Number of previous owners ?

[Shashank.A]

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 ?

[deepaktpatil]

Good question, I hope somebody answers this.

[blue_pulsar]

Originally Posted by Shashank.A

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.

[narayan]

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....

[ajay99]

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

[Edsel Rulez!]

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.

[Shashank.A]

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 ?

[Edsel Rulez!]

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.

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".

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!

[lamborghini]

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?

[danlalan]

Originally Posted by lamborghini

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.

[Shashank.A]

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)..

[deetee]

Originally Posted by lamborghini

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.