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Protecting Your Vehicle's Resale Value
Protecting the of your vehicle is not only prudent but necessary in attaining the right lease package for you. One of the major costs in owning a motor vehicle is depreciation. A car is a depreciating asset. It seems like an oxymoron ‘depreciating’ – ‘asset’. In fact it is quite straight forward. The car is the ‘asset’ and the aging process is ‘depreciating’ its value to the next buyer.
By simply thinking ahead and planning your purchase and taking a modicum of care in its condition you can save yourself hundreds or even thousands of dollars.
By projecting the resale value you can also determine an appropriate ‘residual payment’ or balloon payment for your car finance. This will set your monthly payments and allow you to avoid any unexpected surprises when it comes time to sell and/or refinance your vehicle.
You should also take the vehicle itself into account. Do your homework on the make and model you want. Also include such factors as reliability and practicality into account. A family of 5 does not fit into a cabriolet – It may look good in the office car park, but your own bed at night is always warmer!!
Other important qualities in retaining resale are to look for a slightly used, demonstrators or end of model/year run-outs. They can save you thousands with only minor kilometres that can still be fully leased.
If you are time poor, weary of the ‘car salesman’ or simply a novice; seek professional help in obtaining the vehicle you have chosen.
Another trap many people fall into is the monumental catastrophe of colour choice. Bright yellow belongs on Ferrari’s and Fiat 500’s not a family CX-9.
Watching the current market leading trends is also important, such as the decline in purchases of large vehicles and the increasing popularity of diesel and LPG driven family sedans.
And finally before you do trade-in your current car assess any minor damage as a cost to your sale price. Sometimes a minor scratch will be over looked but smelly internals and/or stained seats may need a steam clean to increase the appeal to a future buyer. You will also have to weigh up the time involved in a private sale verses a trade-in price. Generally you will get a little more in a private sale, but this may take up time you do not have. Do what is best for your situation.
Thinking ahead with a clear head is the best way to increase your re-sale value of your car. Likewise selecting an appropriate residual value will protect you from having a shortfall payment at the end of your lease. Private Fleet consultants can create a tailored finance package which takes all these aspects into account for you including an appropriate lease term, residual payment and cost of ownership packages.
For an explanation of how it works watch the video.
Car Polish Survey
The US consumer survey magazine “Consumer Reports.org” has publsished a wide-ranging research document on car polishes. It makes intriguing reading and the main research results are re-produced below:-
(click on thumbnail to enlarge)
Why You Can't Beat The Price Rip Off
Over the past couple of months, we’ve undertaken the biggest car prices comparison survey ever published.
The clear and incontrovertible conclusion is that we pay far more for our new cars than can be justified.
Of course, we are not alone in this, as many products are more expensive in Australia, and we’ve heard numerous stories about how people have circumvented this by buying direct from overseas using the internet.
So why can’t you do this with a new car? Well, the Motor Vehicle Standards Act (1989) effectively prevents you! These import rules were initially designed for a genuine road safety agenda, but that is now largely irrelevant and is, in effect, acting as a measure of protection for the local importing and manufacturing industry.
Any new car that does not comply with all the provisions of the Act cannot be imported for use on Australian roads, and that means any new car personally imported.
But there are exemptions.
The Personal Import Scheme is a specific exemption from the provisions of the Motor Vehicle Standards Act (1989), but it still has its own administrative rules. The guidelines governing these rules for Personal Imports are essentially that you have owned and demonstratively used a car overseas for a minimum of 12 months before seeking Personal Import Approval. There are close checks made on these claims too, both in terms of ownership and use throughout the twelve month period.
The other major exemption is for cars built prior to January 1st, 1989. These can be imported unrestricted under other ‘special exemption’ provisions – but that date is fixed – it doesn’t move forward from year to year, and there is little likelihood that any changes will be made. You will still have to pay various taxes, including GST when you import the vehicle.
So what about grey imports?
A grey import is a vehicle that is legally imported outside the manufacturer’s legitimate import process. It stems from government decisions taken some twenty years ago that permitted Australians to buy vehicles from overseas that were never sold over here. But once they arrive in Australia they are subjected to a compliance process to conform to Australian Design Rules, and this can sometimes be complicated, tedious and expensive. Such hurdles mean that whilst these cars can represent excellent value, they are mainly restricted to an enthusiast market of limited numbers.
So the bottom line is: if you want to buy a new car and save money by buying it overseas, you have to stay there at least 12 months before you have a chance of bringing it here with you! (Mind you, when you look at the massive price differences in our survey, you may well consider it worthwhile!)
Postscript:- Since our last article on price comparisons was published, the US Dollar and UK Pound Sterling exchange rates have fluctuated significantly. Clearly, this affects any conclusion on price comparisons particularly as importers defended price differentials by ‘hiding behind exchange rates. So we looked at our price comparison tables and re-jigged a couple of examples using the very worst rates that we had working against us to see if prices reverted to a close comparison. Guess what? They didn’t. As you can see below there is a small difference, but in no way does it diminish our claims that we still suffer a huge price disadvantage that should be acknowledged by the motor manufacturers and importers NOW! Furthermore exchange rates have now reverted back to closely resemble the prices quoted in our survey.
Car Price Comparison at Least Favourable Exchange Rates
Vehicle Aust Price US Price UK Price
Mercedes Mb 300 $93,859.00 $48,840.00 $68,801.00
Subaru WRX STI $66,928.00 $35,815.00 $54,225.00
Volkswagen moving forward faster than ever
There are many new VW vehicles showing up on the road now and in the very near future for us all to aspire to. The all-new Beetle, the second generation Touareg and the convertible Golf returns with great style.
The new generation Beetle id brings a well needed masculinity and strength to the table. Coupled with sportiness, trademark interior styling and today’s technology, it is a winner. The Beetle’s engines are those of the award winning Golf to offer you the performance you have come to expect from VW. It is longer, wider and lower than its predecessor which gives it a purposeful stance on the road. VW has incorporated new front end styling and a meaty rear spoiler to add to its modern touches. The Australian specifications are not yet announced but it will be hitting Aussie shores in 2012.
The second generation Touareg is everything you could want in a modern SUV. It is roomy, fuel efficient and impressively light in the steering. On the road it is lower to the ground with a very large nearly athletic profile. It carries (in some engine choices) VW’s BlueMotion Technology and wonderful Nappa leather seats with splashes of ornamental wood and brushed alloy to keep the contemporary styling running throughout the VW model range. We suggest that you try the new V6 TDi Turbo-diesel. Its aim is to impress.
After a nine year absence the new convertible Golf has returned. VW is the leading manufacturer of convertibles in the world. In 1949 VW launched the first ‘cabriolet’ as the Beetle Cabriolet. It was a runaway success. It was followed by the Karmann Ghia (1955), Golf Cabriolet (1979), Golf Cab III (1993), Golf Cab IV (1998) and more recently the Eos (2007). Today we have the all new Beetle cab and the newest Golf Cabriolet.
The Golf Cabriolet features an electric folding soft –top roof (9 seconds start to finish), two-doors & four seats. The other great thing about the roof is that it does not take up the boot spaces like hard top roofs do. The Golf Cabriolet has a 250Ltr boot at all times. In a sneak peak it looks like a small Eos with a black fabric roof with the interior styling nearly identical.
After the recent Passat update, the all new Jetta and the Amarok, it seems there is still plenty to look at and look forward to in your local VW dealership!
Level 2, 9 Help Street