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Old 29th December 2007, 12:50   #1
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Default Number of previous owners ?

Can someone please educate me how does number of previous owners impact he value of a car ? For example if the value of a car is fixed at 2 Lacs if the first owner is selling it, what should be the value of the same car if its the 3rd owner who is selling it ?
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Old 29th December 2007, 16:19   #2
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Good question, I hope somebody answers this.
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Old 29th December 2007, 16:58   #3
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Quote:
Originally Posted by Shashank.A View Post
Can someone please educate me how does number of previous owners impact he value of a car ? For example if the value of a car is fixed at 2 Lacs if the first owner is selling it, what should be the value of the same car if its the 3rd owner who is selling it ?
It will definitely not be the same for first owner and third owner selling the car. Frequent selling of any car is always a suspect on the car; potential buyers suspect that it could be a lemon.

As far as your example is concerned, there will be people who just don't want to buy a car sold by a third owner. I don't think there can be a definite price tag. All depends on how can you sell it and where you sell it.
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Old 29th December 2007, 17:04   #4
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shahsank, used car prices are largely generalised and may not be very objectively arrived at....

in general, more the number of previous owners, the lower you pay for the car in comparison to a similar ( in all other respects ) car from the same model year...

reason being
1) more hands having used the car and hence different driving styles
2) if there are more owners in a brief period - it may also mean there is some problem with the car
3) servicing may not have happened consistenly with changing hands....
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Old 29th December 2007, 18:58   #5
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first(single) owner car has the most value provided he has maintained it nicely.Being the first owner he is likely to have the instruction manual,original invoices, service history of the car.Also it is easy to check the antecedents of the vehicle like whether it has been misused,abused....
More than 2-3 owners better to stay away from it
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Old 29th December 2007, 23:50   #6
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Ah, but let me share an experience I had when scouting for a used car for a friend. In three cases out of six the car was technically a "first owner" vehicle, but it was because a subsequent buyer had not bothered to get it transferred in their name(s) probably because of the fear that the resale value would fall! I would rather choose a third-owner car with established antecedents, over a single owner car that doesn't have the original manual and service records.
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Old 1st January 2008, 12:58   #7
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hmmm..very logical Edsel...

Also I am looking at a Esteem VX, 97 model, Original Paint, non accidental, 50% tyres are ok, battery is hardly a year old, interior and exterior are as simple as it comes. I will be the 4th owner of the car, however since 2002 the car has been with people I know and trust. The car actually has hardly been used and have just completed 35000 km (I know shocking, but true, as it has not been used). It requires work on shockers, suspension, axle, steering assembly, alignment etc among some small other things..Engine is in excellent shape and is very quite.

I looking forward to offer 80K for it, now considering that would be the 4th owner and when I sell it it will go to 5th one, does this value sound reasonable enough ?
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Old 2nd January 2008, 14:38   #8
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Quote:
Originally Posted by Shashank
I am looking at a Esteem VX, 97 model, Original Paint, non accidental, 50% tyres are ok, battery is hardly a year old, interior and exterior are as simple as it comes. I will be the 4th owner of the car, however since 2002 the car has been with people I know and trust.
If you are a beginner or new driver and want to gain experience for a year before you invest big bucks on a new car, this would be a good option. If you are sure about some of the previous owners, it makes things easier.

Quote:
Originally Posted by Shashank
The car actually has hardly been used and have just completed 35000 km. It requires work on shockers, suspension, axle, steering assembly, alignment etc among some small other things..Engine is in excellent shape and is very quite.
That list of "small things" doesn't sound so small to me, so get the car evaluated by a trusted mechanic and get an estimate for the cost of repairs! Bear in mind that beyond a point, "hardly ever used" could have caused more damage to a vehicle than "used to the max".

Quote:
Originally Posted by Shashank
I looking forward to offer 80K for it, now considering that would be the 4th owner and when I sell it it will go to 5th one, does this value sound reasonable enough ?
I recently bought a 1997 third-owner Zen for 75K, so 80K for an Esteem of similar vintage sounds okay. However, considering the "little jobs" you need to do, and the number of previous owners, you should try to knock a little more from this price. Since you are in Delhi, prices of second-hand cars should be among the lowest in India.

Try to convince the owner that a low mileage of 35K (for a 1997 car) is not really an asset an average running of 70-80K would have kept the car in better nick. Also drive home the point that since Maruti has officially stopped production of the Esteem from the new year, there will soon be a steep fall in demand for the car. Try all tricks!
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Old 3rd January 2008, 00:10   #9
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Guys,
here's a question. We have a 2001 Honda Accord which we bought used in 2002 in good shape. We were the second owners however, we decided to shift the ownership from individual to Company and thus technically, we are also the third owners.
Will this affect the resale value in anyway. I mean would it affect the resale value more than if the car was registered as the second owner?
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Old 3rd January 2008, 00:23   #10
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Quote:
Originally Posted by lamborghini View Post
Guys,
here's a question. We have a 2001 Honda Accord which we bought used in 2002 in good shape. We were the second owners however, we decided to shift the ownership from individual to Company and thus technically, we are also the third owners.
Will this affect the resale value in anyway. I mean would it affect the resale value more than if the car was registered as the second owner?
Even after all it will still be 3rd owner. It would affect the price of the car.
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Old 3rd January 2008, 10:07   #11
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Thanks for replies Edsel, I took it to Maruti Naraina workshop, and they said more than Rs.35K. They also said that they cannot guarantee 100% perfection and asked me to take it to some local mechanic and spend few grands there..

