New car depreciation?

motorguy

mahesh_on wrote: »

Hi Jenny
I used to live in Norn Irlnd -well around Belfast anyway:) I'd say based on the prices i saw round Boucher road that they do mark up a bit more!
A lot of ppl use online brokers who hook you up with a main dealer giving a fleet discount. If the saving is close to a grand a day trip to pick it up and a nice relaxing drive while bedding the car in can be most fun:) So you'd get the ferry either to Liverpool/Stranraer and back again -but as its the car you're after you'd also be able to test it out on a "proper" motorway so that it beds in I've used Ukcarbroker and can recommend them highly for the VWs..

I assume she lives in the south as shes talking about import tax?

property.advert

Remember that you have to compare the offer against the best new price you can get, not against dealer list prices !

Your warranty will be reduced, you have another owner on the log book, some replaceable items such as tyres have already been used, the car tax is running out, perhaps some damage, abused if a previous Channel Islands hire car, the list goes on and on. Put it in Excel and attribute values to each point you can think of. Then you have a number to work with.

I sure wouldn't accept 10%.

Kilty_2

pgilc1 wrote: »

I assume she lives in the south as shes talking about import tax?

Nope she lives in the North, but someone suggested buying a car from the Republic and taking it over (not from the UK) - there will I imagine be import taxes involved there. (although Arnold Clark do it with the Nissan Tiida and sell them cheaply, so I don't know to what extent there would be taxation)

jenny-wren

There's a 4-5 month waiting list for a new car, I think that's the problem. The dealer thinks that means he can charge a premium, but it's a premium I'm not prepared to pay. A 3% discount on what the car would have cost at the time it was bought new, or 11.5% off what it would cost us to buy new now. For us to later sell on the car with 2 owners on the book, I don't think so!

motorguy

jenny-wren wrote: »

There's a 4-5 month waiting list for a new car, I think that's the problem. The dealer thinks that means he can charge a premium, but it's a premium I'm not prepared to pay. A 3% discount on what the car would have cost at the time it was bought new, or 11.5% off what it would cost us to buy new now. For us to later sell on the car with 2 owners on the book, I don't think so!

i would definitely be trying mainland dealers then.

property.advert

jenny-wren wrote: »

There's a 4-5 month waiting list for a new car, I think that's the problem. The dealer thinks that means he can charge a premium, but it's a premium I'm not prepared to pay. A 3% discount on what the car would have cost at the time it was bought new, or 11.5% off what it would cost us to buy new now. For us to later sell on the car with 2 owners on the book, I don't think so!

Are you sure the dealer's contract with the manufacturer allows him the ability to charge a premium to the list price ? I would be very surprised if it does.

jenny-wren

OK, here's the story.

The dealer buys a new car. They use it as a demo car for 6 months and then, when it reaches the end of it's useful life as a demo model, they decide to sell it. This is where I come in.

The dealer knocks 3% off the price they paid for it (assuming they paid full list OTR price) and offers to sell it to me. VW put their prices up since the car was new hence it initially appears as a good deal i.e. 10% what it would cost me to buy new now. But it's not new. I can order the same model (new) online for the same price as the ex-demo. But, I have to wait 4 months for it. There's the dilemma. Nice car, over inflated price.

Looks like it's time for me to walk away and look for a different model.

property.advert

jenny-wren wrote: »

OK, here's the story.

The dealer buys a new car. They use it as a demo car for 6 months and then, when it reaches the end of it's useful life as a demo model, they decide to sell it. This is where I come in.

The dealer knocks 3% off the price they paid for it (assuming they paid full list OTR price) and offers to sell it to me. VW put their prices up since the car was new hence it initially appears as a good deal i.e. 10% what it would cost me to buy new now. But it's not new. I can order the same model (new) online for the same price as the ex-demo. But, I have to wait 4 months for it. There's the dilemma. Nice car, over inflated price.

Looks like it's time for me to walk away and look for a different model.

That's just a variation on the "save £5000 on this car" rubbish when what they are selling is a 3 year old car for £10,000 which they bought for £13000 but which costs £15000 new.

It is not a true comparison.

motorguy

jenny-wren wrote: »

OK, here's the story.

The dealer buys a new car. They use it as a demo car for 6 months and then, when it reaches the end of it's useful life as a demo model, they decide to sell it. This is where I come in.

The dealer knocks 3% off the price they paid for it (assuming they paid full list OTR price) and offers to sell it to me. VW put their prices up since the car was new hence it initially appears as a good deal i.e. 10% what it would cost me to buy new now. But it's not new. I can order the same model (new) online for the same price as the ex-demo. But, I have to wait 4 months for it. There's the dilemma. Nice car, over inflated price.

Looks like it's time for me to walk away and look for a different model.

Have you checked the price of similar used cars through volkswagens website for mainland dealers? Or autotrader?

Whats the exact car?

motorguy

Also, bear in mind that the dealer will have got a hefty discount for registered cars as demos (which they are obliged to do)

I think you have to not look at the price as it was six months ago, but the fact that you can get this ex demo one for 10% less than the price of a new one.

For what its worth i had a similar problem with BMW a few years ago - they were trying to sell me a year old car for the same price that i was ultimately able to buy a brand new (and facelifted) one for with some hard haggling.