Why Do You Think People Sell Virtually New Cars So Quickly?

dlakers3peat on 08/03/2022 - 01:38
Last edited 08/03/2022 - 09:46 by 1 other user

Hi I love to scroll through carsales to look at cars I could never afford.

One the caught my eye is a 2021 BMW M5 CS.
https://www.carsales.com.au/cars/details/2021-bmw-m5-cs-f90-…

The car is for sale by a private seller and it has only done 45kms. The price of the car is just shy of $480k.

I always wonder why a person would buy such an expensive car only to sell it only after a very short time, especially one so expensive.

This is not the only example I have seen but probably the most expensive with the lowest amount of km's.

Automotive

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Comments

  • [Deactivated] on 08/03/2022 - 01:56
    +3

    So they can buy the 2022 version. People do it with phones too, buy a new one every year and sell the "old" one for most of what they paid for it last year. Maybe it's a tax write off for the rich or maybe they just want the latest technology and features.

    • Presence on 08/03/2022 - 07:03
      +2

      What sort of tax write off could possibly make this a good idea?

      • [Deactivated] on 08/03/2022 - 10:21

        A lot of people don't know what a tax writeoff actually means. It's not a way to make money.

        Also some people will use it as a business expense, so it's not really "their" money if they own their company.

        • eek on 08/03/2022 - 10:51
          +1

          It doesn't matter whether they own it or not. The idea is they try and push as many expenses as they can to the business entity to maximise their overall position. It doesn't matter that they down own the Aston Martin - they still get to enjoy driving it every day, and pay no FBT since it's always 100% for business use ;)

        • Presence on 08/03/2022 - 11:21

          Yeah it might make sense as a tax write off if he'd had the ability to drive it for a few years, sure. But this guy has only done 45km, I can't possibly see the tax benefit here?

        • [Deactivated] on 08/03/2022 - 13:05

          i know it's not a way to make money, but you can get something and pay a portion of it with money that would have just been going to taxes anyway, why not buy it and see the taxes go to something that directly benefits you? instead of feathering some politician or ex politicians already luxurious nest

          • [Deactivated] on 08/03/2022 - 14:47

            @[Deactivated]: instead of feathering some politician or ex politicians already luxurious nest

            I know it's easy to pick things like this, but taxes go to far more than politicians.

            • [Deactivated] on 08/03/2022 - 15:11

              @[Deactivated]: i'm aware, but it doesn't lessen my dislike for taxes.

              former politician pensions cost taxpayers 45 million dollars a year, as of 2015, i couldn't find a more recent number, but i can only assume it's higher.

              https://www.dailytelegraph.com.au/news/nsw/politicans-enjoyi…

              The Finance Department has revealed taxpayers fund the $44.6 million needed to pay for the Parliamentary Contributory Superannuation Act for those who have served in parliament.

  • steven6 on 08/03/2022 - 02:04
    +2

    According to redbook.com.au they sold for $305,900 brand new.

  • tonyjzx on 08/03/2022 - 02:26
    +4

    "2021 BMW M5 CS price and specs: 20 units set for Australia in mid-2021, $305,900 drive-away

    The 2021 BMW M5 CS has been officially unveiled, ahead of its Australian launch in limited numbers in mid-2021, priced from $305,900 drive-away."

    This is the reason.

    They were bought up by speculators. Ask yourself who would pay $480k (!!!) for a car that is $305k rrp.

    Its because they only allow in 20 units for this calendar year.

    • Jimothy Wongingtons on 08/03/2022 - 09:20

      They were bought up by speculators.

      Interesting..so basically get around having to pay CGT with traditional investments?

      • rektrading on 08/03/2022 - 10:01

        Cars aren't investment vehicles.

        People can flip as many cars as they want without paying CGT. However, there may be state laws that require people to register a dealer licence if they sell too many cars. This could flag the tax office.

  • Hybroid on 08/03/2022 - 02:34

    That's someone that setup a business scalping expensive cars to profit off them. As others have said it's a $300k car being resold for profit. Some super rich person abroad will eventually buy it and ship it home.

    • tonyjzx on 08/03/2022 - 02:52
      +2

      I would almost 110% guarantee that this is a relative of the principal at the dealer because I doubt anyone really wants to swallow this…

      Is this registration for a passenger vehicle? Yes
      Purchase price or value $305,000.00
      Result:
      Duty payable $14,350.00

      … as the first owner.

