Why does the number of owners have an effect on value?
Discussion
As stated, it's somewhat dependent on the type of car.
I think small 2-seater roadsters are a prime example of cars that you should be less concerned about having a high number of previous owners.
Often bought as summer toys. Left to stand when the cold/ snow/ ice comes, so first car in the household to go. Lack of practicality/ usability can also see them driven less, again first car to go.
An MX5/ Z3 with 5+ owners is standard.
Similar logic can be applied to high-performance stuff like M3s for example.
For PHers like us who know to 'buy on condition', it's a good thing.
For cars that don't fall into the above categories, more care should be taken when high previous owners is a factor. Occasionally it'll be sold on regularly because it's a lemon, but a little care and attention to history and a thorough inspection will normally be enough to avoid this.
I think small 2-seater roadsters are a prime example of cars that you should be less concerned about having a high number of previous owners.
Often bought as summer toys. Left to stand when the cold/ snow/ ice comes, so first car in the household to go. Lack of practicality/ usability can also see them driven less, again first car to go.
An MX5/ Z3 with 5+ owners is standard.
Similar logic can be applied to high-performance stuff like M3s for example.
For PHers like us who know to 'buy on condition', it's a good thing.
For cars that don't fall into the above categories, more care should be taken when high previous owners is a factor. Occasionally it'll be sold on regularly because it's a lemon, but a little care and attention to history and a thorough inspection will normally be enough to avoid this.
However many owners a vehicle has had, I always look for how long the current owner has had it. If it's more than a couple of years then the possible lemon in it has stopped being a lemon.
We've had a 5 owner X5 for the last 3 years and it runs superbly. Costs have been tyres, service items and brake pipe renewal; it came from Aberdeen so salt air. Other than that, great.
The last change on the V5 before we bought it was done 2 weeks after the previous 1. Don't know why.
We've had a 5 owner X5 for the last 3 years and it runs superbly. Costs have been tyres, service items and brake pipe renewal; it came from Aberdeen so salt air. Other than that, great.
The last change on the V5 before we bought it was done 2 weeks after the previous 1. Don't know why.
Conscript said:
Each subsequent owner of a car will have paid less for it, and may in all probability, have treated it in line with how much they paid for it, rather than how much it cost new.
- If a 10 year old car only has one owner who bought it new for 50K, the likelihood is he will have treated it as an object he spent 50K on.
- If a 10 year old car is on it's 8th owner, who only bought it for 1K, it's likely that he will have treated it as a 1K car - ie, with not as much care.
It might also be an indicator of a car with problems, hence why it's been passed on so much.
Obviously these are not hard and fast rules, and the condition of the vehicle is obviously key - you yourself have experiences which buck the trend. But these are just useful things to consider when purchasing, which might give you an insight into the history.
This is my theory and it's why I prefer 1 owner cars. I might be wrong, I might miss out on some good cars, but generally I'm happy with this approach.- If a 10 year old car only has one owner who bought it new for 50K, the likelihood is he will have treated it as an object he spent 50K on.
- If a 10 year old car is on it's 8th owner, who only bought it for 1K, it's likely that he will have treated it as a 1K car - ie, with not as much care.
It might also be an indicator of a car with problems, hence why it's been passed on so much.
Obviously these are not hard and fast rules, and the condition of the vehicle is obviously key - you yourself have experiences which buck the trend. But these are just useful things to consider when purchasing, which might give you an insight into the history.
Edited by Conscript on Wednesday 20th May 14:22
Fox- said:
Conscript said:
Each subsequent owner of a car will have paid less for it, and may in all probability, have treated it in line with how much they paid for it, rather than how much it cost new.
- If a 10 year old car only has one owner who bought it new for 50K, the likelihood is he will have treated it as an object he spent 50K on.
- If a 10 year old car is on it's 8th owner, who only bought it for 1K, it's likely that he will have treated it as a 1K car - ie, with not as much care.
It might also be an indicator of a car with problems, hence why it's been passed on so much.
Obviously these are not hard and fast rules, and the condition of the vehicle is obviously key - you yourself have experiences which buck the trend. But these are just useful things to consider when purchasing, which might give you an insight into the history.
This is my theory and it's why I prefer 1 owner cars. I might be wrong, I might miss out on some good cars, but generally I'm happy with this approach.- If a 10 year old car only has one owner who bought it new for 50K, the likelihood is he will have treated it as an object he spent 50K on.
- If a 10 year old car is on it's 8th owner, who only bought it for 1K, it's likely that he will have treated it as a 1K car - ie, with not as much care.
It might also be an indicator of a car with problems, hence why it's been passed on so much.
Obviously these are not hard and fast rules, and the condition of the vehicle is obviously key - you yourself have experiences which buck the trend. But these are just useful things to consider when purchasing, which might give you an insight into the history.
Edited by Conscript on Wednesday 20th May 14:22
I bought a brand new Mitsubishi Evo VI Extreme from Ralliart which turned out to be a lemon. A few years later I bought a 4 owner 911, which also turned out to be a lemon. Later still I bought a 4 owner E63 AMG with only 20,000 on the clock. Bodywork and interior was immaculate. Odd, I thought, until I drove it and discovered the steering pulled badly to the left and MB said there was nothing they could do about it. Which I thought was rubbish. I bought it, got the camber corrected and it's been the best car I've owned, of many. Just go in with your eyes open and don't be naive - if something looks suspicious there's probably a reason there somewhere.
I think that 30 years ago the 2 things that would kill a car were high(ish) miles, age and many owners. This is down to the fact that back then old cars really could be nails (eg look at how bad a mid 70's Escort/Viva could rust). Today most people would have no issues buying a 10 year-old car (apart from the fact that everyone wants new 'shineyshiney'). As mentioned earlier sports cars do seem to have a higher turn-over of owners so that's something to bear in mind, I'd be more worried about a multi-owner people-carrier or 'vanilla' car since (in my mind) these types of cars are generally kept for the requisite 2/3 years minimum
Qubit said:
I find it pays to remember that generally speaking people dont sell cars that have nothing wrong with them. Sure sometimes folk just fancy a change, but invariably this is not the case.
So of all the tens of thousands of cars for sale, most have something wrong with them (assuming non wear an tear)? Not sure about that... Gassing Station | General Gassing | Top of Page | What's New | My Stuff