What to pay for used car?

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PDonut

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Hey all

I'm looking to buy a certain used car registered 2012 with about 8000km on the clock - so to me it's close to new. Can anyone say what you would expect the price to be as a percentage of what a new one would cost right now? At the moment its roughly 90% of a new one. What would you realistically be happy paying? 85%? 75%?


Thoughts?
 
I'd need to know the make and model to judge whether I'd be willing to pay anything over R16.50 for it.
 
Not that I know the answer, but OP actually wanted to know what percentage of the new price you'd pay for a car with8k on the clock
 
YingYang said:
Not that I know the answer, but OP actually wanted to know what percentage of the new price you'd pay for a car with8k on the clock
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Some cars maintain value well, others don't. Some wouldn't be worth buying if you could get them at 70% of new price, some wouldn't be worth buying at all. There's no universal rule.
 
From looking around i know for example vw cars are pretty much sold at the exact price as a new one due to not being able to get a manufactures discount on the 2nd hand model if you go through approved used cars places. Whereas Hyundai and the sort do have a significant discount. So as said above no hard and fast rule. You need to let us know what model of car it is.
 
I got a current year Peugeot 207 1.6 Diesel with all the extras, 8000km. I paid R135000, retail value at the time was R202500.

So, it varies massively from dealer to dealer and manufacturer to manufacturer. If it was a current year BMW, I would thumbsuck about 80% of the retail price. If it is a French car, push for more discount.
 
Dealers usually work on a margin of between 7 and 10%.

When a new car hits the road, that must come off, as well as 14% for VAT.

A very rough guess is to drop the price by 20% p.a. but there is no hard and fast rule. As I have said in the past, some cars hold their value better than others.

A Forester for example, will hold between 70 and 80% of its original retail price after 2 years (independent study, and I cannot remember the link!). Other cars ( think Chinese) will lose 50 to 60% in the same period.
 
bromster said:
If it was a current year BMW, I would thumbsuck about 80% of the retail price. If it is a French car, push for more discount.
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Hey Bromster, our research showed that a BMW suffered the least depreciation of all the cars across the low spec and high spec ranges. The French cars do offer you great value but depreciate the most, with the exception of the Renault Sandero we did research on. If you take a look at the article/graphic, you will notice that it's actually cheaper to buy a NEW low spec Sandero than a 1 year old. Renault has had a huge reduction on the new price, probably to stimulate sales? That would make me pretty angry if I purchased a new Sandero last year and wanted a trade-in?
 
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