Does a Third-Hand Transfer Car Depreciate?
2 Answers
Transferring a third-hand car does result in depreciation. Below are relevant details about the transfer process: 1. In addition to depreciation, there are insurance issues with car transfers. After a car is transferred, insurance premiums may increase. Most insurance companies do not offer discounts for the first year of insurance after a transfer, and the price difference can be significant. 2. During the transfer, a valuation is conducted, which incurs certain taxes and fees. Re-registering the car also requires additional costs. 3. The process is relatively cumbersome, such as needing to take new photos of the car, re-registering the vehicle, and queuing to complete the transfer procedures.
I've gone through the process of buying and selling cars several times, and I've noticed that a car with three ownership transfers definitely depreciates more. Mainly because it has two more previous owners, and people worry about poor maintenance or hidden issues. Looking at the market, for the same model, a first-hand car might sell for 100,000, while a third-hand one might only be worth 70,000-80,000, a difference of about 20%. This depreciation isn't just due to the car's age but because more ownership records make buyers suspect hidden problems and push the price down. I once sold an older third-hand car that was in decent condition, but buyers kept asking all sorts of questions, dragging the sale out for months and eventually settling for a lower price. My advice when buying a third-hand car is to carefully check the maintenance records and spend a little money on an inspection to prove the car's good condition—it might help resist some depreciation. Remember, car depreciation is natural, but the number of ownership transfers speeds it up.
