I’m selling a car at the moment. It’s an unusual one – 1957 VW beetle with modifications. But it’s pretty cheap. It’s been sitting in the garage for 10 years unregistered.
Prospective buyers have done far more due diligence on this car than they have on the last 2 properties I have sold. One guy has come to look at it 3 times. It amazes me that people will spend more time thinking about and looking at a $3,000 car than they will a property.
Anybody hazard a guess on why?
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http://www.depreciator.com.auI always found it odd that you buy a car after a test drive and a couple of looks but with a home you look twice and then are expected to make an offer. I always thought it would make more sense to live there for a week and go around and meet the neighbours etc.
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Conditioning I think. We are conditioned that the process of buying a car requires several viewings and test drives. Buying a house requires a few visits and making an offer. Both can be emotional decisions.
Or is it because people assume property will always go up in value (cars usually won’t) so they don’t worry as much about a property purchase?
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http://www.depreciator.com.auI think it’s more the case that people are very familiar with and know how to assess cars. We use them every day and know many metrics by which to judge them. There is also little legislation and paperwork involved in buying a car so we feel more “expert”.
What all that means is we can poke and prod and make longer better decisions about cars than houses. We look at a house, shurg, and make an offer. The only think we know is that we want a house, not much else really. So fear and ignorance keep us from making the same depth of decision.
Does that mean we make better decisions buying a car? No way. Buying a car is almost a complete no-no in my book regardless. They are expensive, poluting and aren’t nearly as much fun as a motorbike [biggrin]
The assumed increase in value would certainly be a big factor in taking less time to consider. Once you buy a car you’ve lost money. Once you buy a house there is the glimmer of hope that you will sell for more. Most likely though stamp duty, agent fees, legal costs and other associated crud will eat up the first 3-4 years of profit.
Originally posted by depreciator:I’m selling a car at the moment. It’s an unusual one – 1957 VW beetle with modifications.
. It amazes me that people will spend more time thinking about and looking at a $3,000 car than they will a property.
Anybody hazard a guess on why?Guess he’s a hobbyist and people spend a LOT of time on their hobbies.
Been there, worked out the guy was only looking my car over as a comparo of his own. Was okay as a buyer came over bought it while he was still checking it out and drove it away.
depreciator- heya
Sounds like your buyer is a cheapskate. Guess that if a person buys a car and they get it out of the showroom and blows up, then it’s worse less than a docklands apartment.
I spend months checking out locations for property, before I really feel comfortable, so I can understand obsessive research- I think it’s healthy to do homework, and buying a lemon can be a risk in a car or a property.
Maybe he’s trying to annoy you until you reduce the price [biggrin]
PS Coffee must happen soon- I’m so disorganised, depreciator! [baaa]
kay henry
Hi Depreciator
I am also selling a car at the moment – white corolla, p/s a/c great first car, first to see will fall in love and buy! – just kidding!
I guess with a car there is the chance that you will spend your money only to find that the engine is cactus. Then you have blown all your money as it will cost just as much as you spent to buy the car to fix it up. There are horror stories I know when it comes to property but you rarely ever lose it all.
Of course we always need to remember why people buy things such as cars and houses – for emotional reasons. With a house you fall in love with the idea of living there, and all the crap the agent sells the house with – eg “The great entertainer” or “Resort living”. There is not as much romance involved when looking at a 15 year old car! It also take longer to try and find the right house, and people get sick and tired of looking and just want to buy something to end the suffering of house hunting…
Shosta
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