Thoughts on pricing

[Simon 3.2M]

After reading the various topics and for sale threads of late and the costs of cars with 100k on the clock as opposed to those with 70k and the impending inspections related to those miles, I was wondering how a car would be viewed having had the works done.

The example I will use is a 100k with history advertised for 10 - 11k. If the car was purchased and the relevant inspection 1 or 2 carried out and given some forum member "love" would the car be worth more or just have a better chance of selling? Again if, like my car, the bearing shells were done (a very subjective area I know) would that increase the value or just make it a better buy?

The reason I ask is that doing that work is circa 2k making it a 12 - 13k overall cost however, a seller wont sell their 100k M for 8 - 9k i'm sure. Using my reckoning most cars in this bracket are actually 12 - 13k cars which is in the territory of the 70k cars. Hopefully I've explained that correctly as I'm just interested in the thoughts of those more knowledgeable on the forum. Obviously add the extra for a coupe.

 

[Mike.]

I'd be inclined to say it increases desirability within the market, but any maintenance work and expenditure wouldn't necessarily increase potential sale price. I'd be surprised if you bought car X for £10k, spent £2k on maintenance and would sell it for £12k. Maybe £11k at a stretch to the right buyer, but it is still a £10k car in the market's eye...

Also it opens a whole can of worms of who did it, can you prove they did it, what parts have they used, did they do it to my standards as a buyer. It's a funny old world the used car market. I think with all the "future classic", "investment opportunity" and "only going up in value" comments thrown around, buyers seem to expect showroom fresh cars fully refreshed for bottom dollar used car pricing.

 

[Beerman]

I'd be inclined to say it increases desirability within the market, but any maintenance work and expenditure wouldn't necessarily increase potential sale price. I'd be surprised if you bought car X for £10k, spent £2k on maintenance and would sell it for £12k. Maybe £11k at a stretch to the right buyer, but it is still a £10k car in the market's eye...

Also it opens a whole can of worms of who did it, can you prove they did it, what parts have they used, did they do it to my standards as a buyer. It's a funny old world the used car market. I think with all the "future classic", "investment opportunity" and "only going up in value" comments thrown around, buyers seem to expect showroom fresh cars fully refreshed for bottom dollar used car pricing.

I agree with the maintenance v. valuation. It won't add any value to the car.

On the buyers expecting showroom fresh cars I'd say sellers are too often exaggerating cars to make them think that. It's not just the future classic comments etc, people do describe their car as excellent/mint condition. Rattle off how they are an enthusiast and the car has been lavished with maintenance, care and detailing products. Then that turns out not to be correct all too often.

People's perceptions of what is excellent condition at 10 years old differs hugely.

 

[Mike.]

I agree with the maintenance v. valuation. It won't add any value to the car.

On the buyers expecting showroom fresh cars I'd say sellers are too often exaggerating cars to make them think that. It's not just the future classic comments etc, people do describe their car as excellent/mint condition. Rattle off how they are an enthusiast and the car has been lavished with maintenance, care and detailing products. Then that turns out not to be correct all too often.

People's perceptions of what is excellent condition at 10 years old differs hugely.

Oh of course, condition is a very subjective matter.

I'd say for a 10-12 year old car; a few stone chips (but no dents), maybe light marks on the wheels (but no heavy kerb rash), light scuffing to the front splitter of a Z4 in particular, some wear marks to the seats concurrent with mileage etc... I think this would constitute good to excellent condition for the age of the car when compared against its peers. These are things that, in my mind would present an honest car that is a blank canvas for the next owner to pick and choose what they spend their money on. (I viewed a lot of Z4M Coupe last year, all of which had variations of Excellent/Mint Condition attached so understand where you are coming from!)

You on the other hand, may feel that those are unacceptable and the car should be unmarked if described as excellent condition.

I was sticking to the maintenance side of things of expectations that used car buyers have, i'll use the buyers guide "wishlist" that floats around this forum for the Z4m as an example, it's written as a "things to consider and look out for" which is great and very informative... but it seems to end up translating as "you need to negotiate this off the price or the work needs to be done for a car to sell" mentality

It's a used car at the end of the day, or is a seller expected to refresh the suspension, refresh the brakes, replace parts that are obviously not as good as new but equally are serviceable and not throwing up any issues.

A garage sure as hell won't do any of that, despite a common misconception that buying from a garage gets you a better car. They give it a once over, probably akin to a relaxed MOT and chuck a 3 month warranty on it with the cheapest provider they can find.

 

[Philjwb]

I would say having the bearing shells would increase the value a bit. I had a 986 boxster S and upgraded the IMS bearing (similar engine reliability concern) and I'm sure that increased the value of the car since it sold quickly for a good price..