Part ex values through the floor?

[monkeyhanger]

Reading all of these posts.VW seem to be going down the same road as Ford and Vauxhall.Big discounts etc.
Maybe not at the same level.But it is certainly going to rebound on the( once famous) resale values.

It seems to me that we might be heading towards BMW levels of GFV, in the region of 45% of RRP after 3 years, not quite as drastic as Ford/Vauxhall/French/Italian 30-40%.

If that happens, then fair enough if you can reap the discounts to still be at a respectable 50-55% of what you actually paid. If that doesn't happen in the future then chances are, i'll be moving to Audi (who seem to have come off relatively unscathed following the scandal).

For the good of future VW residuals, hopefully all these incentives and loyalty payments will be a shortlived thing. VW finance are taking some of the hit by offering lower PCP APR% to keep the monthlies the same despite lower GFVs.

[wakey]

Just to add in here

I bought my 5 door DSG Golf R pre reg. I paid £29k in September.

I own a few other cars, one being an ED30. I found that in the 4 months of owning the R that I preferred the drive of the ED30, plus with it being new, I didn't really want the R on the road getting battered with stonechips.

Anyway last week I decided to cut the R loose as the values seemed to be dropping like a stone and with all the dealers having glut of pre reg not shifting I decided to move it on. I have a car related business (not sales) but have a lot of contacts such as independent buyers for performance car sellers and also live next door to the DP of an Audi dealership.

The bottom line is that nearly new VW's like the R, GTI and GTD are not wanted in the trade at the moment as many VW dealerships bought a load of said cars and pre reg them all thinking theyd sell - then the VW scandal broke and VW sales are down. That's why when you look on PH, AT etc theres loads of them and there's all sorts of incentives, deals and the like to get people to buy.

Selling a £25-30k car privately is difficult as at that price point people want finance, PX and dealership backing. So this leaves potential buyers of said cars to be the trade themselves, and with them sruggling to shift existing stock, plus the discount they can buy them from VW, selling one back into the trade is impossible without taking a huge hit.

My trade contacts were getting bids for my car from buyers in the trade at 22k! And that's a 4 month old car with 1k miles.

This morning I sold mine to WBAC.com and get £25,500 so Ive lost £3.5k in 4 months (bought it cash)

I must admit that despite taking the hit, I'm glad it's gone because according to 'the trade' values are far from firming up. Sometimes you just have to lok at the big picture and I decided that considering the use it was getting I'd rather lose the £3.5k now rather than keep it for 12 months, put a few thousand on the clock and lose £10K

Anyone who is looking to buy new and has the skill to play hardball then 20% off list is readily available. It's a buyers market for these higher end VW's

[sotonjoe]

Reading all of these posts.VW seem to be going down the same road as Ford and Vauxhall.Big discounts etc.
Maybe not at the same level.But it is certainly going to rebound on the( once famous) resale values.

It seems to me that we might be heading towards BMW levels of GFV, in the region of 45% of RRP after 3 years, not quite as drastic as Ford/Vauxhall/French/Italian 30-40%.

If that happens, then fair enough if you can reap the discounts to still be at a respectable 50-55% of what you actually paid. If that doesn't happen in the future then chances are, i'll be moving to Audi (who seem to have come off relatively unscathed following the scandal).

For the good of future VW residuals, hopefully all these incentives and loyalty payments will be a shortlived thing. VW finance are taking some of the hit by offering lower PCP APR% to keep the monthlies the same despite lower GFVs.

I think the VW gfv figures are already there aren't they? List of £29750 with gfv of approx £13k after three years and £11.5k after four years. Similar to BMW in that the depreciation is massive unless you get the full discount that could possibly be achieved at the time of purchase which makes it a bit less painful.

 Thing is, at the moment, my anecdotal experience suggests that VW dealers are still a bit more coy about discounts than BMW dealers. I would be amazed if vw could maintain their desired sales levels long term by selling cars with only say a 5% discount off list on pcp deals with these new lower gfv figures.

Its not just the effect of the depreciation one you are already an owner, it's the fact that the VW cars look very expensive compared to other cars in terms of monthly payments if you are buying at or near to list.

[sotonjoe]

Just to add in here

I bought my 5 door DSG Golf R pre reg. I paid £29k in September.

