If you're planning to buy a new car, you'll have to face the fact that, once the warranty has expired, the value is going to drop significantly when you put it on the market, unless it's a highly sought-after ultra-luxury model. Even executive-class saloons, like the Mercedes-Benz C-class and BMW 5 series, will plummet in value once the warranty has expired, which usually lasts three years in Hong Kong.
'Cars in Hong Kong are expensive, but once they are out of warranty, their value drops like a stone,' says Andrew Windebank, former chief executive of the Hong Kong Automobile Association (HKAA). 'They can lose half their value in 24 hours.
'It's the very high end of the luxury segment - Rolls-Royces, Bentleys, Lamborghinis and Ferraris - that best keep their value,' Windebank says.
Without a 'bluebook' of guidelines on car prices and values in Hong Kong, as there is in most major car markets, figures for ultra-luxury models are hard to come by.
But a browse through the web and newspaper ads found a second-hand 2007 Bentley Flying Spur going for HK$1.79 million, a 2007 Porsche 977 priced at HK$1.1 million and a 2003 Ferrari Maranello being sold for HK$890,000.
A rung down on the ladder, however, among the executive-class saloons, the price of a new BMW 7 series ranges from HK$1.07 million to HK$2.67 million, while a 2002 model is being sold for just HK$140,000, 'or nearest offer'. BMW's 5 series come at a starting price of just over HK$556,000, while an owner is trying to sell a 1998 model for a snip at HK$25,000.