      The car is still being 'held' at the dealer and has delivery miles on it ('45km'). Someone will buy it…

      Also for a car that's $300k its nice that BMW still have crappy sliding calipers on the rear wheels.

  • life is suffering on 08/03/2022 - 05:28

    Fuel Economy Combined 10.6 L/100km

    That's low ?

    • Presence on 08/03/2022 - 07:03
      +1

      Figures for performance cars are always an absolute joke.

    • bhubb18 on 08/03/2022 - 09:28
      +2

      I mean does it look like an economy car?

    • pharkurnell on 08/03/2022 - 09:54
      +4

      People who buy an M5 dont give a shit about fuel economy

      and I'd be happy with 10/100 from 460kw donk that nobody would drive like nanna.

    • [Deactivated] on 08/03/2022 - 22:03

      I doubt it's correct with a 4.4 litre engine, probably closer to 16 L/100km

  • Nutrino on 08/03/2022 - 05:41
    +1

    Why do think?

  • Soluble on 08/03/2022 - 06:37
    +1

    'It is priced to sell quickly at $799,888.' at the bottom of the ad.

  • Hackney on 08/03/2022 - 06:44

    It’s all about making a profit in the current market.A lot of it is going on.

  • Euphemistic on 08/03/2022 - 07:01

    Rich people do 2 things.

    Speculate: they buy a rare/collectible/special car and hold it for a while hoping to sell at a profit without driving it. It’s tax free normally.
    Turn over: Sell the current vehicle to make space for new toys. Ie buy a new car that seems exciting, then get bored and want the next new exciting car. These would typically have more than dealer usage on them and often still before their first service.

    Then there’s the not so rich people selling popular ‘budget’ cars they got early and no one else can buy because of covid delays in new deliveries. Have a look at Suzuki Jimny.

    • Diji1 on 08/03/2022 - 11:46

      I don't know rich people doing this.

      You might think they were rich because they're driving a $300,000 car.

  • rektrading on 08/03/2022 - 07:35

    Smart people buy hard assets to a) make money on growth, b) use them as a hedge against inflation or c) both.

    The not so smart buy the latest iPhone or Galaxy at full price, get rekt by depreciation and cry about inflation.

  • Bid Sniper on 08/03/2022 - 07:36
    +1

    Its a phenomenon in the US, particularly with Porsche people flipping limited editions for a quick profit (eg GT2, GT3, RS)

    Not sure that will work here. I've seen with Toyota GR4 people reserving them and trying to flip them. GR4 was a unique case where initial lots were sold at $40K vs RRP $50K. However those sales fell flat on their asses when entire shipments were quickly listed on carsales and no interest. There are heaps still listed, Australians dont like scalpers.

    Cant see that car selling at all because will be a better one next year. Australian buyers can wait whereas US buyers will buy the floor model (not wait). Also thats lambo money

    • rektrading on 08/03/2022 - 07:43

      Every car that sank was a donation to existing owners.

      After Burning for Days, a Ship Carrying Thousands of Luxury Cars Sinks
      The ship, the Felicity Ace, was carrying about 4,000 vehicles, including Bentleys and Porsches, when it caught fire on Feb. 16. On Tuesday morning, it sank.
      https://www.nytimes.com/2022/03/01/world/europe/ship-sinks-l…

  • MS Paint on 08/03/2022 - 07:56

    It's called flipping.

    Some rich dude can't wait 12 months for a new car so they pay a premium to get one today to put on their Instagram to try and remain relevant.

    • bhubb18 on 08/03/2022 - 09:29
      +1

      I'm not familiar with this M5 model, but if its a super short run of a specific package / engine configuration etc, someone will pay big $ for it.

      • MS Paint on 08/03/2022 - 09:52

        I'm not a BMW fan either but I don't think it's a limited production but big delays and probably the last v8 non hybrid M5 to be made.

    • [Deactivated] on 08/03/2022 - 09:52
      +1

      to put on their Instagram to try and remain relevant

      That sounds like you're projecting.

  • [Deactivated] on 08/03/2022 - 08:22
    +1

    By brother-in-law once owned a luxury SUV for a total of 79 hours (10am Friday to 5pm Monday).

    He returned it to the dealer with 87km on the odometer as he decided he'd prefer LWB variant rather than the SWB model he purchased.

