MKV Golf GTI - to buy new or used?

[outatime]

Hi all,

First post here so go easy on me please

As per the title, I'm looking at buying a GTI.
Given the current 'driveaway' campaign that VW are running, I'm not sure if I should buy used or stretch the budget and go new?

Just a quick look on carsales shows the average price of a used 06/07 model around $33k (give or take, depending on K's, accessories etc).

I'm after a 5dr DSG in white. The only accessory I *want* is leather seats...which according to new pricing should be $42k + $3k, so $45k driveaway with no haggling at all.

If I can haggle the dealer down to under $40k driveaway, I personally dont see the point of buying a 2-3yr old car with all the K's already on it and close to no warranty (if any left at all) for around the $33k mark.

So my question are:
1. Am I being silly by thinking of stretching my budget out to buy new as the $7000 difference (if I can get it at the price I want to pay) is still a big gap?

2. Is <$40k driveaway a realistic price for a new 5dr GTI with leather and DSG?

If any of you have recently bought a GTI, it would be great to know what you paid so I can get an idea of what I should be looking at (I have seen the thread on how much did you pay, but cant find too many GTI's with leather and no other accessories).

Cheers!

[decksla]

i just bought a car and pick it up this friday.

my requirements were, GTi, lightly coloured, 5 door, dsg, and leather.

i first started looking at used models. just under 35k drive away. 3-12 month warranty. 40tho on the clock. 06 models.

the warranty and kms were a concern, so i looked at newer models. under 10thou, the odd extra accessory (sunroof, reverse, etc), up to 24 months warranty, 07 models, for flat 40's drive away. for the extra 5K. i could justify the extra warranty and less kms.

then i thought for an extra 2-4k on top of the previous cars, i could get brand new. so basically, pick my colour, pick my interior, only dealer delivered kms and not a thrashed to the pants dealer demo or used model, and more importantly for me full warranty with roadside assist.

the car i bought will advertise my business and so it must be reliable and in any car related event, i would want to know ill be looked after and not messed around by dealers. it will be doing alot of kms and so starting closer to 0 is better and the newer model is better for me as it gives me more options after the chattel mortgage period has ended.

so to answer your 2 questions.
1. no
2. no (honestly). if you get under $43k drive with leather on a 5, youre doing very well or are holding a gun to their head.

and yeah. i ended up getting a pirelli in silver. it basically goes better with what i have planned for the car and the business. and i could justify the extra expense. plus 230kw with just a chip is too hard to resist (no comments about warranty!!).

good luck. i doubt youll get sub 40s unless you go 3dr and cloth. i went to 5 different VW dealers (in Melbourne) and i tell you what. these cars sell themselves and if you dont buy their car for their cheapest price of say 44k with what you want, someone else will.

btw, if youre in Mel, barloworld in springvale road have a new white 5dr with leather. think i got them to 44k.

[amrjon]

Not sure if this helps, but I would have thought that when the mkvi hits the dealer floors in a month or so, that you might be able to haggle on the mkv gti price a bit more? then again the reverse could happen to with the mkiv gti comming until toward the end of the year (not very helpful I know) I gues just visit or even ring a few dealers to find out how willing to deal they are at present.

If you do go 2nd hand there are quite a few around, so don't be afraid to make some low 1st offers, I'd expect to get a few grand off asking price on private 2nd hand cars. Redbook for private 2006 with dsg is $29,600 - $32,500.

[CatonaPC©]

It's up to you, but go for a new GTI; the extra repayments are worth it. Given the current climate, low interest rates and dealers flushed with stock, you should be able to get yourself a good deal and drive away with a new car. A secondhand car, no matter how good it looks at the time you buy it might reveal problems soon after which you could have probably done without.

[gerhard]

There's nothing like a new one

But don't forget if buying used within the 3 yr warranty you can extend the factory warranty for a reasonable price, considering the cost of say an air con failure.

I doubt you'll get under $40 for a 5door DSG leather car, but good luck if you can.

[h100vw]

If you are buying through your business go new. Depreciation won't be a factor to consider.

