Author Topic: My GTI Value Vs a new R  (Read 11767 times)

Offline GTI7me

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My GTI Value Vs a new R
« on: 26 October 2014, 12:57 »
My GTI is just about to go in for its first 10000 miles service. After the long wait for the GTI and the hours of forum reading, I've just been enjoying the car and ignoring what other people have been paying etc.

Since booking in for a service I've started noticing the crazy cheap lease deals on the R, I'm talking £180 per month with £2000 up front. I'm currently paying £220 per month on PCP with a deposit of £8000. My first payment was 13 months ago.

To be honest i'm feeling a little like I've been mugged by VW here as initial calculations suggest I could have had an R for two years for what I've lost in depreciation in one year in the GTI.

So the question is, do I chop the GTI in now and go for a lease deal on the R, or even "upgrade" my PCP package and go for an R. Or do I stop worrying and keep the drivers seat warm in the GTI?

Thoughts people?

J


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Offline mikeok

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Re: My GTI Value Vs a new R
« Reply #1 on: 26 October 2014, 13:05 »
Iv faced a similar problem. Had my first service on my GTI ppand they gave me a R dsg for the day while service was being done.  I had asked for a drive as I had noticed the deals on the R also.  Anyway i ordered one the same day for next march. If you get a decent discount like 10% it makes good sense to swap. The R is a great drive.
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Offline GTI7me

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Re: My GTI Value Vs a new R
« Reply #2 on: 26 October 2014, 13:09 »
Iv faced a similar problem. Had my first service on my GTI ppand they gave me a R dsg for the day while service was being done.  I had asked for a drive as I had noticed the deals on the R also.  Anyway i ordered one the same day for next march. If you get a decent discount like 10% it makes good sense to swap. The R is a great drive.

Thanks for your input. What are your monthly payments like on the R compared to your existing GTI?

J


2013 GTI (GONE) - 2014 GTI Performance Pack - Manual, Discover Nav, 5 door, Park Assist

Offline dubber36

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Re: My GTI Value Vs a new R
« Reply #3 on: 26 October 2014, 14:42 »
The thing is, you have paid nearly £11,000 so far. It's quite a big chunk off making it properly yours. It's all very well these people driving round in an .:R for however much a month on these current lease deals, but when all their payments are made and the car goes back, they'll have no .:R any more...just memories.

Some people worry about depreciation as well, but it has to be remembered that you only realise that loss when you sell the car. Own the car, drive around in it and enjoy it, and depreciation isn't even a factor.
« Last Edit: 26 October 2014, 14:51 by dubber36 »
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Offline mk7gti

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Re: My GTI Value Vs a new R
« Reply #4 on: 26 October 2014, 14:55 »
Funny I was talking to my friend who works for VW finance in a main dealer last weekend. He was saying the R's are flying out of the show room at the minute and hardly anyone is buying a GTI due to the PCP deals on the R.

He was telling me internally they are worried as customers who have purchased an R will more than likely not have any equity in the car at the end of three years due to market being flooded with used R's. They are expecting R owners to only receive their GMFV which makes selling them a new car tougher. He did say GTI owners could be quids in due to higher residuals.  Its all swings and roundabouts go and enjoy the GTI its a great car :smiley:


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Offline monkeyhanger

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Re: My GTI Value Vs a new R
« Reply #5 on: 26 October 2014, 15:36 »
Funny I was talking to my friend who works for VW finance in a main dealer last weekend. He was saying the R's are flying out of the show room at the minute and hardly anyone is buying a GTI due to the PCP deals on the R.

He was telling me internally they are worried as customers who have purchased an R will more than likely not have any equity in the car at the end of three years due to market being flooded with used R's. They are expecting R owners to only receive their GMFV which makes selling them a new car tougher. He did say GTI owners could be quids in due to higher residuals.  Its all swings and roundabouts go and enjoy the GTI its a great car :smiley:

I doubt that GTIs will have better residuals as a result of plenty of people jumping into an R. They are likely to soften if R used prices are lower than anticipated. If the R is the better car in the view of the buying public than the GTI, why would GTI used values strengthen?

Supply and demand is exactly that, one affects the other. If more people want an R than want a GTI then that is going to do nothing positive for used prices. If there are plenty of used Rs out there in a few years time, on the back of the lease deals and the demand is there for them, used prices wont soften either. If the demand isn't there then they will fall some, but the R should always be worth proportionally more than a GTI. If the R used prices fell to anywhere near what a GTI's are right now then the GTI would have to fall from where it is now. The R is a different car to the GTI - 4WD traction can't be replicated with a tuning box or remap. You can tune a GTI up to near R levels, but do the same to an R and the gap will still be there.

