Whats my GTI Worth??

[MR-GTI]

Hey all,

Just a quick one, I'm currently in negotiation of a new Job.
The prob is they will not offer a car allowance, but a company car.

Now the dilemma I have is I have my GTi on lease, as my current job did not offer a company car but a Car allowance.

So If I decide to take this new job, I have no choice but to sell my Polo...

What would it be worth?
I’m afraid the difference will end up costing me some $$ to pay the lease out after the car is sold.

It's a 2006
Silver
Completely standard.
Leather
Sunroof
16,000ks.

Any help would be appreciated.

Thanks

Regs Mr-GTI

[Ben_GTI]

Redbook puts a July 2006 16,000km Polo at $23,200 average private sale for a top figure.

Given you have leather and sunroof, you might be able to squeek $25,000 but remember that redbook averages include all options because it is the average price range for the model regardless of what options it has.

If you put it on the private market for $24,000 it'd sell. If you trade it in you are looking at $19,000. It really sucks for you man because you just copped the new car depreciation!!!

I'd keep it as a fun car, or get a company car below the spec offered and they should pay you the difference between your car's costs and the standard for your job grade.

[ralphk]

MR GTI,

Negotiate a salary sacrifice and a novated lease. It does not cost the employer any more or less to have you there but you get similar tax advantage.

We employ several people and have 2 on novated car leases...they didn't want vw. The others have aq company car, 2 x Golf Silver TDI, 2 x Silver Polo TDI, and my silver polo GTI (with lots of adjustments by Guy )

[gti_freak]

keep this car man. So much fun you can enjor from polo gti and don;t waste the top and luxury options that you own.
Don't sell it !

[gti_freak]

one more thing, if you really desperate to sell it and if i were you, i will list the price for it at $26500. remember your car is top model with all features,trust me there must be someone to buy it.
Try it first.

[LowVeeDub]

Redbook puts a July 2006 16,000km Polo at $23,200 average private sale for a top figure.

Given you have leather and sunroof, you might be able to squeek $25,000 but remember that redbook averages include all options because it is the average price range for the model regardless of what options it has.

If you put it on the private market for $24,000 it'd sell. If you trade it in you are looking at $19,000. It really sucks for you man because you just copped the new car depreciation!!!

I'd keep it as a fun car, or get a company car below the spec offered and they should pay you the difference between your car's costs and the standard for your job grade.

one more thing, if you really desperate to sell it and if i were you, i will list the price for it at $26500. remember your car is top model with all features,trust me there must be someone to buy it.
Try it first.

Redbook is nonsense.. Sometimes there right, but hardly ever.
If you negotiate hard on a new one you could get one for $30500 with leather if the dealer is desperate. So $26500 is a good place to start, you may get lucky. When you buy a new car your on road costs are lost the instant you drive out the door. Good luck with the sale. Id keep it if you can find a way... Great little car.

[mitch_gti]

Dont see how 30,500 is possible.

I work in a dealer network which sells vw and that is beyond possible for us to do. Far below cost.

[Cygnus]

Well, depending on how urgent you are, you could always sell it here on the forum, I think there's a lot of would-be-buyers of the Polo GTI on this forum, and at 16000km and fully kitted out, there should be plenty of interest. I know if I didn't have mine already, I'd be interested at around the $28k mark.

As for how much you can get for a new one with leather, I guess $30500 is possible, but don't forget his car also has sunroof which adds another $1500 and metallic paint. Plus there's no waiting time.

[LowVeeDub]

Dont see how 30,500 is possible.

I work in a dealer network which sells vw and that is beyond possible for us to do. Far below cost.

I work for VW and it has been done, There are many variables when selling a car. Demo vehicles, old stock, service loan cars, end of month numbers?? As i said depends how desperate the dealer is.

[Timbo]

Owners (myself included ) are invariably over-optimistic when it comes to valuing their cars on the second-hand market, which is also pretty soft at the moment due to record new car sales. Red Book & Glass's Guides actually do provide a reasonably good value indicator as they are used in the industry, but remember they are dealing in averages.

Also, unfortunately the market doesn't always retain the relative value of options and modifications, which is one reason why many people remove these before selling.

Finally, studies have shown that time is your best asset when trying to sell anything for the price you want. Most people get rushed into accepting a lower price because they have to get rid of the car.

All that said, check the car sites then set your price and be prepared to wait...or figure out a way to keep the car.

Much as I would like to support the $26,500 starting point, I have a similarly configured car, and I know its depreciated value is now around $25,500. You could always kick off at the old $25,950 price point

[dodgeGTI]

ralphk is on the money, you should put the car on a novated lease which the new company pays the car allowance into. If the allowance won't cover the leave payments you can salary sacrifice the rest.

[PeterHBne]

Go a novated lease. Particularly if you are in a higher tax bracket and doing lots of kms. Very tax effective method of paying off your car and associated expenses.

[Funkdancer]

I love my own novated lease of same spec polo (plus mods added).

[MR-GTI]

Thanks guys,

I'm not sure what to do.. I really love the car, but there is no-way I can keep it if they are going to supply me a company car.

The reason why they want to offer one is they can buy a 1 yr Old car for like 18-20k and thats it, the only expence after that is Rego, Insurance, service and maybe fuel for them.

To them , that is money well spent rather than giving me 15k a yr as a car allowance.

Just the thought of stepping out of the POLO and into a Camery or something else along those lines is a killer.

Regs MR-GTi

[ralphk]

I am not sure you understand how novated leasing works. I have 2 of my own employees doing it. Here is a very basic summary and for the purpose of the exercise lets pretend the car is worth 25000 and the tax rate is 50%, and that running expenses for the car are $10000 per year.

So lets say you are on $80000 with nothing else, you pay $40000 tax (50% of $80000) and you are left with $40000 take home, you now pay your car loan and running expenses of $10000. So you are really left with $30000 to spend after that. The cost to the employer is your $80000 (I have ignored Super)

Now lets do this with a novation
$80000 Gross Salary
-$10000 Salary Sacrifice (this now pays for your car)
$70000 is what is left Gross
-$35000 is what you pay in tax
$35000 is what you have now left This is $5000 more than the above, you still have the same car, the employer costs are the same and everyone is happy. There is no risk or cost to your employer (a little bit of admin but bugger all), if you quit or are fired the car is your responsibility and the employer is not lumped with it.

I have also ignored the FBT from above. Anyway what you need to do is talk to your employer or call someone like Orix or Elite Fleet Management and they will provide you with the exact calcs.

Hope this helps