Why are used cars in HK so expensive

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  1. #1

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    Why are used cars in HK so expensive

    I often hear that used cars in Hong Kong are cheap but having just arrived from the UK I find that this is just not the case and dont really understand where this legend comes from. Here are some examples that I have picked out (you could argue to prove a point but I have not found anything cheaper than in the UK even right at the bottom end of the market)

    2001 BMW X5 3.0 HK250k UK (in HK$)200k
    2002 mini cooper HK95k UK (in HK$)70k
    1995 Toyota Previa HK19.5k UK (in HK$)16k
    2002 BMW 520 HK150k UK (in HK$)85k
    1998 Honda CRV HK40k UK (in HK$)36k

    I am hoping that I am just looking in the wrong place and that these prices are inflated- anyone got any views

    JC


  2. #2

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    Used cars in HK are cheap compared to new cars in HK, not used cars around the world!


  3. #3

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    hello

    lets start with the basics, european cars are heavily taxed, whilst japanese aren't.
    hence why a honda accord is so much affordable. than a ford mondeo, nevermind a bmw 3 series.

    second thing. its a sellers market here, a few seller, ( possibly big sellers) with a limited supply of buyers, hence why used cars at garages are expensive, esp, one target for the afluent ex pat audience.
    so these dealers artificially inflate prices as they minplulate the market.

    maybe, you should look at ex pat forums for ex pats leaving hk for bargains, there even possibly free cars, however, please be aware, some dealers are in the fourms.


  4. #4

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    Interestingly all my prices for HK used cars have come from the expat forum rather than dealers as you say this should be more authentic but it still does not make sense that even lower new price japanese cars are more expensive used here than the UK unless there is a supply issue (which I dont really see with bog standard vehicles). I will keep looking out for those free cars!!!! Underlying still dont understand why an 8 year car is 25% more expensive than the UK unless what is actually happening is that the private market is using dealer prices as a reference and the relatively uninformed (or flush with cash!!!) market is accepting it
    JC


  5. #5

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    Quote Originally Posted by Jeremy Clarkson
    I often hear that used cars in Hong Kong are cheap but having just arrived from the UK I find that this is just not the case and dont really understand where this legend comes from. Here are some examples that I have picked out (you could argue to prove a point but I have not found anything cheaper than in the UK even right at the bottom end of the market)

    2001 BMW X5 3.0 HK250k UK (in HK$)200k
    2002 mini cooper HK95k UK (in HK$)70k
    1995 Toyota Previa HK19.5k UK (in HK$)16k
    2002 BMW 520 HK150k UK (in HK$)85k
    1998 Honda CRV HK40k UK (in HK$)36k

    I am hoping that I am just looking in the wrong place and that these prices are inflated- anyone got any views

    JC
    Used cars were cheap up until the last 2 years, as retail rent hiked up considerably, adding higher cost to the bottom line of used car dealers.

    Generally its cheapest to buy a used car from a fellow expat who is leaving HK, as they generally leave the sale of their car to the last minute.

    In 2004 when I purchased a 1990 Guards red Porsche 964 C4 cabriolet manual off an expat who was leaving, the price was $125,000, today the same car is closer to between $160,000 - $198,000 for the identical spec car.

    I think it also depends on where it is people are comparing their used car prices to, in our case it was Australia, and HK is still pretty reasonable at expat direct levels, buying from a dealer you will pay a 30% premium.

    Best time to buy a car here was when SARS was active in Hong Kong, prices of everything dropped sharply.

    The best deal I have ever bought here was a 1983 Porsche 930 Turbo, with a RUF modified engine, G50 gearbox, cup wheels, 964 bumpers, tailights and RS spoiler. For $80,000hkd lol. Which was cheaper than anywhere else globally at the time, by a long way.

    1990 - 1995 W129 Mercedes Benz SL V8 & V12 Convertibles are also cheaper here than in the UK, as are most sporty /exotic sports prestige cars. Around 6,000 - 10,000 British Pounds, depending if the glass hard top is included and any AMG kit/wheels included etc.



    A Chinese friend of ours purchased a 1996 Jaguar XJ series 6 months ago off a work colleague who moved and lost his free parking space. He paid $12,000hkd for that car ! lol A French friend of mine purchased the same model car for $35,000 lol. So it pays to learn how to play the car game here from a very early stage. Or you will rip your self off.


    Usual rules apply, have the car you wish to buy checked out by a thorough HKAA inspection, when deposit is paid, and have a clause in the contract that states that if the car turns out to be unsatisfactory via the inspection, you get your deposit back. Don't take anybody's word when buying a car, make sure things are in writing and signed by you and the seller.

    I will agree that in 2008 during a good economy so we are told, prices of rents have pushed prices of cars up..

    Happy car buying
    Last edited by Skyhook; 29-06-2008 at 01:09 PM.

  6. #6

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    I think you may have just helped me here. Sounds like the distress/leaving HK market is the one where "cars are cheaper", which is clearly larger than in most cities. The current price you quote for your Porsche is bang on what it would be in the UK- what that suggests is that the price only levels out if you are buying a near 20 year old car!!!! (a very nice one albeit)

    Thanks

    JC


  7. #7

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    You may also want to consider that many of the cars in HK have a lot lower mileage on the clock as they are not used as much here. So may have held their value a little better.

    Last edited by flygal; 29-06-2008 at 02:10 PM.

  8. #8

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    Quote Originally Posted by flygal
    You may also want to consider that many of the cars in HK have a lot lower mileage on the clock as they are not used as much here. So may have held their value a little better.
    Umm sorry but the low mileage myth is only a myth.

    Winding odometers back every time a car has changed hands is quiet a normal practice here, hence why service histories are rarely produced... Service documents state the odometer reading during each service....A friend of ours bought a LS430 used that had 60,000kms on the clock, 3 months after purchase the timing belt snapped, requiring a new engine. My friends took the car to the authorised agent and discovered the car had infact travelled 220,000kms based on their computer service records the last time they had it in. Most mileage oddometers on cars today are electronic, and can be easilly changed via access to the cars ECU and a laptop running the factory diagnostic software or plug in factory service computer. If you check the diagnostic by the service computer under distance counter, I am pretty confident that it will have a date modified warning mentioned. To prove that the distance value is not original.

    In 68 weeks of driving to the Airport on average 2 to 3 times a week on our current MPV. Which is a 70km round trip from home to work. Thats 14,000kms travelled just to work. We have actually accumulated 19,000kms in that time. Yet the TV station that owned our MPV in 6 years driving all over HK, only managed 61,000km ? Yeah right lol.
    Last edited by Skyhook; 29-06-2008 at 02:36 PM.

  9. #9

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    Cars I've had the opportunity to buy/get in HK in the last few years but passed because I am not interested.

    BMW 5 series: 15K
    Acura Vigor: Free
    Saab 9000: 3K

    Saw a Jag advertised today for 15K, 60K on the clock but older model 1996 I think. There are plenty of good deals if you keep your eyes open...


  10. #10

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    caveat emptor (HK) cars

    used cars the world over are great opportunities for the unwary to be fleeced by the rapacious- so being this is HK you can x that by 10 for used cars here -even if you are shopping privately -and , really who would buy from a HK 2ndhand car dealer ???
    Asking for it, might as well assume the position IMHO!!!
    I have seen some bargains but if you add the cost of petrol, road tax ,tolls parking they would need to be cheap!.I have had the bargain Corolla which died after a year or two -predictably as I drove it into the ground, then paid plenty for a nice 4WD which is a faithful workhorse and I no longer look at my receipts for gas as it hurts too much...


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