Jetta (and VW) depreciation.

[Brute]

Hey guys,

Trying to decide between the Mazda 6 Classic and the VW Jetta TDi manual. A friend told our family that VW's are notorious for bad depreciation and that a Jetta would be much harder to sell 2nd hand....pretty much that the Mazda 6 would be the best option. Now does any one have any proof to show the rest of my family that this man is wrong?

this is for a novated lease, so dad is a bit concerned about residuals.

[STV4SYT]

I saw a post here earlier this week that put depreciation at around 63% for a golf.

Given the current fuel situation and acceptance of diesel, im pretty sure that the TDI's will hold their valuie pretty well, so long as the difference between premium and diesel levels off a bit.

I guess the onyl other factor to consider is that the mazda 6 is a recent model while the jetta will be end of life in 09

[BarneyBoy]

RedBook's predicted retained value after 3 years:
Jetta TDI man: 59%
Mazda 6 Classic: 63%

Fuel economy:
Jetta: 5.8 l/100km
Mazda 6: 8.8 l/100km
ie the Mazda will use 3 litres more fuel every 100kms.

= 360 litres @ 12,000km/year
@ $1.50 per litre = $540 per year
Over 3 years = $1,620 more spent on fuel with the Mazda.

So:
If the Mazda retains 4% more of its purchase price ($40,000), it will retain about $1,600 more than the Jetta's.

Therefore you're $20 ($6.67 a year) better off with the Jetta

Not too notorious, really

[THR]

I saw a post here earlier this week that put depreciation at around 63% for a golf.

Quoting numbers like that is only significant when you also detail over what period of time the depreciation relates to.

I believe that the Golf's, due to such high demand, have very good resale values. I don't see that the Jetta's would be that different, although perhaps not as strong.

I know when looking at buying a Golf, I was initially looking second hand. But the saving off a new vehicle was minimal, so I bought new.

[BarneyBoy]

I believe that the Golf's, due to such high demand, have very good resale values. I don't see that the Jetta's would be that different, although perhaps not as strong.

While the Jetta's 59% isn't bad, the same spec Golf TDI retains 63%.
Based a lot, I expect, on market demand.

Golfs sell much more strongly than Jettas when new, and proportionately better when 2nd hand. Hatches are more popular than sedans - especially when 2nd hand as a 2nd car.

But at the end of the day, why worry about $500 a year if you hate 4 doors or 5 doors? It's not like you're buying a V12 7 Series and are looking at popping $63,000 per year for 3 years!

[mr_walker]

My lease company defined the residual value of my car up front, and they say a 3 year old Jetta TDI with 52500km on the clock will be worth 46.8% of it's original value.

I think that's pretty low, but it works for me cause I'm thinking of either buying it out or releasing it at that time. Pretty sure I could sell it on privately for more than that.

Walker

[Brute]

I guess the onyl other factor to consider is that the mazda 6 is a recent model while the jetta will be end of life in 09

Ahh yes, totally forgot about this! Hmmm, this would have a definite impact on resale wouldnt it

[BarneyBoy]

My lease company defined the residual value of my car up front, and they say a 3 year old Jetta TDI with 52500km on the clock will be worth 46.8% of it's original value.

I think that's pretty low, but it works for me cause I'm thinking of either buying it out or releasing it at that time. Pretty sure I could sell it on privately for more than that.

Walker

That sort of mileage is at the upper end of valuation - I think they say 10K is low, 15K is medium, and 20K is high - so that would count against it? Condition is another variable. If you look after the car, it will doubtless be worth a few percent more than one that's a rolling wreck!

And anyway if petrol keeps rising (it will) and diesel at least keeps in sight of petrol's price, it will have to appreciate. Diesels are only just starting to be widely accepted - a few years down the road and they'll be commonplace.

One thing's for sure: valuations on cars are like real estate - us punters are in the dark (mostly) about true values / projected values &c - we have to just trust in what the market is willing to pay at the time we sell.

[moguzhan]

If you're worried about residuals, get a toyota corolla. They have the lowest depreciation and theyre also the most boring to drive.

1 major problem i dont like with the mazda 6 is that its way to common. its like the Astras. They'res too many of them and once the 3rd year is up, they're all traded in. Once there is more supply than demand, the car will plummet in price like the Astras. If you want the Mazda 6 still, get the new model that just came out. You'll have about 3 years or so until they change the body before the prices plummet again.

This is why Holdens, Fords and Mitsubishis are the worse type of cars to get on a lease. 5th year worth - $0

[VW Convert]

Hey guys,

Trying to decide between the Mazda 6 Classic and the VW Jetta TDi manual. A friend told our family that VW's are notorious for bad depreciation and that a Jetta would be much harder to sell 2nd hand....pretty much that the Mazda 6 would be the best option. Now does any one have any proof to show the rest of my family that this man is wrong?

this is for a novated lease, so dad is a bit concerned about residuals.

I considered this as a factor before I bought the Jetta. Both Honda Accord Euro and Mazda 6 appeared to be better bets.......then I drove all 3 cars. I know my decision was right regardless of depreciation!

As moguzhan said, if depreciation is the deciding factor, get a Corolla and be bored s**tless driving it.

Cheers

George

[anthony]

I have been looking at used Jettas on carsales websited as well as at VW dealers,and they seem to be retaining their values very well.
In 2006 and 2007 it was the second best selling VW after the Golf in Australia,so should be a safe buy.
I say get it over the Mazda 6.
The new shape looks very bland.
But drive them both,and then deceide.
And let us know.
I chose my Jetta over the previous model Mazda6 and Honda Accord Euro,and am quite happy with my choice.
It is a stunning car in a lot of respects.

[STV4SYT]

Quoting numbers like that is only significant when you also detail over what period of time the depreciation relates to.

Its the standard 3 years that gets quoted in most publications, but i do believe barney boy cleared that up in the next post...

[ozgriff]

I feel that VW is enjoying a massive high because of the great line-up of mkV cars. This is also reflected in their higher than usual sales figures. I'm not sure if the Red Book takes figures like this into account, or if the % slowly rise.

Mazda had the same high when they brought out the range of 3 and 6 cars, which have become quite common place (and are good cars IMO). The new 6 range is looking good.

Either way, I think the $$ in it could be marginal.

Go for the car you enjoy the most... and if it is so line-ball, go for the dealer with the biggest sale discount.

[BeigeJet]

My lease company defined the residual value of my car up front, and they say a 3 year old Jetta TDI with 52500km on the clock will be worth 46.8% of it's original value.

I think that's pretty low, but it works for me cause I'm thinking of either buying it out or releasing it at that time. Pretty sure I could sell it on privately for more than that.

Walker

Mr Walker,

your residual on a lease is probably more a factor of Austrailan Tax Office rulings for Fringe Benefits Tax rather than actual depreciation. This is assuming your lease is via employer like mine. Also the longer the lease the lower the residual. I recall mine being 25% after 5 years.

[THR]

Its the standard 3 years that gets quoted in most publications, but i do believe barney boy cleared that up in the next post...

My mistake/ignorance.