Gavin

[RhysQ]

you are comparing an asking price with a low negotiated price so the $7k difference you have there is not really applicable.

with those 'asking' $33k on carsales, there is a good chance in todays market conditions you could walk away with that car for $30k or even less (most probably less). so the difference is more like $10k. yes there is pleasure in buying a brand new car, but start the engine in the showroom and it's not longer new, say goodbye to thousands of dollars.

i bought my Polo GTI 2nd hand when it was just over a year old for $25,000 driveaway (about $30k driveaway for a new one), the dealer was originally asking $29k excl. stamps etc. Some might think 'oh only 5 grand off new', however, mine had leather, tint, 17's, APR chip, upgraded head unit and 2 years of warranty. add all that together 'as new' and it comes in at about $37k drive away. that's a $12k saving on a car that still looked and smelt new, no one new the difference and thought it was new. also when i bought mine in 2007, there were only about 4-5 2nd hand Polo's for sale in QLD and northern NSW all above $25k and they really didn't want to move on price. conditions are much different now for the VW hatches.

as h100vw said, if you want new, buy through your business (if that is an option).

[gerhard]

If you are buying with through your business go new. Depreciation won't be a factor to consider.

Gavin

Depreciation will be a non-cash charge against your revenue

It used to be 22.5% annually with pro-rata in the first year, but I think it's now 15% in the first year even if bought on June 30, and 30% subsequent years. Check with accountant though - always best.

How beneficial the deduction is depends on your marginal tax rate. Mine is always 15% so benefit is not huge. (PM me if you're curious about this.)

[Nathan_B]

low ball offers generally work - depending on their circumstances i guess.. i was lucky to pick up my r32 from a seller that was moving o'seas and needed to offload.. advertised for 43 - i got it for 38.. it's very GTI prices

DSG/sunroof/ipod aswell as factory options incl the leather u wanted

[Zed!]

Well if you can do it through your business then buy new otherwise I'd look for something with low kms <9K maybe an 07/08 and offer them 3/4k less than what they are offering. It's a buyers market and I know it's cruel taking advantage of people desperate to sell, but you can get a bargain. I would monitor carsales and keep an eye on the cars that have been up there a while, make them an offer. When I bought my zed it was advertised for $55K and I got it for $45K

[outatime]

Thanks for all the replies - much appreciated!
I guess it does come down to exactly how much I can get the dealer down to on a new one -he did make the mistake of telling me they had plenty 5dr white DSG with leather in stock! So I guess I can only try.
And I'll have a chat with my accountant about putting through the business.

In the mean time, I guess I'll be watching Carsales for anything that may pop up in WA or VIC (I'm in WA, but happy for an excuse to go to VIC for a few days - which is exactly what I did 2 years ago when I bought my BMW 325ci).

[GTI32]

I think sub $42k with be tough but maybe a chance. The key is to negotiate with a dealer who has the car either in the yard or in the holding yard but on their books. This dealer is funding the car and will be the keenest to sell it. In theory, any dealer can source an unallocated car and negotiate to source an allocated one, but these both attract additional costs that an allocated car does not.
Have a look on carsales for the one you want and check the LMCT. Then call that dealer.

I paid 42.5k for mine last month.

[outatime]

I think sub $42k with be tough but maybe a chance. The key is to negotiate with a dealer who has the car either in the yard or in the holding yard but on their books. This dealer is funding the car and will be the keenest to sell it. In theory, any dealer can source an unallocated car and negotiate to source an allocated one, but these both attract additional costs that an allocated car does not.
Have a look on carsales for the one you want and check the LMCT. Then call that dealer.

I paid 42.5k for mine last month.

ok, 42.5k is good to know - so you basically got leather for free...that gives me a start to work with

As I said in my previous post, the dealer said 'yeh we have plenty' of the one I want, so I guess that should help too!

[isaw]

I got a 07 with 28k on it last week for 33.5... personally I'll keep that 10k fir ECU/springs/rims/tires....

[RhysQ]

I got a 07 with 28k on it last week for 33.5... personally I'll keep that 10k fir ECU/springs/rims/tires....

i like your thinking isaw... that's what i'd do (except probably not spend the whole $10k).