Part ex depreciation - VW

boungekite

I ordered a VW Scirocco in July 09 and it was meant to be delivered in early December 09. I had an agreed trade in price for the car I was going to part ex in December.
December came and went with no sign of the car, which finally arrived in the UK last week (this alone has been frustrating enough - with no compensation after numerous phone calls)

I went to the dealer yesterday and they now say that because of the 3 month delay from original delivery, the value of my part ex has dropped by £1000!

I nearly laughed my way out of the showroom....

The way I see it. the delay was out of my control and we had both signed and agreed the dates. The delay was caused by them so why should I be worse off...!
They have a clause that says they can decrease the part ex value by 2.5% per month if the delay is by no fault of theirs... which I think it is!!

Any advice?

Anihilator

Yes a delay in delivery due to the manufacturer isnt the fault of the dealer and is fairly common in new cars and part of the terms hence the 2.5% term per month is valid.

The fact is your car is now 3 months older and on the verge of a plate change were the market will be flooded with pre regs, demos etc is reduced in value a lot.

Unfortunate for you but you should have read the terms and raised this months ago to protect your position.

vikingaero

The dealer has no say on production and can only use the estimated production/delivery dates given by the factory. If these slip all they can do is to inform the customer.

motorguy

boungekite wrote: »

The way I see it. the delay was out of my control and we had both signed and agreed the dates. The delay was caused by them so why should I be worse off...!
They have a clause that says they can decrease the part ex value by 2.5% per month if the delay is by no fault of theirs... which I think it is!!

Any advice?

Down to manufacturing schedules of what is a very popular car - not the dealers fault.

mark5

On the plus side the Scirocco will be on the new march plate and not a 59 plate.

AdrianHi

The question is, is £333 a month a fair depreciation figure for your current car?
I guess your car must be fairly young and of a similar grade to this Scirroco for £333 a month to be right.
If you'd had the Scirroco for the last 3 months you would have lost even more to depreciation.

petrolhead69

I would disagree. Your contract of sale is with the dealer not the manufacturer, so the delay and cost incurred should be the responsibillity of the dealler. If they are !!!!ing you about before purchase how do you think they will behave after they have your money. Find another dealer.

motorguy

petrolhead69 wrote: »

I would disagree. Your contract of sale is with the dealer not the manufacturer, so the delay and cost incurred should be the responsibillity of the dealler. If they are !!!!ing you about before purchase how do you think they will behave after they have your money. Find another dealer.

.... and have the next dealer quote the trade in price at todays price AND go to the back of the queue for ordering the car again.

Brilliant.

motorguy

AdrianHi wrote: »

The question is, is £333 a month a fair depreciation figure for your current car?
I guess your car must be fairly young and of a similar grade to this Scirroco for £333 a month to be right.
If you'd had the Scirroco for the last 3 months you would have lost even more to depreciation.

Plus its happened at the worst time for depreciation on a car - change of year, AND then change of plate.

On the plus side, the inverse is now true for the new car, its going to be 2010 registered and have the new plate, meaning it'll be worth more come trade in time.

petrolhead69

So handing tens of thousands of pounds to a retailler that has a track record of shafting you is brilliant too? The delay is the dealers problem, not the customers as the contract of sale is with the dealer. Or does the SOGA not apply to new car dealers?

pgilc1 wrote: »

.... and have the next dealer quote the trade in price at todays price AND go to the back of the queue for ordering the car again.

Brilliant.

AdrianHi

Going back a few (8+) years BMW dealers used to have this problem, new 3 series comes out, huge demand, 6 to 9 month waiting list, customers getting upset with changing trade in deals and waiting so long. Results in strong residual values (low depreciation) but an angry customer base.
BMW addressed this problem with a radical change in production technique at a brand new factory. End result, I order my new 3 series touring, popular like the last model, I get it in 6 weeks at the agreed trade in price. The other side effect is the supply of this car is now so good so residual values are weaker, I've lost more in depreciation.

So the question is, which way to you want it?
Fast delivery, fixed trade in price, more depreciation expense on the new car... or ....
Slow delivery, renegotiated trade in value ('cause the dealer will loose money on the deal otherwise) but the new car *probably* looses less in depreciation in future.