GolfGTIforum.co.uk
Model specific boards => Golf mk7 => Topic started by: RM on 11 May 2020, 11:12
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I'm sure I'm not alone in feeling the pain of lockdown and the impact it's having on our life and finances. I hope everyone is keeping well?
I have a tough decision to make - I'm fortune enough to not be losing my job (for now at least) but I am taking a 20% pay cut for the foreseeable future. I am very lucky to be able to just above cover that one way or another, but I wonder if selling the Golf for something cheaper is wise, so the money can be used elsewhere?
Am I being unrealistic in thinking a 2017 MK7.5 GTi (non-PP) would fetch £16k+ on the used market?
If so, I could put £10k of that towards something not dull but not expensive to run (R56 Mini Cooper S I think) and find a better use for the balance.
Is it worth it though? Is the long-term value of the Golf and it's overall flexibility better to hold on to? I don't like head vs heart decisions (heart often wins).
Any thoughts would be hugely appreciated.
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I would hold on to it for now. Lockdown rules don't allow for viewing cars for sale, dealer forecourts are closed. You'll be limiting potential buyers and I'd suspect just end up with rude offers from chancers.
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I'm not sure that buying a R56 Cooper S will be cheaper to run.
Cheaper to buy maybe, but its an older car, with all the usual older car problems.
As has been said too, there probably is no way execute the sell or the buy at the moment either.
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Thanks, I appreciate this isn't an instant thing either way, but it's useful to get opinions ahead of any ability to do something about it!
The R56 Mini idea isn't perfect, but it's quite depressing when you start looking at what's available at that sort of price range. The choice isn't great if you want any sort of driving entertainment, without risky reliability and high service costs.
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Having owned 2x R56 minis in the past (a Factory JCW, and a JCW Cooper S), they are great but age has now caught up with them and they do really need to be bought with a good warranty, and you will be compromising massively on space (they are tiny!). A fJCW really is the pic of the bunch if you can find a good one, but I'm not sure I could recommend one over a Golf if you already have one.
Getting a good price for your car will be difficult because nobody knows what the market currently looks like. Plus you'll potentially be rolling into a car that could end up being a worse proposition for you due to having instant negative equity from the dealer mark-up and the depreciation curve.
It's understandable to start looking for 'cost cutting' when things look bad, but unless you have too, stick with what you have is MO. In 2011 I sold my automotive love (a 1M!) by panic selling when I thought I would be made redundant, but in the end I wasn't and to this day I massively regret it, not just financially!).
For the sake of £6k, it would be too risky for me. Factor in negative equity, cost to change etc etc in another car and realistically you are probably only going to be saving £3-4k, and that's if you get what you want for yours.
:)
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^ Wise words above. Between the dealer expectations of margin on yours and markup on the Mini, you'll be getting rid of an £18k sticker price car for £15k to swap for a £10k sticker price car worth £8k privately. Keep the Golf.
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Wise words indeed. The practicality bit doesn’t bother me, but the financial risk doesn’t stack up when you spell it out like that. This is supposed to be a sensible move at the end of the day.
It’ll be interesting to see what happens with used prices generally once some sort of normality resumes. I’ve no choice but to sit tight for now, but it’s good to hear other people’s views and experiences.
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The only way to release meaningful money out of the car is to swap for a £2000 sensible car and be prepared to accept that it will have its faults.
I'm sure there are other ways you can cut back to save money rather than realising a loss on your car. I've not spent a bean in weeks, on anything other than food and utilities. I've not been earning much, but I'm actually better off.
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The only way to release meaningful money out of the car is to swap for a £2000 sensible car and be prepared to accept that it will have its faults.
I'm sure there are other ways you can cut back to save money rather than realising a loss on your car. I've not spent a bean in weeks, on anything other than food and utilities. I've not been earning much, but I'm actually better off.
The biggest question is is whether the OP actually owns the car outright.or is PCPing. If PCPing, we're talking about possibly a bit of equity in the PCP which will only be realised if trading in. If owned outright, there's a lot more money at play.
If you normally have disposable income for trips, pubs and restaurants, and are working from home or are furloughed with seriously reduced fuelling costs, it's hard to spend that money right now. I ended up paying my 2020/2021 Council tax demand in one lump as soon as it dropped through the letterbox. I've saved in not going out and doing a bit of business on ebay.
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Yes it’s a worrying time. We have 2 cars - a Volvo XC60 2019 model and my GTI 2016. Both paid for. Trouble is with our trip to South Africa and now lockdown and both being “Shielded”
I doubt that both cars together have done more than 50 miles this year. It has made us think seriously about having 2 cars. So am contemplating letting the Golf go. Still not sure as I do love it but the current mileage and the future unknown is playing on my mind. So I do relate to how you’re feeling.
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The only way to release meaningful money out of the car is to swap for a £2000 sensible car and be prepared to accept that it will have its faults.
I'm sure there are other ways you can cut back to save money rather than realising a loss on your car. I've not spent a bean in weeks, on anything other than food and utilities. I've not been earning much, but I'm actually better off.
The biggest question is is whether the OP actually owns the car outright.or is PCPing. If PCPing, we're talking about possibly a bit of equity in the PCP which will only be realised if trading in. If owned outright, there's a lot more money at play.
