Going through Olx and Facebook marketplaces, I have seen a lot of second hand products which are way too expensive and not at all marked according to depreciation rates. 10 year old well driven cars are selling at 50-60% of their original price, Flats are supposed to depreciate but do not (even the old ones). Any thoughts about it?
The issue is in the second hand market, there can be no standard price.
It is a supply constrained market hence pricing power lies with the seller
But why is there no standard price if I may ask. I don't have a lot of expertise in the subject but places like the UK have pretty standard deals even for second hand markets. Shouldn't products like cars and phones have a standard resale value since they are the most traded and the specs are easily verifiable?
I think they've been able to do this with phones (cashify and other buyback sites have largely standardized it) but I guess with cars and furniture it can get quite subjective - usage, quality of all parts, how well it's been maintained
Plus some owners could invest in some refurbishment to get a better value while others don't
Curious to know how it's been standardized in the UK - I would assume it's only when the brand itself is servicing the second hand market when there is standardization?
Most people are dumb and do not understand depreciation and think their stuff should fetch them a higher price
Any way you think this can be improved without introducing the middleman who gobbles up the margins?
Used car online classifieds are hijacked by dealers
As a seller you post an advert they'll lowball you to the limit, out of frustration you'll end up seller as fast as possible.
Now as buyer you'll only see out of price adverts, because regular priced cars are already gobbled by dealers, only those struck at +20% than market individual ads or the adverts by dealers.
Is there anyway to improve this situation?
If depends what you value more, Convenience? Mental torture? Physical exhaustion? You'll find suitable solution according to the need.
People will do what they want. Focus on finding value, do your own research, if you're lucky you'll find some reasonable seller. It's as simple as that.
Sure, I understand free market but the second hand market is sort of wild west :/
Yes, but that gives you opportunities as well. If life gives you lemons, make lemon juice. If the market was all formalised, then good opportunities wouldn't exist.
My approach.
I start looking out months before. Being time sensitive on these forces you to pay up. For cars, one of my friends hired and paid a Mechanic 500 per visit and used to get every lead checked. Plus told him that the first year service should be free.
I bought a bike, fridge and washing machine 2nd had recently. During each visit, I made it apparent that I am not in a rush.