Munich OMV...
- Thread starter kcl211
- Start date
jasonmaxima
Well-Known Member
Re: Munich OMV...
I believe it is bmw asia that is declaring all the omv and customs duties etc.... Munich, pml get these units (cars) from bmw asia hq and sells to the singapore public.
Hearsay some forum members who have booked f30 335 also complain omv is on the low side vs similar category cars...eg audi s4.
I believe it is bmw asia that is declaring all the omv and customs duties etc.... Munich, pml get these units (cars) from bmw asia hq and sells to the singapore public.
Hearsay some forum members who have booked f30 335 also complain omv is on the low side vs similar category cars...eg audi s4.
Re: Munich OMV...
Big question
My car from Munich has $89k OMV, do you think I will get more for it compared to a $79k OMV piece when I try to sell in on the second hand market?
Honestly, I don't think so. OMV is overrated.
Suckers for high OMV should all buy Aston Martins! They have one of the highest OMV to sales price ratio for any authorized dealer.
My Audi S5 from Premium Auto only had an OMV of $62k (average $64k), also sold it for a decent price.
My S2000 from Garage R had a super high OMV of $45k (average $39k), also sold for crap price.
My Boxster S had ultra high OMV of $96k (average $80k), also sold for so so price.
The key thing is that the OMV of your car is not too far from average.
Let's say all the OMV for Munich M3s are only $15,000. Do you think the second hand price for the M3s will drop to Nissan Latio price? I don't think so. People can complain about the OMV being low and try to offer $50,000 for it but is it realistic?
$104k OMV vs $79k OMV? Difference is $20k+. Over 10 years, that's only a difference of $1000+ of depreciation per year. That's for a car that will lose $30k-$40k per year for the first 5 years. Road tax already nearly $4k and insurance without NCD is $5k+. Petrol is about $5k per year. Tyres are at least $3k every two years or less. What's the big deal?
Big question
My car from Munich has $89k OMV, do you think I will get more for it compared to a $79k OMV piece when I try to sell in on the second hand market?
Honestly, I don't think so. OMV is overrated.
Suckers for high OMV should all buy Aston Martins! They have one of the highest OMV to sales price ratio for any authorized dealer.
My Audi S5 from Premium Auto only had an OMV of $62k (average $64k), also sold it for a decent price.
My S2000 from Garage R had a super high OMV of $45k (average $39k), also sold for crap price.
My Boxster S had ultra high OMV of $96k (average $80k), also sold for so so price.
The key thing is that the OMV of your car is not too far from average.
Let's say all the OMV for Munich M3s are only $15,000. Do you think the second hand price for the M3s will drop to Nissan Latio price? I don't think so. People can complain about the OMV being low and try to offer $50,000 for it but is it realistic?
$104k OMV vs $79k OMV? Difference is $20k+. Over 10 years, that's only a difference of $1000+ of depreciation per year. That's for a car that will lose $30k-$40k per year for the first 5 years. Road tax already nearly $4k and insurance without NCD is $5k+. Petrol is about $5k per year. Tyres are at least $3k every two years or less. What's the big deal?
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Re: Munich OMV...
104K OMV would cost roughly 236K to get it on the road before COE
79K OMV wouldcost roughly 180K to get it on the road before COE
The difference is really around 56K.
If I were the importer and I sell a car at $3XX regardless of a 79K-107K omv. I sure as hell wouldn't mind man.
It really is being smart with your money.
104K OMV would cost roughly 236K to get it on the road before COE
79K OMV wouldcost roughly 180K to get it on the road before COE
The difference is really around 56K.
If I were the importer and I sell a car at $3XX regardless of a 79K-107K omv. I sure as hell wouldn't mind man.
It really is being smart with your money.
Re: Munich OMV...
I also agree that from a buyer's side there is not alot difference but it is a huge difference for the sellers's payoff.
Even when you buy a house (even if it is a totally different asset) you would ask questions about how much the developer tender the land for and how much went into building the house(quality). Of course there are many other factors but you would think and ask these questions.
jaskin;786648 said:
I also agree that from a buyer's side there is not alot difference but it is a huge difference for the sellers's payoff.
Even when you buy a house (even if it is a totally different asset) you would ask questions about how much the developer tender the land for and how much went into building the house(quality). Of course there are many other factors but you would think and ask these questions.
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clar
Well-Known Member
Re: Munich OMV...
I feel that the resale value of any car is mostly tied to the new car price. Even if your car has high OMV, but the newer cars are cheaper due to lower OMV, when selling, u are still gonna get knocked cos people will point to the lower selling price of new cars. Personally, i don't put too much attention on the OMV. Knowing the OMV just tells me how much the dealer makes from the car...
I feel that the resale value of any car is mostly tied to the new car price. Even if your car has high OMV, but the newer cars are cheaper due to lower OMV, when selling, u are still gonna get knocked cos people will point to the lower selling price of new cars. Personally, i don't put too much attention on the OMV. Knowing the OMV just tells me how much the dealer makes from the car...
Re: Munich OMV...
Clar: shouldn't OMV determine the price point you enter the market e.g. buy the car? OMV is the core of how a vehicle is priced. no? Prior to COE being 82K of course.
oh yah... effectively if Munich's OMV is 79K, COE is effectively worth more than the car.
Clar: shouldn't OMV determine the price point you enter the market e.g. buy the car? OMV is the core of how a vehicle is priced. no? Prior to COE being 82K of course.
oh yah... effectively if Munich's OMV is 79K, COE is effectively worth more than the car.
clar
Well-Known Member
Re: Munich OMV...