The mechanic will look at it today and will open it up and tell me what needs to be changed, earlier he quoted a figure of Rs.10 for all the things I mentioned earlier..including the parts which I will get (Genuine only)..
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Old 3rd January 2008, 17:51   #12
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Default Cars condition and service history matters more than ownership

Quote:
Originally Posted by lamborghini View Post
Guys,
Will this affect the resale value in anyway. I mean would it affect the resale value more than if the car was registered as the second owner?
The major reason for loss of resale value with changing ownership is that
1.)the car will be subjected to various driving styles
2.) car might not be properly serviced by owners(as they themselve not aware of previous history)
3.)The buyer will him/herself fear much less resale value latter as the no. of transfers will increase by one number.
In that case, if you can proove that
1.)The car has been consistently driven by a single person(i mean even after changing to company , you are the one who has driven it.) Well, if it is chauffer driven one, then it has much worse effect on resale value.To proove this you can keep copies of registration certificate before and after transfership to show that it is YOU who owned the vehicle all the time.
2.) A comprehensive service history for past 4/5 years is a great selling point, as buyer can actually be convinced about the care taken for the vehicle.
3.)In this case, look for a buyer who keeps the vehicle for long time rather who sells it off soon . The former will look for a well maintained vehicle without worrying for resale, the latter however will look for a cheaper buying price so that he will not loose much later.

In my case,
I had seen many cars where technically it is first owner car but god knows whether the current person is its second or third owner , particularly when the present owner has no relationship with the registered owner. I simply walked away from all those deals(as you can deduce , in all cases there is no valid insurance as well).
The car i had bought is technically second owned,but it has been in hands of single person from beginning. Reason being that it was company leased at first and latter transferred on his name. I can believe that because i got all documents (owners manuals, original invoice,first two free service job sheets and then insurance and service history for past 4 years- service was done consistently at one A.S.S only.)
And finally i had no intentions of selling this again, so i did not mind paying a little more than market value for that.
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Old 23rd September 2014, 13:06   #13
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Default Re: Number of previous owners ?

Bumping up an old thread.This is in connection with Maruti True value.
Mods,please add it to the right section if this is not the right place.
One of my friend is the third owner of a 2010 Swift,which had run only 45,000 Km.The vehicle have been serviced from day one in Maruti Authorized Service center only.That means the entire service history is available in the Maruti Server and they can go through that. The vehicle is in good condition with everything up to date .

Coming back to my friends dilemma he was offered 2.5 L for this Swift ,in exchange for a new car,quoting it as third owner and they can't sell it with warranty .

Why should Maruti worry about the number of ownership if they want to do pre owned car business? As far as I know ,Truevalue was started to give value for Maruti cars and not the other way round. They have a 120 point checking system, for what ?Please note ,Maruti gives Warranty for vehicles ,which had run below 80,000 Km or less than 5 years old.Why should Maruti shy away just because of number of owners? The number of owners must not be considered ,if the vehicle have a good history in MASS.Or does it mean doing service in MASS is of no use ? What is the value addition in being devoted to MASS ? Isn't it time for Truevalue to mature and start giving warranty irrespective of number of owners?

This attitude of the dealer had made my friend think about going to other car manufacturers.
Want some opinion on this from Seniors .
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Old 23rd September 2014, 13:30   #14
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To be honest with you, 2.5 l for a 4 year + Swift is a decent bargain.
I assume it will be the Vxi/Zxi Variant and not the DDIS.

Consider that cars of other manufacturers of the same vintage will fetch far lower prices.

For. example, a Ford Fiesta(SEDAN) of 2010 retails at less than 2 lacs for the 1.6 Duratec.

Linea-2010(Petrol) would cost you close to 2.6-2.7 lacs. Considering they are far more expensive at the time of purchase, the depreciation is far more profound.

Manza 2010- Saffire- Close to 2 lacs or there abouts!!

Coming back to your question, it is all in perception.

If you ask me honestly, I will have reservations about purchasing a car that has been through three owners. Agreed that it has a service history but then every person would have a different driving style. Engine ages with the enthusiasts and I do not know what happened in the engine internals.

So, from the post, if I were you, I would have taken the bait and gone ahead with a new car booking.
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Old 24th September 2014, 10:26   #15
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Default Re: Number of previous owners ?

Quote:
Originally Posted by arnabchak View Post
To be honest with you, 2.5 l for a 4 year + Swift is a decent bargain.
I assume it will be the Vxi/Zxi Variant and not the DDIS.

Consider that cars of other manufacturers of the same vintage will fetch far lower prices.

For. example, a Ford Fiesta(SEDAN) of 2010 retails at less than 2 lacs for the 1.6 Duratec.

Linea-2010(Petrol) would cost you close to 2.6-2.7 lacs. Considering they are far more expensive at the time of purchase, the depreciation is far more profound.

Manza 2010- Saffire- Close to 2 lacs or there abouts!!

Coming back to your question, it is all in perception.

If you ask me honestly, I will have reservations about purchasing a car that has been through three owners. Agreed that it has a service history but then every person would have a different driving style. Engine ages with the enthusiasts and I do not know what happened in the engine internals.

So, from the post, if I were you, I would have taken the bait and gone ahead with a new car booking.
This whole story is happening in Bangalore where we get 2006 Swift VXi for 2.5 L.I am talking about a 2010 Swift .I think all the prices you mentioned are in Mumbai. Anyway my query was not about the pricing. I was questioning the system followed by maruti ,not to provide the warranty for Truevalue to the cars which have 3 owners in spite of the car running less than 50,000 Km. If you want to buy the same car with 2 owners its 3.7 to 4 L from Truevalue. Maruti having this un-touch-ability system is creating a scenario ,so that, they can sell new cars rather than improving old car sales. Truevalue is not doing what it was intend to do ,after all.
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