Golf R, used or new?

[Mk_GTI]

so you are going off dealer prices vs private seller, aka the guy who lives next to you. I agree dealer prices are higher than kbb private sale. The dealer has expenses they pay (salesman, managers, maintenance etc etc ) for the cars on their lot so they charge more than the guy up the street selling his car. Plus the dealer will the tools to detail the car better than your neighbor selling a car plus they are much more convenient. That’s the reason they are able to charge more, I can list my car for dealer prices but I’m going to have a hard time selling it since I don’t offer the perks the dealer has.

Since dealers offer the vast majority of used 2018 SE's on the market, they are a good indicator for a range of what a particular model is selling for in that market. I would always assume a private party sale would go for less money for the reasons you list.

 

[MyGolfMk7]

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.

I was considering the situation posed by the OP where they are considering buying new versus a '16-'18 with 30-40k on it.

I agree the used car will depreciate, but I haven't found any information that suggests cars have a constant rate of depreciation from the time they are sold to a period of time multiple years later. Every source I have seen indicates during the first 12 months the vehicle will experience a higher rate of depreciation than in any subsequent 12 month period.

 

[Mk_GTI]

I was considering the situation posed by the OP where they are considering buying new versus a '16-'18 with 30-40k on it.

I agree the used car will depreciate, but I haven't found any information that suggests cars have a constant rate of depreciation from the time they are sold to a period of time multiple years later. Every source I have seen indicates during the first 12 months the vehicle will experience a higher rate of depreciation than in any subsequent 12 month period.

That is highly dependent on the vehicle purchased. Some vehicles depreciate much faster than others, some hold their value incredibly well. A vehicle depreciates most in the first five years, but then vehicle has also already been in service for five years and is probably out of warranty.

 

[Blakcard]

Where'd the OP go?

 

[MyGolfMk7]

That is highly dependent on the vehicle purchased. Some vehicles depreciate much faster than others, some hold their value incredibly well. A vehicle depreciates most in the first five years, but then vehicle has also already been in service for five years and is probably out of warranty.

Agreed, I'm referencing general trends. I started off by mentioning that the 10-15k saved up front would buy a lot of maintenance with the thought that some ongoing maintenance, that would not be covered by a warranty, would be needed during the period of ownership.

 

[Genegenie]

Always bit risky with used stuff, I've had some great deals and also been stung, kinda luck of the draw though one can reduce the risk. While one may give a 'thrashed within an inch of its life from cold - car loved it' ads a miss, unless really (really) cheap but the 'one owner from new, low miles' ads also require caution. Knew a guy with no disabilies but was so lazy if breathing wasn't mostly automatic he'd suffocate, would drive 100 yds through traffic plus a road junction and back every day to pick up his newspaper, his car was indeed low miles but he never, ever selected neutral (manual gearbox) or used the handbrake "too much messing about" apparently. So a good idea to maybe to have the seller take you for a quick spin just to observe their driving style. Wish I'd recorded the brand of car battery he had, as his car (FIAT) never let him down....

 

[jimlloyd40]

Where'd the OP go?

He hasn't been back since he posted the thread. That happens a lot.