To sell or not to sell - that is the question

[2007GTI]

Please bare with me, while I get this off my chest....

I've been keeping my eye on used MK5 GTI prices and am thinking of selling mine before it depreciates any further.  I brought new, for the first time, and am cringing at the depreciation.

So my questions are:

Is it a good time to sell?

I have that horrible feeling with the credit crunch that the used prices will crash.
However if you believe some people, used prices are creeping up.  Especially with less people buying new ones.

http://www.honestjohn.co.uk/news/item.htm?id=5682

my car is 2.5 years old, so maybe selling within warranty is good idea?

Then the question is, what to buy if I sell, as I love the GTI. Should hold onto GTI until it falls so low I don't care, sod the depreciation, life is too short etc etc.

Sorry for the rambling, perhaps other people are thinking the same thing as I am?

Your thoughts please...   

[Exonian]

How would you be planning to sell the car? If privately you would either struggle to sell or get very low offers (people thinking it's a buyers market). If P/Xing you would get derisory offers which, considering you say you like the car, would be rather pointless unless you get something that you would like even more such as something with a massive engine that a dealer is having trouble shifting because that sort of thing has gone out of fashion at the moment.
If you really like the GTI then hang onto it. The depreciation will level out eventually but also keep in mind that everything else is depreciating likewise so it's all relative (including your house!). I think the only thing you could do that may make a little bit of financial sense under the circumstances would be to chop it in against a massively discounted brand new GTI that a dealer can't shift before the warranty runs out on yours.

Hard to believe now that a couple of years ago the GTIs almost didn't depreciate at all!!! 

[DJGTi]

I'd agree that the only reason you should sell up is to get something newer/better that is being heavily discounted.

Unless you desperately need the money, I'd hang on to it and ride the storm. Some are saying that now is the time to buy a cheap to run small car to save money, but realistically, how much pleasure will you get driving around in a Kia diesel or the like for the sake of a few quid a week?

[Teutonic_Tamer]

Trouble is, car depreciation has always been 'relative' - meaning that all other cars will depreciate at the same rate.  So unless you are selling up, and using the cash to emigrate, then it is best just to keep what you have got.


Or is your mrs is up the duff with eight buns in the oven or sommat! 

[Egbutt Wash]

You will regret it for ever if you sell and buy a lesser car.
The Mk5 GTI DSG is just about the best car in the world.
Keep it as long as you can.  That way you laugh in the face of depreciation and have one of the few classless cars, respected by all.

[dubcruiser]

And next time don't buy a brand new car as depreciation is always going to be worse than if you buy an ex demo car.
As said I would keep hold of your GTi because everything and everyone is in the same boat.

[ub7rm]

As has been said its not a good time to sell, I'm a bit gutted that I could buy a 2 year old car or younger even for the same money I paid for my 3 year old 6 months ago.  On the other hand I wouldn't have gotten the same trade in.  Swings and roundabouts.

With a bit of luck this recession wont last too long  and when the recovery starts a lot of people who were holding off buying a newer car will be looking again so there might be a bit of an improvement or at least values won't fall much lower.  You're GTI has depreciated a lot less than other cars if its of any consolation!  Just like buying shares don't buy at the peak of the market and sell at the bottom!

[KentBladeboy]

Sorry to go against some comments on here, but its easy to sell the right car, at the right price. Mine went in under 36 hours this week, several buyers were bidding on it. It made good money, you just have to have a good spec, and bullet proof history to get a decent price.
Prices are still in freefall, and will until the nearly new market of cars starts to dry up, that will not happen for some months yet, as all manufacturers were/are still pumping out cars with no buyers for, only now are they starting the shutdowns. They then punt them out through the franchised networks, at low prices, and that further depresses used residuals.
So choices are simple, if you are only selling becuase you think you car has dropped shedloads, keep it, its relative.
If you are unlucky enough to be in a position where you cannot meet your finance payments or other monetary issues, then you will get raped, in relation to what you think your car is worth.
If you are selling to trade up, then great opportunities exist to pick up some top motors, nearly new at low prices, but no matter how cheap they seem, they will depreicate too.
When you but mass produced tin boxes, as we all do, then there are very few cars, that hold any money.

[2007GTI]

thanks for all your replies.

I know I shouldn't of brought new, and I wont again.

I don't HAVE to sell.

Its not leased.

Thank you for all the info and opinions.

 

[Exonian]

Buying new a couple of years ago would have made a whole heap of sense, as I said above GTIs didn't really depreciate for quite some time as there was a healthy waiting list for new ones. Not a good idea to buy a brand new car when the model is coming towards the end of it's life though. Swings and roundabouts.