If you normally have disposable income for trips, pubs and restaurants, and are working from home or are furloughed with seriously reduced fuelling costs, it's hard to spend that money right now. I ended up paying my 2020/2021 Council tax demand in one lump as soon as it dropped through the letterbox. I've saved in not going out and doing a bit of business on ebay.
It's owned rather than on PCP or similar, which was part of the logic - the difference in money could be used to offset other payments or a drop in income.
Yes it’s a worrying time. We have 2 cars - a Volvo XC60 2019 model and my GTI 2016. Both paid for. Trouble is with our trip to South Africa and now lockdown and both being “Shielded”
I doubt that both cars together have done more than 50 miles this year. It has made us think seriously about having 2 cars. So am contemplating letting the Golf go. Still not sure as I do love it but the current mileage and the future unknown is playing on my mind. So I do relate to how you’re feeling.
It's not easy is it (head vs heart). I can't help but re-evaluate what's important and what's a luxury, which it sounds like you're doing too. For me, this period has made me realise that having a bit more spare capacity financially would make life more comfortable, as I doubt this is the last event like this I'll see in my lifetime.
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^ I suppose considerations made will depend on how well you think you'll be financially when things get back to normal. As you own the car outright, if you want to be more cautious with your finances in the future, just keep this car longer than you maybe otherwise would've.
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Years ago I thought I was going to be made redundant and back traded an absolutely immaculate 3.0S Capri with tennis net Recaro's and all the extras for a mini.....
I wasn't made redundant in the end but the joy of that lasted a year or two.....
But nearly 40 years later I still bitterly regret "giving away" that beautiful Capri.....
If you still like your car, keep hold of it.....!
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My view:
1. Used prices will decline this year, if you choose to sell, go early versus later
2. I agree with the cost of change arguments above, you'll need to choose something much cheaper
3. But old cars can/will cost more to run
You could be strict, set a budget and look for something that has everything fixed
https://www.pistonheads.com/classifieds/used-cars/volkswagen/golf-gti-mk5-mk6/volkswagen-golf-mk5-gti-------------------2008/10537952
(only an example, i guess you could get that for £3500 and he claims all the major stuff has been addressed, rust, new AC etc)
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I had a Mk5 Golf many moons ago and it was a hateful thing that went back to VW six times in the first six months for different faults... I'd rather take the bus :grin:
The cost of maintenance and running costs is on my mind in all of this. On one hand having a car like the GTi is a luxury not a necessity, but the flip-side is it's (*touch-wood*) pretty solid and dependable so costs are predictable.
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The cost of maintenance and running costs is on my mind in all of this. On one hand having a car like the GTi is a luxury not a necessity, but the flip-side is it's (*touch-wood*) pretty solid and dependable so costs are predictable.
Let me correct that for you:
On one hand having a car like the GTi new car is a luxury not a necessity, but the flip-side is it's (*touch-wood*) pretty solid and dependable so costs are predictable because its new, not broken and with a 3 year warranty.
Thats the thing, that is why i have a new car and not a broken down heap. Reliability and predictable costs. You pay for both though. Have less of either and you could be quids in...or stuck on the side of the motorway in the sh1tting rain and looking at a £3000 garage bill.
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I had a Mk5 Golf many moons ago and it was a hateful thing that went back to VW six times in the first six months for different faults... I'd rather take the bus :grin:
The cost of maintenance and running costs is on my mind in all of this. On one hand having a car like the GTi is a luxury not a necessity, but the flip-side is it's (*touch-wood*) pretty solid and dependable so costs are predictable.
Understood, then I would be looking for a Toyota Yaris at the same price.
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we have 3 cars mk7 gti a mk6 tdi and...
a C1 from on a 60 plate and its by far the most used car its cheap fun and think if I parted with my GTi be quite happy with it , I know quite a few people that have nicer cars and a run arounds for a couple of K if that
nicer car can be a tie in more than one way
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Most of the genuinely proper rich people I know drive old bangers.
I guess that's how you get to sit on a pile of money - don't waste it on cars :grin:
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Most of the genuinely proper rich people I know drive old bangers.
I guess that's how you get to sit on a pile of money - don't waste it on cars :grin:
This is true. I do a lot of work for the landed gentry. Country estates get handed down through the generations and they work with what they have (with a little help from their land agents and me) to keep the estates profitable and in good order to pass on to the next generation. Very rarely do they have any interest at all in cars. A new Discovery may get bought about once every 20 years, but that's about it.
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I had a Mk5 Golf many moons ago and it was a hateful thing that went back to VW six times in the first six months for different faults... I'd rather take the bus :grin:
The cost of maintenance and running costs is on my mind in all of this. On one hand having a car like the GTi is a luxury not a necessity, but the flip-side is it's (*touch-wood*) pretty solid and dependable so costs are predictable.
Understood, then I would be looking for a Toyota Yaris at the same price.
I did think about options like that, just a little, sensible, cheap to run car that isn't likely to cause me hassle. It's a step too far for me and would cost me more as I'd inevitably get frustrated with it and want to trade it in again.
Keeping the Golf feels the most likely option at the moment, at least until used prices become a bit clearer as the market picks back up. I am still trying to think of cars that aren't hugely risky, but aren't dull as dishwater either though.