I own a few other cars, one being an ED30. I found that in the 4 months of owning the R that I preferred the drive of the ED30, plus with it being new, I didn't really want the R on the road getting battered with stonechips.

Anyway last week I decided to cut the R loose as the values seemed to be dropping like a stone and with all the dealers having glut of pre reg not shifting I decided to move it on. I have a car related business (not sales) but have a lot of contacts such as independent buyers for performance car sellers and also live next door to the DP of an Audi dealership.

The bottom line is that nearly new VW's like the R, GTI and GTD are not wanted in the trade at the moment as many VW dealerships bought a load of said cars and pre reg them all thinking theyd sell - then the VW scandal broke and VW sales are down. That's why when you look on PH, AT etc theres loads of them and there's all sorts of incentives, deals and the like to get people to buy.

Selling a £25-30k car privately is difficult as at that price point people want finance, PX and dealership backing. So this leaves potential buyers of said cars to be the trade themselves, and with them sruggling to shift existing stock, plus the discount they can buy them from VW, selling one back into the trade is impossible without taking a huge hit.

My trade contacts were getting bids for my car from buyers in the trade at 22k! And that's a 4 month old car with 1k miles.

This morning I sold mine to WBAC.com and get £25,500 so Ive lost £3.5k in 4 months (bought it cash)

I must admit that despite taking the hit, I'm glad it's gone because according to 'the trade' values are far from firming up. Sometimes you just have to lok at the big picture and I decided that considering the use it was getting I'd rather lose the £3.5k now rather than keep it for 12 months, put a few thousand on the clock and lose £10K

Anyone who is looking to buy new and has the skill to play hardball then 20% off list is readily available. It's a buyers market for these higher end VW's

I'm not sure 20% off list is achievable on a new non pre reg gti when the dealer gets 15% to play with in the first place. Surely it's case of hoping for 10% from the dealer plus whatever incentives are coming direct from VW?

[wakey]

A dealer pay a LOT less than that and the price they pay varies depending on how many they sell

Thats why they pre reg them to keep the sales targets and get the discounts

[sotonjoe]

A dealer pay a LOT less than that and the price they pay varies depending on how many they sell

Thats why they pre reg them to keep the sales targets and get the discounts

If you know of a dealer selling new non pre reg gtis at  20% off  please could you share the details because I would be interested in talking to them.

[Cossieian]

Maybe I choose the wrong time to buy a car on PCP?? Always owned my cars outright but wanted to release all the money I had tied up in them. Aswell means I need to keep and enjoy my car for a while instead of changing every few months lol

[Exonian]

Maybe I choose the wrong time to buy a car on PCP?? Always owned my cars outright but wanted to release all the money I had tied up in them. Aswell means I need to keep and enjoy my car for a while instead of changing every few months lol

Don't worry, you'll be able to feed your addiction by changing wheels and tyres every few days instead...
 

[monkeyhanger]

A dealer pay a LOT less than that and the price they pay varies depending on how many they sell

Thats why they pre reg them to keep the sales targets and get the discounts

My salesman told me that:-

The standard discount on list for a VW dealer is 5%, but through volume they can get this up to 15%. Additionally there's a customer satisfaction bonus of up to 8% - which is why the VWCS survey that some get called up for a few weeks after new car collection is so important to them.

It is harder to get a big discount on a VW (and harder still for Audi) than a BMW. 24% on some BMWs is achievable now as they're heavy on the fleet side of things, and that affects residuals (used prices) when swathes of ex police cars (almost every police car I see is a 3 or 5 series,and all the small ambulance cars tend to be X1s) and company cars head to the auctions after service. Same can be said of the bigger Audis to a lesser extent, but not many A3s and Golfs (% wise) become company cars.

The GFV % is falling on the performance Golfs not because they're likely to be worth a lot less at trade-in, but because the GFV value hasn't gone up in line with all the price rises that have come in - since the GTI and GTD launched, the car has become about 12% dearer (RRP) in just 2.5 years. How many other products you buy have gone up so steeply in the same period?

[TurboTrev]

Anyone who is looking to buy new and has the skill to play hardball then 20% off list is readily available. It's a buyers market for these higher end VW's

Really, I very much doubt it?  Grateful if you could back that up with one dealer's name as my daughter is ready to buy.