case for mazda3 Uber new cars margin.

pml would have use the marketing budget n factory price to get the car in.

but like what @kobayashiGT would say. Don’t pichar lobang.

there are still more lobang but this is just the open secret that everyone who buys bmw know of

[Carbon82]

Back to the topic. Take this XC60 B6 for example, even Wearnes cannot escape from reality.

Advertisement for this unit first appears on sgcarmart in early June 2022 (I am guessing this is a test drive unit as the mileage posted then was 1xxx Km), with an asking price of $288K. RRP for brand new unit was $328K iirc.

During the Motorshow at Expo in mid August, the same car was offered at $279K. One of my friend was interested and asked me for opinion. I told him to offer $250K for it, the SE said impossible and walk away without bothering to nego with my friend. My friend was shocked and asked me how I derived at that pricing. Well with a cost price of ~$230K+ and considering that it has been used as a test drive and loaner car (the mileage has been going up), $250K is more than reasonable.

The price was further lowered (on sgcarmart) to $269K, $259K and $255K from then. I just had a chat with a dealer friend, and he told me their take in price would not be more than $230K. So whoever interested, kah kah go offer $240K, and see if Wearnes will continue to hang on to this depreciating asset.

[Ct3833]

13 minutes ago, Carbon82 said:

Back to the topic. Take this XC60 B6 for example, even Wearnes cannot escape from reality.

Advertisement for this unit first appears on sgcarmart in early June 2022 (I am guessing this is a test drive unit as the mileage posted then was 1xxx Km), with an asking price of $288K. RRP for brand new unit was $328K iirc.

During the Motorshow at Expo in mid August, the same car was offered at $279K. One of my friend was interested and asked me for opinion. I told him to offer $250K for it, the SE said impossible and walk away without bothering to nego with my friend. My friend was shocked and asked me how I derived at that pricing. Well with a cost price of ~$230K+ and considering that it has been used as a test drive and loaner car (the mileage has been going up), $250K is more than reasonable.

The price was further lowered (on sgcarmart) to $269K, $259K and $255K from then. I just had a chat with a dealer friend, and he told me their take in price would not be more than $230K. So whoever interested, kah kah go offer $240K, and see if Wearnes will continue to hang on to this depreciating asset.

This is a good way to bargain for less mainstream brand,  this will not work for merce and BM, they would rather throw it to republic or prime select to handle. Not familiar  with wolwol, do they bave a used car division to offload their trade in cars or preload to clock sales before financial year end? 

Edited November 19, 2022 by Ct3833

[Hamburger]

@Carbon82 

B6 signifies FL model? Confused.

[Benarsenal]

1 minute ago, Hamburger said:

@Carbon82 

B6 signifies FL model? Confused.

New engine. Mild hybrid IIRC

[Carbon82]

21 hours ago, Ct3833 said:

This is a good way to bargain for less mainstream brand,  this will not work for merce and BM, they would rather throw it to republic or prime select to handle. Not familiar  with wolwol, do they bave a used car division to offload their trade in cars or preload to clock sales before financial year end? 

BMW is another one who has been dumping brand new used car to used car dealers. Some of these used car dealers are like a mini PML, having all model with different exterior and interior colours for buyer to choose from.

Many of these units were actually not advertised online, but will be shown to potential buyer when they visit the used car dealers. For that XC60 I posted earlier, it was put on sales by Wearnes Pre-Owned, which is their used car arm, and if they cannot find a buyer for it, will be disposed to used car dealer after about 6 months.

 

20 hours ago, Hamburger said:

@Carbon82 

B6 signifies FL model? Confused.

T5 & T6 are the pre-facelift model with petrol only engine (comes with higher horsepower). B5 & B6 are facelifted model which has 48V mild hybrid setup, but at the expense of lower horsepower and lesser boot space.

[Mkl22]

Wearnes mark up for their brand new cars are high enough to cover these test and “management” models. 

C&C doesn’t practice all these management units for sale as much. Merc all hang up and sell. And still sells. 
it just shows where majority of the buying public will spend their money. No matter features or drivability or etc, whoever sells more wins. 

[alex976]

C&C dun really hang up and sell. If u are ok with out-going models like the GLC the SE can help u with real OT. Not those OT that jack up both car price and trade in price. 

C&C willing to slash if u have a car to trade in but u need to do ur hwk 1st to make sure C&C dun bluff u. U alw need to ask before trade in how much isit with all the discount then talk abt trade in then lastly OT. Do it step by step. My mum gt a good deal from C&C when she trade in her C200 cos C&C trade in price outside cannot match and C&C slash their margin to sell their GLC.

I feel B&B cars their discount not alot cos they selling by volume and low margin. Luxury cars the bad things is their RRP and true selling price u need to do hwk and also know how to squeeze the SE but must not do it too excessively. Most important be sincere and reasonable.