    He ate the 13% trade-in loss and just ordered a new car.

    So, to answer your question, some do it because they can afford to do simply pay-out their buyers' regret and it means they don't have to live with compromise.

  • apsilon on 08/03/2022 - 08:40

    Rich people. I think I've said before but I've worked for some of the richest people in the country and some of them, not all, are just another level. Conversely some were so tight with their money you'd think they were unemployed and would budget to the cent. There was one who used to keep a top spec Range Rover at every capital city airport in long term parking. It was used purely to go from the airport to their home in that city and back and they were all swapped over every year to the new model.

  • Cyphar on 08/03/2022 - 08:47

    I always wonder why a person would buy such an expensive car only to sell it only after a very short time, especially one so expensive.

    People like that have so much (profanity) Money that they don't care much for depreciation. They want to have the newest of everything so they can keep on keeping up with the Jones'

    • [Deactivated] on 08/03/2022 - 09:34
      +1

      so they can keep on keeping up with the Jones'

      …or they ARE the Joneses.

      They just want the best stuff/experiences life has to offer and can afford to buy them.

  • Seraphin7 on 08/03/2022 - 10:36

    There's a market out there for flipping these sorts of rare/hard to buy cars. The game is to have a contact within the car company that allows you to purchase these off the boat. They can then be flipped for profit to those that don't have these contacts but have enough money to just buy it.

    Word around the place is the going profit is around 20% … but it has to be a genuinely rare car, not one that is just in temporary short supply.

    • dlakers3peat on 08/03/2022 - 11:58

      Yes I think you are right. These people are just in the business of flipping cars. Here some more examples

      https://www.carsales.com.au/cars/details/2021-porsche-911-4s…
      https://www.carsales.com.au/cars/details/2021-toyota-landcru…
      https://www.carsales.com.au/cars/details/2021-subaru-wrx-sti…

      • Seraphin7 on 08/03/2022 - 12:50

        I was talking to a bloke just the other day who reckons that a mate of his is (amongst other things) doing exactly this with very high end vehicles. It's a long story, but through his connections, he gets the vehicles brand new that others simply can't get. He then effectively sells them to the highest bidder, often offshore.

        From what I could piece together, he's taking a 20% - 30% profit, effectively on the basis that he can his hands on something others can't.

        • rektrading on 08/03/2022 - 13:21

          he's taking a 20% - 30% profit,

          The guy is taking a risk and is rewarded for it. 👍 job.

          • Seraphin7 on 08/03/2022 - 13:25

            @rektrading: You'll never hear a protest for me on someone making a buck within the limits of the law.

            • rektrading on 08/03/2022 - 13:35

              @Seraphin7: How about P5 and GPU scalping? Or in 2020/21 with 🚽 tissue, face 👺 and 🙌 sanitizers?

              There were plenty of Karen on social media whining about that.

            • Euphemistic on 08/03/2022 - 13:51
              +1

              @Seraphin7: It’s ok because it’s 20-30% profit on luxury cars? I’m gonna guess you think it’s not ok for concert tickets or baby formula being sold OS.

              Where is the line?

              • Seraphin7 on 08/03/2022 - 14:07
                +1

                @Euphemistic:

                You'll never hear a protest for me on someone making a buck within the limits of the law.

                .

                Where is the line?

                The line is provided by legislation.

              • rektrading on 08/03/2022 - 14:32

                @Euphemistic: There is no line.

                Flipping unregistered goods are a free for all.

                • Euphemistic on 08/03/2022 - 15:14

                  @rektrading: Makes it hard to get bargains when people can grab stuff and sell to higher bidders. I guess it’s just stupid people with too much money that pay over the going rate for a product. Hope those taking advantage of average consumer items (like loo paper in a pandemic) get stuck with excess and lose $

                  • rektrading on 08/03/2022 - 15:45

                    @Euphemistic: There is no such thing as too much 🚽 tissue.

                    Life is full of death, taxes and 💩.

  • brad1-8tsi on 08/03/2022 - 13:49

    lots of people selling for a lot more than RRP due to vehicle shortage

  • [Deactivated] on 08/03/2022 - 22:05

    Boring looking car for the money

  • altomic on 09/03/2022 - 09:44

    that is like 200 1996 Camrys (with full petrol tanks)

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