Possible switch to a GTI

[ffrank]

Hey all - some of the recent threads and a change in my mileage have got me thinking, now could be a good time to take advantage of the good deals on a GTI.

I changed jobs in May and went from 2000 miles a month to maybe 500 - if that.

I still love my GTD but I'm getting concious of a very noticeable increase in DPF regen's (normally with the fan going when I stop due to lacking frequent longer journeys), and with my new mileage a petrol would obviously be ideal.

I also do rather fancy a GTI, and possibly a swap to DSG from manual (thanks in part to the go kart fun in my wife's DSG Polo).

Although the current discounts are great, and buying on PCP the interest and VW loyalty bonus look great - I'm not sure what I could expect to P/X my car for.

I've been in touch with the local dealership I bought the car from (I trust them and they gave me 11% or so discount originally), and they've told me that in March my car will be valued at.....

£16250

This also included the loyalty bonus, so in effect the car valuation in March, for a 2 year car, is £15250.

My car is a 14 plate Night Blue GTD, with 20,500 miles and pretty decent spec:
Panoramic sunroof, Adaptive chassis, Dynaudio, Winter Pack, Navigation, Reverse Camera, Rear Airbags, Keyless, 3 year servicing and 4 year warranty (not sure if those transfer) [edit - and sport and sound pack!]

The reason I was expecting a better part-ex is my 4 year GFV is £12480, which is only £2770 less than the above 2 year price. 

Am I misunderstanding the GFV? What happens at the end of my 4 years, can VW offer me a part ex offer lower than my GFV? In that case I will be negative equity?? I know you can hand the car back to the finance company if it comes to it.

The dealer has advised I sell private, but I'm trying to understand my options and how they compare to my options at the end of the 4 years.

[matchboy]

That is a shocking loss in value    If it's any consolation, I lost 11K on my R in 13 months (based on invoice price vs part ex value, so technically I didn't actually lose that much) - but unfortunately that's the market at the moment.  So unless you're desperate to change to a GTI, and are prepared to lose that much, I'd stick with your GTD.  I am seriously shocked at the part ex figure they're giving you though, as your GTD is extremly well specced.

[ffrank]

Thanks Matchboy, it's a little bewildering and that's a pretty horrendous year one on the R price too!

I'm definitely not prepared to take a big hit, if anything I was expecting to perhaps drop a few options on a GTI and end up near enough break even in terms of requiring additional deposit/adjusting monthlies.

[p3asa]

Hi Dan,

That's a poor trade in value. The GFV figure is the guaranteed price that you owe to buy the car outright. It is also the guaranteed price they will offer you for your car so in effect you are handing it back and walking away if that's all they give you.
However the PCP is set up so come the end of its term you should have some equity in your car. I'm sure both my PCP trade-ins have seen me get around £1500 in equity so don't worry about being in negative equity.

I would try elsewhere for a trade in price.

The loyalty bonus coupled with the dealer contribution and going through a broker and selling your car privately might be better for you.
I'm in the middle of getting quotes for a GTI for my wife as its too good to let slip by.
With the above, I can get a new GTI with some extras for £21,956 which is an absolute steal.

In saying the above though, if you can get a brand new GTI for that price then it must effect the price of second hand cars.

[jlwhitworth1]

Hi Dan,

That's a poor trade in value. The GFV figure is the guaranteed price that you owe to buy the car outright. It is also the guaranteed price they will offer you for your car so in effect you are handing it back and walking away if that's all they give you.
However the PCP is set up so come the end of its term you should have some equity in your car. I'm sure both my PCP trade-ins have seen me get around £1500 in equity so don't worry about being in negative equity.

I would try elsewhere for a trade in price.

The loyalty bonus coupled with the dealer contribution and going through a broker and selling your car privately might be better for you.
I'm in the middle of getting quotes for a GTI for my wife as its too good to let slip by.
With the above, I can get a new GTI with some extras for £21,956 which is an absolute steal.

In saying the above though, if you can get a brand new GTI for that price then it must effect the price of second hand cars.

What spec is this GTI and where have you got the price from? They are a steal at the minute, but like you said, the GMFV does seem to have also taken a hit

[ffrank]

Hi Dan,

That's a poor trade in value. The GFV figure is the guaranteed price that you owe to buy the car outright. It is also the guaranteed price they will offer you for your car so in effect you are handing it back and walking away if that's all they give you.
However the PCP is set up so come the end of its term you should have some equity in your car. I'm sure both my PCP trade-ins have seen me get around £1500 in equity so don't worry about being in negative equity.

I would try elsewhere for a trade in price.

The loyalty bonus coupled with the dealer contribution and going through a broker and selling your car privately might be better for you.
I'm in the middle of getting quotes for a GTI for my wife as its too good to let slip by.
With the above, I can get a new GTI with some extras for £21,956 which is an absolute steal.

In saying the above though, if you can get a brand new GTI for that price then it must effect the price of second hand cars.

Thanks Stevie, that really is a great price on a GTI isn't it - which makes it worth having a think about anyway!!

A number of my options are now included as standard (Nav and winter pack), so I could definitely bring my monthly payment down whilst getting a new car (and a more suitable car for my driving now). Hmm, might do some more calcs later on DTD and the VW calc.

Do you (or anyone) have experience selling a car like this privately? I've only ever sold cheap n cheerful motors on autotrader!

[Exonian]

I've just run a CAP valuation on your car ffrank and although I don't have the full details and am assuming manual trans then yes, it books at between £16,500 and £17,700 at top book price right now.
What a dealer actually offers you will depend on what they think they can sell it on for in a jittery market at a quiet time of year.

[monkeyhanger]

ffrank: I'd stick with the GTD for that money, get a DTUK box if you haven't already got one, get some decent tyres (if you have Bridgestones) and enjoy a car quicker than a stock GTI everywhere but off the line. Keep it for the 4 years and sell privately for £12-13k.

Alternatively i'd try another dealer. For an effective £15250 p/x, i'd expect the dealership to be selling tidy 2 year old examples for £18300 to get their healthy 20% mark-up. Did you see how much they're going for there? Bet they're up for around £21k.

Seems that your dealer is being very cautious and greedy at the same time.

Give it 6 months and all this will have blown over - look at all the recalls Toyota had a while back, for major safety concerns too. Most people care more about how much that car is going to cost to run rather than how dirty its emissions are. We still have Vauxhall Zafiras bursting into flames yet Vauxhall still won't recall, and yet VW is in the spotlight more.

If things don't recover on the residuals front, i'll be loathed to buy VW again and get an Audi next time as the blinkered UK public hasn't realised that VW and Audi are the same company with the same range of engines and engine management software.

[J400uk]

Selling it privately only really works if you've got the capital to pay off the PCP first. But even then it would still be quite a limited market as most others people would want to be able to PX their old car or take finance!

It is definitely a good time to buy, just not such a good time to sell! Really comes down to whether you feel you're getting value from the extra expenditure.

[Mark V GTD]

I went through the same thing as ffrank over the last week or so. My car is similar and will be two years old next March.

But they are not really 'giving' anything....it simply boils down to an attempt to offset the poor residuals that are being quoted at the worst time of year.

I am almost resigned to taking my PCP to term and handing back (but even then there will be a mileage penalty which will force me to look for another disposal route).

I console myself that the GTD is still a great car and the spec I chose largely keeps it above the upgraded standard current spec
so it still feels 'new' - at least it does just after a good detail :-)

Whether I would buy on PCP again - I think probably not - the leasing deals are just too attractive and there is no disposal drama at the end to look forward to either.