New VS Second hand = the Maths of it!

[blue_reality]

Having a good read through the 'How much you paid' thread some people are getting GOLF GTI's for as low as $40,000 driveaway. Others are closer to $45,000 with lots of options added.

So looking at second hand GTI's - a 2007 model privately are between $35,000 and $38,000. Lets take one for $37,000 for example.

Then add transfer of rego fee and stamp duty at 3% (NSW) $1100 plus any rego if needed and you're up around $39,000. Why not add $1000 or $2000 and buy a brand new one?

Have I missed something? Why are people buying second hand for $35,000-$37,000 when its minimally cheaper than brand new with full warranty and rego etc?

[Alfy]

Having a good read through the 'How much you paid' thread some people are getting GOLF GTI's for as low as $40,000 driveaway. Others are closer to $45,000 with lots of options added.

So looking at second hand GTI's - a 2007 model privately are between $35,000 and $38,000. Lets take one for $37,000 for example.

Then add transfer of rego fee and stamp duty at 3% (NSW) $1100 plus any rego if needed and you're up around $39,000. Why not add $1000 or $2000 and buy a brand new one?

Have I missed something? Why are people buying second hand for $35,000-$37,000 when its minimally cheaper than brand new with full warranty and rego etc?

so you are better off getting a new one that is untouched, and has the lesser chance of being revved the hell out of

[volx]

...Golfs do tend to sell, second hand, close to their new value. It is certainly worth looking at new.
However, for some people that 2-3,000 dollars is the difference between getting a higher or lower spec car. Personally looking at paying cash (for a host of reasons) for a 2.0l FSI, I can go new with no options, or accept a few kms on the clock and get leather/sunroof, etc.
The other thing is that a wait list for the car you want might send you towards used... again, my situation, with a 12 week wait. (Although if I'd just put my name down in the first place, I'd have the damn thing by now!!!)

I'm no economist, just an observer!

[NickZ]

It is a very good point. I mentioned in an earlier post how a $35k is only 12.5% discount. Take it as a good thing as the GTI has very good resale values.

However, the prices will fall once the MK6 is released in a couple of years. If you look at the prices of the Mk4 GTI, even a low km 2004 model can be bought in the low 20s easily. Compare this to the oldest Mk5 which is only one year apart.

I would get a new one. Either way it is going to depreciate a lot, and your not saving that much getting second hand as you mentioned.

[hrb93]

I went new for the same reasons.

[mrx]

It is a very good point. I mentioned in an earlier post how a $35k is only 12.5% discount. Take it as a good thing as the GTI has very good resale values.

However, the prices will fall once the MK6 is released in a couple of years. If you look at the prices of the Mk4 GTI, even a low km 2004 model can be bought in the low 20s easily. Compare this to the oldest Mk5 which is only one year apart.

I would get a new one. Either way it is going to depreciate a lot, and your not saving that much getting second hand as you mentioned.

This assumes the Mk6 will actually be a step forwards, rather than just a cost cutting excercise. Only time will tell.

[Golf Houso]

This assumes the Mk6 will actually be a step forwards, rather than just a cost cutting exercise. Only time will tell.

If they don't differentiate the product enough they will fail utterly, their sales, the whole golf line and the brand will suffer tremendously. I can't see how this cost cutting is any different to the moves in production from Germany to other countries such as Czech republic and South Africa. VW won't commit industrial suicide don't worry about that

And besides, if they can market the car well, it will hardly matter anyway. What about the Holden Epica? Its actually just a Daewoo Nubira in drag. Not to mention the Barina which is a Matiz, has seen exceptional sales since its launch.

[volx]

As always, resale value (projecting it before even taking ownership of a car) is akin to tarot reading.... as I keep being told as I pick over residual projections!

Golfs generally hold their value well compared to other cars (eg Peugeot 307). No matter what marque, new models will come out every 5-7 years, and values will fall... still less with a Golf than others.

There is a chance the new model will fail to fly (not different enough, a step down in quality, etc) and your 'successful' previous model will hold its value.

Also, even with Mk 6 (hinted in yesterday's Fairfax 'Drive' liftout as available mid 2009) in showrooms, a new model takes a couple of years to become the dominant model - and be available to second-hand buyers... so Golf 5 shouldn't plummet until there is a steady stream of used Golf 6s. (Yes, Mk4 GTIs are low 20s now, but what were they going for in 2004/2005 when Mk5 was brand new? Probably 30s?!)

That was the circuitous route to the conclusion that a Mk5 GTI new now is not a poor economical proposition, provided you can afford its price tag!

[Golf Houso]

An old wheels mag said $41,990 w/o on roads I think for the IV GTI, correct me if I'm wrong. Food for thought though...