Calculating current value and depreciation of my newish 17 SE vs a new 7.5/R

[Gprro]

Hi everyone! First post. Long time lurker. I’ve had my 17 dsg SE new since end April of 2018. Have been looking to trade, or sell it since end of summer, and it seems to have taken a huge depreciation hit in the last few months. I’m guessing because it’s appearing as a 3 year old car that’s maybe going out of warranty soon. Only a year and roughly 9 months old and just hit 20k miles.

Ive kept it at enthusiast level condition. Hand washes/ trim and interior treatment with 303, actual leather conditioner etc. Looks very good etc. Had a good trade offer of $21750 at the end of Sept, but the deal was off a couple thousand for what I wanted. We were joking at the dealership that it looked better than most of the new cars! Private party value was around 24k at the time!

Went to a couple dealers last month and had the chance to test drive an R, liked it a lot. They were willing to make a good deal, but only offer about 18k on the trade. We’re still off a couple thousand at least?.

So to the question, what’s future depreciation looking like on my car? What might it be worth in a year or two? Maybe it’s slowing down vs what I owe now (about 17k).

Vs. What’s a new Mk7.5 or an R going to be worth in a few years as well? Hoping these would lose less value due to the warranty maybe.

I could buy a new gti, but don’t want to be stuck in the same boat if chasing positive value. I’m thinking the R would be better in the long run if I can get a decent deal and put down a few thousand.

Appreciate any thoughts! I think I really want the R. It’s what I wanted when I got this one, but there were none left at the time. I’ll be around posting more after this. If I keep this car it’s tune time of some sort!

Thanks,
G

 

[KevinC]

GTIs traditionally depreciate pretty badly. And the fact that new ones can be had with massive discounts pretty easily doesn't help their value on the used market either.

The R doesn't depreciate as badly, but you pay up front in a higher price and (typically) less discounting.

You just have to decide if taking a massive hit on a perfectly good GTI is worth it to you personally, and how does it affect your overall financial situation. And also ask yourself - if you do this, and get the R you currently covet - will this happen again in 2 years? Something else comes along that you suddenly want more, so you take another financial bath? I did this more times than I care to recall, and looking back, I would do things differently if given a chance at a do-over. But everyone's situation and priorities are different.

One positive about getting new R now - deals are most definitely out there, and 19's still get the "People's Warranty" that runs 6 yrs/72k and is fully transferable. Which is a nice thing to have - IF you're not going to tune the car.

It's a tough situation, good luck.

 

[GTI Jake]

You’ll never ever be ahead to trade in and buy new.

Either keep it and enjoy or eat 10k depreciation twice (once on the gti and once on the R) and smile knowing life’s short and you’re having fun.

Financially it’ll never make sense, be we all get tempted sometimes

 

[tigeo]

My advice is to always keep your cars if you buy new, pay them off, and drive them. Buying new and trading in every few years is just a terrible decision financially - I know there is more to life/yolo/etc. but that's my opinion. You may as well lease if that is going to happen again or buy a used R.

 

[Acadia18]

Your current car will pretty much be a wash. If you owe about $17k on it, the majority of your trade in value will just be paying off the lien. Which isn't the worst position to be in. So figure it as just walking into a dealer and buying an R with no trade in.

 

[jimlloyd40]

You mentioned losing a couple thousand dollars in both scenarios which suggest to me that you want the private sale price but to trade it in and it's not going to happen. A dealer knows what they can sell your car for so you're either going to lose a couple thousands dollars on the trade in value or they're not going to discount the new car price. Either way you're not going to get the deal you want.

 

[nimonery]

If you want the full value you think your car is worth you will have to sell private party. Dealers offer low on trade because its instant cash for you and saves you a massive headache. Selling a ~$20k car private party is a huge pain as most people who have that much to spend end up just going to a dealer.

 

[Gprro]

Hey everyone thanks for the reply’s!

GTI Jake, what’s up! Saw your car for a minute at BFI Octoberfest. I was on a long lunch break, lol. Stuck around long enough to watch people pull out. Was debating hitting you up for suspension and exhaust work at some point.

Which is part of the allure of an R. Wouldnt need it. Pretoria’s are prob good enough for wheels too, and def more resale value.

So, to distill my long worded first post. Can I calculate future depreciation. Can I base it off model year 15’ and 16’?
The roughly $4k depreciation hit in 4 months was a surprise! No kbb adjustment slider for actual age of the car either. As in no this isn’t a 3 year old car...

 

[tigeo]

Hey everyone thanks for the reply’s!

GTI Jake, what’s up! Saw your car for a minute at BFI Octoberfest. I was on a long lunch break, lol. Stuck around long enough to watch people pull out. Was debating hitting you up for suspension and exhaust work at some point.

Which is part of the allure of an R. Wouldnt need it. Pretoria’s are prob good enough for wheels too, and def more resale value.

So, to distill my long worded first post. Can I calculate future depreciation. Can I base it off model year 15’ and 16’?
The roughly $4k depreciation hit in 4 months was a surprise! No kbb adjustment slider for actual age of the car either. As in no this isn’t a 3 year old car...

Edmunds true cost will give an estimated depreciation table.

 

[Gprro]

If you want the full value you think your car is worth you will have to sell private party. Dealers offer low on trade because its instant cash for you and saves you a massive headache. Selling a ~$20k car private party is a huge pain as most people who have that much to spend end up just going to a dealer.

I’ve considered it, and may still depending what quote I can get from the dealer that made the offer in sept. It is a little more hassle than I want to deal with I think. I had a text going w the manger last month. They said maybe worth 19-20, but their discount was still less than a couple other dealers. I didn’t get a hard quote either.

 

[Gprro]

Edmunds true cost will give an estimated depreciation table.

Oh cool, thanks. I didn’t look at edmunds.

 

[tigeo]

You mentioned losing a couple thousand dollars in both scenarios which suggest to me that you want the private sale price but to trade it in and it's not going to happen. A dealer knows what they can sell your car for so you're either going to lose a couple thousands dollars on the trade in value or they're not going to discount the new car price. Either way you're not going to get the deal you want.

Truth. You never get both. The reason I never trade cars in.

 

[Blindeye_03]

Truth. You never get both. The reason I never trade cars in.

The one advantage of trading a car in is not waiting for someone to buy your car and you (depending on the state) receive a tax credit on the new car.

Having said that, you usually come out ahead selling privately.

 

[Strange Mud]

I'm surprised at the $21750 offer, that seems high. If you want an R and can afford it now is the time. As mentioned if you get a 2019 the 6/72 wtty is a nice thing. Hopefully never needed but nice to have.

Have you ever sold a decent car or just clunkers. It can be a hassle and while you can make more than what a dealer gives there may be tax gains (in CT you discount trade in value b4 figuring tax on new) like Blindeye said. The other part is folks expect to pay less through private sale compared to dealer.

 

[tigeo]

The one advantage of trading a car in is not waiting for someone to buy your car and you (depending on the state) receive a tax credit on the new car.

Having said that, you usually come out ahead selling privately.

I've always come out ahead and I only sell pretty well used/older cars..not stuff a few years old.