MKV resale value before MKVI release

[pinzvidz]

Without taking the so-called credit crunch or financial crisis into consideration, what do you all think about the resale value of MKVs in the next 12 or so months, especially GTIs? Now that the MKV has pretty much finished production, I've got a feeling the MKV GTI is going to become a sought after vehicle and hold its value pretty well.

[RhysQ]

Without taking the so-called credit crunch or financial crisis into consideration, what do you all think about the resale value of MKVs in the next 12 or so months, especially GTIs? Now that the MKV has pretty much finished production, I've got a feeling the MKV GTI is going to become a sought after vehicle and hold its value pretty well.

you can't really NOT take today's economic conditions into consideration when assessing a re-sale value. i think yesterday's interest rate drop will help out a bit but things will still be tough for a while and bargain prices on cars will continue to come through.

there were a lot of MKV GTI's sold in Australia and there are a lot of 2nd hand ones currently for sale on the net. i'm not so sure they will be a sought after vehicle. i do think at some stage, the MKIV and MKV R32's will be sought after as they will be a discontinued V6 hatch (same thing with the VR6).

thats just my opinion. i work as a property valuer and as much as its got nothing to do with cars, they are both a fluctuating market and i spend a large part of my day researching past and future trends and projecting consumer confidence and market activity..... and what happens in the property market will definitely have an influence on the motor industry with the cash available for car purchases.

i think with the MKVI GTI coming through the MKV GTI will continue to decrease in value (as much as any other top of the line car). i'm guessing the MKV GTI will not be 'unique' in any way from the MKVI GTI and therefore will not hold its value as well as some would like.

Cheers,
Rhys

[gregozedobe]

But just watch the prices (and waiting times) for the Mk 6 GTI when they do finally become available in Oz (assuming they are any good). There will be an awful lot of pent-up demand for them. Remember the early days of the MkV GTI ?

[Guest212]

its not worth worrying about.

all cars depreciate. just get your moneys worth from them

(have fun.. )

[Burgs]

I doubt they will hold their value as well as more sort after and Limited MK V's like your Pirelli Edition and R32's. I do think they will fair reasonably well as im seeing an influx of local gas guzzlers on local lots and more economical sporty cars may attract some of these buyers, that being said there are alot of KK V GTI's out on the market these days.

[moguzhan]

if you want high resale value, stick to BMW and MERCEDES

if you want a fast car that keeps value, get a Mitsubishi Evo. Old ones are still going for 30k+

i just lease my car. ensure theres a balloon and then trade it in and get something else. 4 year turn around every cycle. works well if you get decent cars. forget anything common like holden or ford though.

[Pablo64]

er, since when have Mercedes had good resale values? (or a better than average result in reliability surveys for that matter?). BMW don't have exceptional resales either.

[STV4SYT]

er, since when have Mercedes had good resale values? (or a better than average result in reliability surveys for that matter?). BMW don't have exceptional resales either.

Yeah, and if the trend in the UK hits here they will be even worse, Top Gear UK this week had all the prestige brands losing 50% of their value in the first year.

An old schoolfriend of mine that runs a car dealership in the UK has been inundated with people wanting to trade down their cars to cheaper more economical models.

[DaveMack]

its not worth worrying about.

all cars depreciate. just get your moneys worth from them

(have fun.. )

I'm with Yom on this. Money is a tidal thing ... comes in ... goes out ... just ride the wave.

Dave

[tdi guy]

new cars not an investment

I agree with most of the observations. Of course some buyers may prefer the MkV to the MkVI (which to my eyes looks abit 'down market' on the outside, though perhaps abit more 'upmarket' on the inside).

The reality is that new cars are not much of an investment. The fall in the $A may hold up the resale value of imports, though (especially if next year it falls to US0.40 as predicted last week...)

[VR32]

Right now is the worst time for resale values no one is buying cars and everyone is trying to sell therefore the market is a buyer one, i bought my R32 in February at the time there was about 5 R32's mk4 and 5 for sale on carsales now there are 5 pages, no car is immune to depreciation just enjoy your car and be thankful you don't own a HSV witch you paid 90k for and in three years will prob worth 40

[dilbert_rocks]

Effect of Financiers Pulling Out of Aust.

I watched a segment on TV this morning where they mentioned that two of the big(gest?) motor vehicle financiers were pulling out of Australia at the end of 2008 (GE was one of them).

The presenter said that (almost?) all cars on a dealer's showroom floor were bought from the manufacturer (ie: owned) by the financier. They were talking about $2Billion worth of stock nationwide. The concern is that the dealers aren't in a position to purchase this and keep it on the floor, so they might be going to mass auctions. A flood like this would surely drive the price down (with a flow-on effect to the used-car market / depreciation of existing cars). And the industry is concerned that this will impact on dealers for the next 18 months.

Maybe I should sell mine now, and buy in again in a few months for a newer model?

[red barron]

I bought by GTI to keep for as a long term car. I wanted one for years before I purchased it last year. I just see buying new cars every couple of years a waste of money. I can't see why my GTI won't last me the distance and in the end its still going to resell better in years to come then most other hatchbacks!

[Tricky]

I watched a segment on TV this morning where they mentioned that two of the big(gest?) motor vehicle financiers were pulling out of Australia at the end of 2008 (GE was one of them).

The presenter said that (almost?) all cars on a dealer's showroom floor were bought from the manufacturer (ie: owned) by the financier. They were talking about $2Billion worth of stock nationwide. The concern is that the dealers aren't in a position to purchase this and keep it on the floor, so they might be going to mass auctions. A flood like this would surely drive the price down (with a flow-on effect to the used-car market / depreciation of existing cars). And the industry is concerned that this will impact on dealers for the next 18 months.

I saw that report too. The other financier pulling out was GM's GMAC. There's also been some speculation in the business press that Australia's motor industry will be the hardest hit as a result of the financial crisis, after the property sector. Check out this article.

I've been trying to sell my GTI for a few weeks now... I've had a couple of guys interested and both failed to secure finance (not sure if they had 'iffy' backgrounds anyway, or whether its a manifestation of tighter checks/lower credit availability).