What value: Redbook?

[dilbert_rocks]

Have been told by the new car sales rep (& his manager) that the Redbook valuation certificate is for INSURANCE purposes, rather than a true representation of TRADE valuation. Certainly not the way its marketed by Redbook: https://www.redbook.com.au/valuation-report/

Any thoughts

Thanks

[Umai Naa!!]

What it's worth to the dealership as a trade-in, is different to what it's worth on the used-car market. They need to make a profit on it.

Have a look at what similar ones are going for, and that should give you some sort of idea of market value.

You'll find that used VWs aren't worth very much, particularly ones known for problems.

[JustCruisn]

The redbook valuation service which you pay for is not the same as the general guide price that the dealer is probably referring to.

So they reckon a 2006 Jetta Turbo is worth $4,900 - $6,600 private or $2,800 - $4,500 trade
I sold mine for $7500 a few months back, it had a few factory options and low km.

https://www.redbook.com.au/cars/details/2006-volkswagen-jetta-turbo-1km-auto-my07/SPOT-ITM-286650/

I don't understand why someone would pay to get a valuation, it will not make any difference to how much someone will pay for your old car.

[Sunny43.5]

As Umai said any VW model that has history of problems will be shunned by dealers , we nearly got caught a few years back when we went to trade our VW T5 Transporter on a new van . The sales person got his valuer to appraise the van so even with service history and only 110 thousand kays one owner with **** loads of custom interior work done . The valuer came back into the showroom and had the audacity to tell the salesman right in front of me that as it was an auto in his words "I would not trust it " so the salesman offered me between $4000 and $8000 for a van that on the books and at dealers was easily selling for around $20 thousand . Naturally we walked from the place .

[dinot81]

Dealers only pay trade-in prices as a wholesale price they can get for your car. Most dealers sell the cars to 2nd hand dealers at wholesale prices. To avoid risk of being stuck with your car, they only offer very low prices (told by dealer who also recommended I sell privately. In 2015 when I bought my Tiguan, best trade-in I got for Mazda was 5k, a car with only 65k kms, complete service history and pristine condition. Ended up selling privately for $9500.

If you have the time and patience, sell privately. Lot more in for you.

2015 Tiguan 130TDI R-Line, Pepper Grey, Panoramic Sunroof

[Rooboy]

Agree with most of that but often the trade in price offered is reflective of the deal ie if the car is a long way under normal driveaway pricing the trade in offered will similarly be a long way under trade. When I bought my Yeti years ago I was offered $700 for a VT I ended up selling for $4200. When changing over last year, I was offered $9500 for the Yeti with low km, full service history and in excellent condition and I sold it privately for $16500. If you're not desperate to get rid of the car the money is far better in your pocket.

[Sunny43.5]

Yes the good old days have gone , you could go in to by a new car and got treated with respect and you could expect a decent trade in on your old car . These days its all one sided , you don't think those multi million dollar showrooms grow on trees .

[Dutch77]

A decent trade in matched by very little off sticker back in the good old days when margins were fatter.

New car margins are pretty rubbish now, they certainly can't afford to run second hand stock so it goes wholesale. I'd much prefer the savings in my pocket, and work out whether my time is worth it to sell privately or let it go wholesale (my last VW = wholesale, the BMW went private).

[Transporter]

I can’t complain, I’ve sold my 12 year old T5 for $16,500.

The resale value is down because price of the price of cars came down or is the same compared to 20 years ago, and more people are buying a new car every 3 years.

Now, who is to blame for it?

[Johnbu]

I can’t complain, I’ve sold my 12 year old T5 for $16,500.

The resale value is down because price of the price of cars came down or is the same compared to 20 years ago, and more people are buying a new car every 3 years.

Now, who is to blame for it?

A bit of both.

Supply versus demand. Plus there has to be some fat in it for the dealers.

20 years ago most P platers drove run down unsafe ****boxes.

Now they are more likely to drive a new Corolla, i30 or [insert small car here] due to greater family wealth and focus on safety.

Unless it's an interesting sports car or hot hatch no one wants used cars anymore when new cars are so cheap.

In the old days a cheap unrealiable car could be fixed easily and cheaply, these days cars are expensive to fix if you don't DIY, in particular European cars.

Or I could buy my child a $20k brand new car that is safe and reliable. A brand new $20k car has Auto Emergency Braking these days! 10 years ago, your $200k Merc S Class didn't.

If you want good resale, buy a Corolla or a WRX. Neither are cutting edge, but are tried and proven- an advantage of using old technology.









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[Transporter]

Could it Ben that the registration is cheap and many keep very old cars and not use them daily? Or maybe some have that old 4x4 they use from time to time. Which brings the average age of the car in AU down, but it’s most likely different when the one would compare the cars that are used for daily drives to work and shops.

Example, my current vehicle for work is 2 years old (it will get replaced when it’s 3 years old) my back up van (T5) is 12 years old and I hardly ever drive it. So, it doesn’t mean that I keep my car that I use for everyday drive for 7 years.

Mind you I know many people who have vintage car or two and they buy a new car every 3-4 years.

[Transporter]

A bit of both.

Supply versus demand. Plus there has to be some fat in it for the dealers.

20 years ago most P platers drove run down unsafe ****boxes.

Now they are more likely to drive a new Corolla, i30 or [insert small car here] due to greater family wealth and focus on safety.

Unless it's an interesting sports car or hot hatch no one wants used cars anymore when new cars are so cheap.

In the old days a cheap unrealiable car could be fixed easily and cheaply, these days cars are expensive to fix if you don't DIY, in particular European cars.

Or I could buy my child a $20k brand new car that is safe and reliable. A brand new $20k car has Auto Emergency Braking these days! 10 years ago, your $200k Merc S Class didn't.

If you want good resale, buy a Corolla or a WRX. Neither are cutting edge, but are tried and proven- an advantage of using old technology.









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I agree.

[jets]

I’ve sold my 12 year old T5 for $16,500.

So what have you replaced it with?

[Transporter]

So what have you replaced it with?

With 2016 Sprinter 316 4x4, which Dealer delivered with very noisy front diff and had to be replaced just at 1000km, but by 20,000km noise came back, so I’ve sold it and bought Iveco Daily. Just took delivery last Thursday.

[jets]

With 2016 Sprinter 316 4x4, which Dealer delivered with very noisy front diff and had to be replaced just at 1000km, but by 20,000km noise came back, so I’ve sold it

That's not very good at all. I hope you get a more reliable van in the Iveco.