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Newbie saying hi

Discussion in 'Hong Kong' started by BTfd2e93, Jun 22, 2015.

  1. BTfd2e93

    BTfd2e93 Member

    Joined:
    Jun 22, 2015
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    Location:
    Hong Kong
    Hi Folks,

    Just dropping in to say hi. Getting more and more interested in getting a model S.

    However, its a bit of a mystery to me, regarding the buying process. I know Tesla HK use Kingsway to do trade-in arrangements. But are they fair?

    What if the price of the car I want to trade-in is approaching the value of the model s? will they consider a trade-in? Or will kingsway & tesla always be looking to low ball & rip off the trade-in, in order to make double whammy margins for both companies?

    Since there are no real tax savings in HK - im wondering how I can make this happen.

    I know that folks will be saying to sell privately - but then it becomes quite the hassle, as Im not keen on the idea of having tons of tire-kickers calling to do test drives.

    Any insight would be much appreciated!
     
  2. markwj

    markwj Moderator, Asia Pacific

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    From my understanding, the trade in is just a purchase of your old vehicle. The dealer purchases it, then stores it on his lot until he can sell it. Presumably if he sells for about the same price as a private sale, the margin is what it costs them to store your car for those days/weeks/months plus the dealer profit. That seems to vary, but from what I've seen it can be as much as 10% to 20% of the price of the car.

    Trade in is convenient - it can be done at the time of pickup of your new car, and things like insurance, plates, and autotoll tag can be swapped at that time. But, is it worth that 10% to 20% hit.

    The dealer is buying the car from you, so it is in their interests to make the trade in price as low as possible. The price offered should be competitive to other dealer offers.
     
  3. BTfd2e93

    BTfd2e93 Member

    Joined:
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    Thanks for the feedback Mark.

    The reason I ask this ... is because for Tesla - they are outsourcing the trade-in to a 3rd party (kingsway motors - whom run the lambo dealer in HK).
    with that in the equation - im just wondering how they would make it work, if my trade-in car is similar value to model S. In that scenario, kingsway would have taken title of a high value car - tesla hk would have lost an order allocation, to a customer where they made less money. seems not much money to be made between them. Thats why im thinking they wont make that process easy.

    Usually in other parts of the world - it works exactly as you say below, which is why its easy.

    But what im wondering is if anyone in HK specifically has any experience in trading-in their old car for a model S. and if that experience was good/reasonable.



     
  4. jsiu

    jsiu Member

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    I contacted Kingsway before with a view to selling my aged Mercedes. Kingsway is independent of Tesla and in fact two separated companies. I have a feeling that no matter how much Kingsway earn from you, Tesla simply has no interest. The introduction of Kingsway is simply a kind of customer services providing you a route to trade in your car. In my case, Kingsway only offered to tow my old Mercedes for scrapping i.e. worth nothing
     
  5. markwj

    markwj Moderator, Asia Pacific

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    Last time I did this, the salesman just helped me make the deal. The cashiers cheque was cut by the dealer actually buying the car.

    Think of it as two transactions:

    1] Kingsway buy your old car and give you a cheque.
    2] Tesla sell you a new car and you give them a cheque.

    I guess that if the Kingsway cheque is < Tesla's cheque, then Kingsway could cut the cheque to Tesla directly, and you pay the difference. But, I think you'd have to ask Tesla themselves how that works (as this may change).
     
  6. BTfd2e93

    BTfd2e93 Member

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    cheers to everyone's replies.

    i'll be calling the valuation team at kingsway to check on my car's value. not holding my breath ... hahaha ....
     
  7. markwj

    markwj Moderator, Asia Pacific

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    Please do let us know what you find out. I guess 88 cars will give a comparison (depends on how popular your current car is).
     
  8. 3fiftynine

    3fiftynine Member

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    Good luck! I held onto my 7 years Camry for more than a month, didn't bother to go through any agent/trader, as others have said disposing old one didn't affect me getting a Tesla.
     
  9. MingMan

    MingMan Member

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    Hong Kong
    What did you mean by no real tax savings, BT?

    I did sell one of my old (almost 10 years) Bluebird to an expat who came to work in HK by putting an ad on AdPost. Not sure if you know that test drive is not really required. Interested buyer can see the car but you can refuse letting them have a test drive as who knows who will take the blame if s/he hits someone or something.

    I have another experience of selling my E250 some 3 years ago to 2nd hand dealers by posting on webs such as 88 Car. Once I have done that, all 2nd hand dealers seemed to know that and "collusively (at least my feeling was)" set the price. I can tell you that the price that you can get from those 2nd hand dealers is at least 25% below that they can finally sell (not including any profit that they can make by giving financing). That represents their costs for re-touching, parking, advertisements, overhead, and profit. My suggestion is that you try to ask around those you know if they know someone who wants something like your old car and sell it a little bit cheaper than that they can get if they buy from 2nd hand dealers. At that price, you will still get something more than what a 2nd hand dealer will give you. If in vain, then try to know the price that you will get a similar car from 2nd hand dealers, make a 20% discount offer to 2nd hand dealers and sell it within a couple of days. Otherwise, you will end up getting even less.
     
  10. BTfd2e93

    BTfd2e93 Member

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    tax savings doesnt apply here. As back when i was in canada, i can reduce the taxable amount on the new car by the trade-in amount, before being taxed on the new car. Therefore its very popular to trade-in cars there, as it gives real savings.

    here, ive found its more about convenience than other aspects. Unfortunately, i can't just throw away my car :D ....

    i'll update the folks here once i get a response back from kingsway. I have a suspicion it will be a lowball price, as kingsway has a rep for doing that ..... hehehe ...
     
  11. lx3h

    lx3h Charged.hk TSLA Grp Rep

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    I know I'm killing the joy here but there are actually respective threads for the topics discussed above. Please try to do a search and post your questions under relevant threads, this will help new members keep track of the discussions as well as minimize the work of the moderator.
     
  12. BTfd2e93

    BTfd2e93 Member

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    Noted. Would you mind sharing the links to the posts that are related to trade-in for HK? I tried to search "Trade-in hong kong" and I couldnt find any relevant threads. the only tradein threads were US based. would be very interested to hear about experiences in the HK market.

     
  13. lx3h

    lx3h Charged.hk TSLA Grp Rep

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    For introduction, there is "Introduction (Hong Kong)" up as a sticky post. For trade-in, you may go to Resale Guarantee Resale value guaranty

    You may also suggest the moderator to update thread titles as the discussion progresses.
     
  14. BTfd2e93

    BTfd2e93 Member

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    ok .. so kingsway got back to me. Not very useful at all ... i gave them all my car info & the registration doc (pai bo). And they came back to me saying they wont be able to give me a quote for the car unless I gave them $1500 inspection fee. Which of course, they would waive if a deal was done. Lemme guess, the value would be $XX1,500 HKD. :D

    I asked for a ballpark estimation ... and they refused. just asked me to call their service mgr, to ask about the inspection itself.

    They also confirm the 2 operations/transactions were totally separate. So its not a trade-in at all. Its just kingsway buying your car wholesale.

    So, as expected, a bit of time wasted .... not surprised. So i guess the quest continues, by selling the car privately first.

    Thanks guys for your input.

     

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