Golf R, used or new?

[docwyte]

I wanted a 7.5 and initially looked around for a '18, preferably CPO'd. That way it'd have an even longer warranty than if I bought a new '19. What I found is that asking prices for any used '18 last summer, whether CPO'd or not, were within a few thousand of one brand new. At that point I'd rather have a brand new car, so that's what I did.

 

[Mk_GTI]

Some dealers need a reality check on the prices of used Golf R's. Prices are all over the place.

My R was in VW dealer's inventory for 45 days when I first looked at it. A used vehicle normally goes to auction around the 90 day mark. They wanted $37,500+TTL and would not budge, so I walked. A week later, they called me and offered me $1k more than average book for my 2010 GTI that they didn't even ever look at or drive, but held on the $37,500 price. No one must have looked at the car because the mileage was the same as the week before.

Then, VW was offering another $500 off on CPO cars financed through them (which I financed at 4% for 60mos). I figure my actual purchase price for the car was $36,000+TTL. New ones were coming down around $40k, but with the minimal miles and extra warranty on this car, I think my R was a decent deal.

 

[George Ab]

I would have no problem buying a used R. Be aware that if engine is tuned it will negate your powertrain warranty. Not the end of the world, but for me it would affect price. This is coming from a person who purchased new (no used MK7's in 2014) and immeiately tuned at 1,000 miles.

 

[jimlloyd40]

If it's a car that I'm going to mod I only purchase new.

 

[Golfer883]

As someone who has been in both positions (purchased a '16 new, and later a '16 used), if you're trying to be financially conscientious, used is the obvious choice. Realistically, a '16 or '17 with miles in the range you've stated should be around $30-$31k. ~$10k is a big chunk of depreciation you won't have to swallow, for what is essentially the same car but lightly used. I'd also say you should really hold out for a clean example with a good history, if waiting a little for 'the one' isn't in conflict with your goals.

As echoed in the comments here, this can be a very reliable platform, so with a good maintenance history and passing the eye test that it's been taken care of, there shouldn't be much cause for concern. When I bought my '16 R DSG with 30k miles, I performed the haldex service, and shortly after that the DSG service. Other than those two items, you pretty much just need to perform the regular oil/filter services.

Good luck!

Except that the used car will depreciate 10 more grand in a couple more years.

 

[MSH]

Except that the used car will depreciate 10 more grand in a couple more years.

While that may be true the new car will to. The difference is the new car, on average, takes ~20% of the depreciation in yr 1 with ~10% the minute you drive it off the lot. Yrs 2-5 are closer to 9-10% annually. I'm pulling these #'s from Edmunds and Carfax articles BTW.
It's that immediate depreciation straight away the minute you drive off dealer lot that kills me, but I get hung up on the #'s when I understand a lot of people don't give a shit. Different priorities for everyone. Anyways, that's the reason I targeted a '16 when I bought earlier this year and took my time to find a private party (vs dealer CPO for more $) example that was well taken care of.

 

[Golfer883]

While that may be true the new car will to. The difference is the new car, on average, takes ~20% of the depreciation in yr 1 with ~10% the minute you drive it off the lot. Yrs 2-5 are closer to 9-10% annually. I'm pulling these #'s from Edmunds and Carfax articles BTW.
It's that immediate depreciation straight away the minute you drive off dealer lot that kills me, but I get hung up on the #'s when I understand a lot of people don't give a shit. Different priorities for everyone. Anyways, that's the reason I targeted a '16 when I bought earlier this year and took my time to find a private party (vs dealer CPO for more $) example that was well taken care of.

yea I worked the numbers before, I looked up some of the deal prices people were getting vs a 1 year old gti etc. added 12,000 miles a year on kbb private party sell price and the difference for year 1 was only like 2 grand more vs year 2-4. If you compare to sticker price your right but if you get a decent deal (5 grand off) then the difference wasn’t all that much.

 

[Golfer883]

Actually did it again and first year to second was a bigger hit. After first year it was a wash though, pretty much same rate after that.

 

[Mk_GTI]

It's that immediate depreciation straight away the minute you drive off dealer lot that kills me

That's somewhat of a myth. Unless you can buy the car at wholesale, you'll get an almost equal depreciation hit on that used car as well.

 

[jimlloyd40]

That's somewhat of a myth. Unless you can buy the car at wholesale, you'll get an almost equal depreciation hit on that used car as well.

That's incorrect. A used car doesn't take another depreciation hit after being sold again. If that was true a two year old car that's had three owners would be ridiculously cheap.

 

[Golfer883]

That's incorrect. A used car doesn't take another depreciation hit after being sold again. If that was true a two year old car that's had three owners would be ridiculously cheap.

only if the dealer has it marked a good amount above say the kbb private seller price then you eat that difference driving off the lot but the gti’s I’ve seen from dealers are pretty close to private party price

 

[Mk_GTI]

That's incorrect. A used car doesn't take another depreciation hit after being sold again. If that was true a two year old car that's had three owners would be ridiculously cheap.

Wanna bet? Go buy a used car from a dealer right now, title it, then immediately sell it back to them. You will lose money - aka depreciation.

 

[jimlloyd40]

Wanna bet? Go buy a used car from a dealer right now, title it, then immediately sell it back to them. You will lose money - aka depreciation.

That's correct. Because they aren't going to pay the same price. They want to make a profit. Has nothing to do with depreciation. The dealer incurs expenses when they sell a car and they're going to recover those expenses.

 

[MyGolfMk7]

That's somewhat of a myth. Unless you can buy the car at wholesale, you'll get an almost equal depreciation hit on that used car as well.

Let me get this straight, you contend that when purchasing a used vehicle once the sale occurs the used vehicle incurs a substantial drop in value, on par with what happens when a new car sale takes place and that new car is then sold as used?

 

[Mk_GTI]

Let me get this straight, you contend that when purchasing a used vehicle once the sale occurs the used vehicle incurs a substantial drop in value, on par with what happens when a new car sale takes place and that new car is then sold as used?

Correct. A buying a used vehicle isn't immune from steep depreciation, just like a new one. When you sell eventually the used vehicle, it depreciates just like a brand new one. Just because you bought a used one year old vehicle for 20% off the price of a new one doesn't mean you won't lose another 15-20% a year later when you sell.

Most vehicles depreciate around 40-50% in the first three years. How much it depreciates whether new or used depends on the vehicle.

Figure that that car bought new has also used up 6k-12k miles on the tires, warranty, wear & tear, possible accidents, etc. So that instant 20% drop starts to become less unless that new car was traded in immediately after it was purchased. If you sell that brand new vehicle a year later, the depreciation isn't likely to be 40% unless you bought a car that no one wants, like a Mitsubishi Mirage.