If i am buying a new car, the OMV does not decide when i enter the market cos the buying price has little to do with it. Dealers like MA price the car based on its market perceived "prestige" value. If u look at the OMV of MA cars and their selling price, i really can't see any relation between the 2 cos the selling price is too far off from the OMV and all related duties.
jaskin;786739 said:
If i am buying a new car, the OMV does not decide when i enter the market cos the buying price has little to do with it. Dealers like MA price the car based on its market perceived "prestige" value. If u look at the OMV of MA cars and their selling price, i really can't see any relation between the 2 cos the selling price is too far off from the OMV and all related duties.
Re: Munich OMV...
some pple few thousand loose change, some pple few thousand is breaking pt, even for a 400k car. no right or wrong. maybe that few k is for children expense, if single can dont bother abt few K difference. taking steve jobs vs warren buffet, jobs drove a bens SL, buffet drove some boring american sedan... individual pref
if coe back to 20k or goes up to 150k, doesnt matter wat your omv is...
some pple few thousand loose change, some pple few thousand is breaking pt, even for a 400k car. no right or wrong. maybe that few k is for children expense, if single can dont bother abt few K difference. taking steve jobs vs warren buffet, jobs drove a bens SL, buffet drove some boring american sedan... individual pref
if coe back to 20k or goes up to 150k, doesnt matter wat your omv is...
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clar
Well-Known Member
Re: Munich OMV...
I have learnt to treat cars like expendables. I love them to bits, but they are pretty much worthless from the moment u collect the keys. It's an expensive indulgence in SG. When buying a car, i look at the buying price and ask myself if i can afford to pay, and if i can bear to loose that amount of money. End of story. Every cent paid is deemed to be gone with the wind. Of course in reality i don't loose it all cos i change cars quite frequently so there is always a carry over to the next car and i consider that a bonus. Yes, this is a delusional bubble i built around me to console myself that i am not excessive in my pursuit of motoring nirvana
I have learnt to treat cars like expendables. I love them to bits, but they are pretty much worthless from the moment u collect the keys. It's an expensive indulgence in SG. When buying a car, i look at the buying price and ask myself if i can afford to pay, and if i can bear to loose that amount of money. End of story. Every cent paid is deemed to be gone with the wind. Of course in reality i don't loose it all cos i change cars quite frequently so there is always a carry over to the next car and i consider that a bonus. Yes, this is a delusional bubble i built around me to console myself that i am not excessive in my pursuit of motoring nirvana
Re: Munich OMV...
evryone knows its depreciating asset but nobody want 2 overpay. But economics theory says that luxury items have sticky pricing & pricing power, vs say a teh tarik which cannot go above the mkt standard of 1-1.5 or else pple just buy other things. M5 can go up to 600k n someone will still buy its all a mental illusion for luxury items.
But coz we get 100% financing here, what used to be unattainable suddenyl becomes available to pple cld never dream of getting if financing were more restrictive, hence u get a mixed bag of buyers concerns
clar;786829 said:I have learnt to treat cars like expendables. I love them to bits, but they are pretty much worthless from the moment u collect the keys. It's an expensive indulgence in SG. When buying a car, i look at the buying price and ask myself if i can afford to pay, and if i can bear to loose that amount of money. End of story. Every cent paid is deemed to be gone with the wind. Of course in reality i don't loose it all cos i change cars quite frequently so there is always a carry over to the next car and i consider that a bonus. Yes, this is a delusional bubble i built around me to console myself that i am not excessive in my pursuit of motoring nirvana
evryone knows its depreciating asset but nobody want 2 overpay. But economics theory says that luxury items have sticky pricing & pricing power, vs say a teh tarik which cannot go above the mkt standard of 1-1.5 or else pple just buy other things. M5 can go up to 600k n someone will still buy its all a mental illusion for luxury items.
But coz we get 100% financing here, what used to be unattainable suddenyl becomes available to pple cld never dream of getting if financing were more restrictive, hence u get a mixed bag of buyers concerns
Re: Munich OMV...
My way of treating OMV:
(1) on an absolute basis per year - means nothing, especially if driving the ride to 10th year. Take $100K vs 70K, the difference is $1.5K per year on the depre number.
(2) on a relative basis based on same model, yes. When it comes to buying the car, it is only logical that cars with higher OMVs commands a premium. Else, given same prices (and all things being equal), no reason to buy the car with lower OMVs. So, back to the axioms used by PI car dealers - buy cheap, sell cheap. So if you see a few MA's M3 selling in the market and all share similar OMVs around $80K, your mind will come to acceptance that the $100K OMV cars might be 1-2 years older and perhaps not comparable.
(3) on a relative basis across other marques, it depends. Example - comparing an M3 vs a RS5 or a C63. If across marques within the same YOM, the relative valuations might play a part. However, the other important variable is secondary market demand.
My way of treating OMV:
(1) on an absolute basis per year - means nothing, especially if driving the ride to 10th year. Take $100K vs 70K, the difference is $1.5K per year on the depre number.
(2) on a relative basis based on same model, yes. When it comes to buying the car, it is only logical that cars with higher OMVs commands a premium. Else, given same prices (and all things being equal), no reason to buy the car with lower OMVs. So, back to the axioms used by PI car dealers - buy cheap, sell cheap. So if you see a few MA's M3 selling in the market and all share similar OMVs around $80K, your mind will come to acceptance that the $100K OMV cars might be 1-2 years older and perhaps not comparable.
(3) on a relative basis across other marques, it depends. Example - comparing an M3 vs a RS5 or a C63. If across marques within the same YOM, the relative valuations might play a part. However, the other important variable is secondary market demand.