There's a fair bit of scaremongering going on right now with the R, but personally I don't think VW can afford to let the GTI's GFV fall below 50%, and indirectly to let the R's fall much either. One of the main reasons the Golf does so well in sales in the face of cheaper competition is it's strong residuals. Take those away and people will be looking to save thousands by moving to other hot hatches that are cheaper to buy in the first place. Take away the "equity" (p/x value above GFV) at p/x time for those on PCP to keep you coming back to VW and there may be more sales lost - that equity is engineered to promote brand loyalty. VW engineers the financials better than the cars these days, I can't honestly believe they've dropped a bollo<k with R GFV.

They're both great cars, but the GFV fate of one affects the other very much.

I still believe it's enthusiasts that frequent forums such as this one who are buying the Rs, the general car buying public don't know what an R is. I believe VW hasn't got through as many Rs as it had planned to, and as a result we're seeing some of these lease deals to get the cars on the road and seen.
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Offline monkeyhanger

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Re: My GTI Value Vs a new R
« Reply #6 on: 26 October 2014, 15:37 »
My GTI is just about to go in for its first 10000 miles service. After the long wait for the GTI and the hours of forum reading, I've just been enjoying the car and ignoring what other people have been paying etc.

Since booking in for a service I've started noticing the crazy cheap lease deals on the R, I'm talking £180 per month with £2000 up front. I'm currently paying £220 per month on PCP with a deposit of £8000. My first payment was 13 months ago.

To be honest i'm feeling a little like I've been mugged by VW here as initial calculations suggest I could have had an R for two years for what I've lost in depreciation in one year in the GTI.

So the question is, do I chop the GTI in now and go for a lease deal on the R, or even "upgrade" my PCP package and go for an R. Or do I stop worrying and keep the drivers seat warm in the GTI?

Thoughts people?

J

You're looking at 18 month values for your p/x by the time you'll get your hands on a newly ordered car. Whether it makes financial sense to change depends on your options, which are very modest, excluding PP which depreciates like a model designation and not like an option. Your Nav and park assist might enhance GFV of a 5dr PP by £300 tops. I'd expect your car to be up on a used forecourt for about £22k next March, meaning that £18k p/x is acheivable as an "honest/realistic" value that won't undermine your ability to squeeze 12% discount out.

By £8k deposit, I take it to mean whatever you put down and whatever discount you got combined, so you PCP'd about £20k on a £28k RRP car? At the moment then, i'd say about £100 a month of your payments is interest and the other £120 a month is coming off your capital at this early stage, so in 18 months you'll owe about £17800k (£20k - (18x £120pm)). You're nigh on evens on what it's worth vs what you'll owe. I'd be chasing £500 equity + 12% discount on the new R if you're PCPing again.

Officially your GFV equivalent at 18 months will be lower than £18k because VW finance values the car at teh same value for 18 and 24 months which is ridiculous - they'll have an 18 month old example in their used forecourt for £1500 more than a 2 year old example.
« Last Edit: 26 October 2014, 15:52 by monkeyhanger »
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Offline kenny.c

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Re: My GTI Value Vs a new R
« Reply #7 on: 26 October 2014, 15:50 »
As others have said....either is a great car at the end of the day.

We looked into changing into a R but after taking into account the waiting time, the additional running costs and the fact I prefer several things the GTI offers over the R im sticking with the GTI. This debate will continue for ever more...If a person wants a R over a GTI they will justify it in their own head regardless what anyone says on the subject.

On a personnel note ive done the the Golf thing now...not that there is anything wrong with Golf's, im just not sure id buy another even if it was a R.

Now the proposed Polo R or a MQB based Scirocco.....they could be tempting.

Ken
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Offline monkeyhanger

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Re: My GTI Value Vs a new R
« Reply #8 on: 26 October 2014, 15:54 »

Now the proposed Polo R or a MQB based Scirocco.....they could be tempting.

Ken

You'll be waiting a while for an MQB Scirocco, they've only just done their mid-life facelift - another 3 or 4 wait there methinks, and the Polo R won't be MQB based either.
Whey ya bugger! It's finally arrived after an 8 month wait....
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Offline kenny.c

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Re: My GTI Value Vs a new R
« Reply #9 on: 26 October 2014, 15:56 »
I didnt say the Polo would be MQB based

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