New R32 purchase - depreciation no-no?

[bungle]

Thinking about buying a new R32. Do you think this is a no-no given the potential depreciation? Would probably keep it for about 2 years, in which time the mk6 would be out, probably an R36, and the road tax on it could be any number the chancellor feels like slapping on it! I can live with the mpg / insurance, but the depreciation has the potential to easily be bigger than those 2.

What do you think? Any constructive advice welcomed! Cheers.

[treacle]

hi.

best thing would be to look at the previous R32 and see what the values are doing there. They go for about 16k at VW dealers and they are 3 years ish old now. The R32 will always be a rariety so it should hold value pretty well.

I considered the R32, but tax and running costs put me off, so went for a Edition 30 GTI...which should hold its value pretty well (i hope), performance i have heard from a few seperate sources to be on par with R32. Lighter front end as well so better handling, engine wont sound the same though...

I suppose what you have to really remember is that all cars depreciate, especially new ones. So what ever you spend your 25-30k its going to be worth much less in two years.

[D1MAC]

I wouldn't necessarily judge Mk5 depreciation on that of the Mk4. For some reason the earlier version is considered to be much more special and has a certain following, which always helps used values.
Anyways, having said that, Mk5s seem to be holding up ok at the moment and it would seem that there probably won't be that much in it depreciation wise between the two flavours. If I was guessing, I would say a Mk5 would be worth anywhere between about £13k-£16k after 3 years, depending on what happens re tax, R36 etc

Edited by D1MAC on Monday 28th May 00:54

[Biggriff]

If dealers are putting three year old R32's at £16k you would be looking to trade at between £12k-£13k and that's only if the spec is right.

No leather = less, No sat nav = less etc etc

The best car is a used car, but if you must have a new one go for Gti. Better package and better residuals. I tested both and apart from the v6 warble the Gti walks it.

An edition 30 is however a pig to source as they are very limited supply, but if you can wait will be worth it come trade in time.

[kmpowell]

I've been offered £19.5K cash or £20.5k p/x for mine at my dealers...

http://pistonheads.com/sales/166354.htm

That should give you some idea - although you should beat depreciation and buy mine, save yourself a packet!

Edited by kmpowell on Monday 28th May 19:38

[baz1985]

kmpowell said:

I've been offered £19.5K cash or £20.5k p/x for mine at my dealers...

http://pistonheads.com/sales/166354.htm

That should give you some idea - although you should beat depreciation and buy mine, save yourself a packet!

Edited by kmpowell on Monday 28th May 19:38

you've been offered good money imo.

I know someone who has just bought a UK car 06/06 R32 5DR 5k miles (Manual, Silver, Recaro Sport Leather, DVD Nav-6CD, Cruise, Parking Sensors, Winter Pack, Lux Pack 1) for £21k.

[kmpowell]

baz1985 said:

kmpowell said:

I've been offered £19.5K cash or £20.5k p/x for mine at my dealers...

http://pistonheads.com/sales/166354.htm

That should give you some idea - although you should beat depreciation and buy mine, save yourself a packet!

Edited by kmpowell on Monday 28th May 19:38

you've been offered good money imo.

I know someone who has just bought a UK car 06/06 R32 5DR 5k miles (Manual, Silver, Recaro Sport Leather, DVD Nav-6CD, Cruise, Parking Sensors, Winter Pack, Lux Pack 1) for £21k.

I got offered standard money, it is your 'freind' who has got themselves a bargain. THIS is the cheapest R32 in the dealer network at the moment. The car you have listed above is £26k+ forecourt money easily.

Getting discount off used R32's is difficult, and dealers are bending over backwards to buy them because of their allocation limits, hence the strong prices.

Edited by kmpowell on Monday 28th May 20:37

[baz1985]

kmpowell said:

baz1985 said:

kmpowell said:

I've been offered £19.5K cash or £20.5k p/x for mine at my dealers...

http://pistonheads.com/sales/166354.htm

That should give you some idea - although you should beat depreciation and buy mine, save yourself a packet!

Edited by kmpowell on Monday 28th May 19:38

you've been offered good money imo.

I know someone who has just bought a UK car 06/06 R32 5DR 5k miles (Manual, Silver, Recaro Sport Leather, DVD Nav-6CD, Cruise, Parking Sensors, Winter Pack, Lux Pack 1) for £21k.

I got offered standard money, it is your 'freind' who has got themselves a bargain. THIS is the cheapest R32 in the dealer network at the moment. The car you have listed above is £26k+ forecourt money easily.

Getting discount off used R32's is difficult, and dealers are bending over backwards to buy them because of their allocation limits, hence the strong prices.

Edited by kmpowell on Monday 28th May 20:37

But I didn't mention that it was an auction purchase.

Check the Glass's Guide and CAP and you'll find that £21-22k is the right level for a 06/06 one with DVD Nav.

[kmpowell]

baz1985 said:

But I didn't mention that it was an auction purchase.

Hardly a good demonstration for a used value then is it.

CAP is irrelevant when it comes to R32's - demand is outstripping supply for used examples in the dealer network, hence the strong residuals and market prices. My dealer has rung me 4 times this week wanting to know if I have made a decision on mine yet. He desperatly wants a good R32 for his forecourt, but cant get hold a decent one for love nor money! All the R32's he has seen or been offered don't have leather, and dealers don't buy R32's without leather, simply 'cos they don't sell.

Edited by kmpowell on Monday 28th May 21:25

[baz1985]

kmpowell said:

baz1985 said:

But I didn't mention that it was an auction purchase.

Hardly a good demonstration for used values then is it.

Edited by kmpowell on Monday 28th May 21:23

Agreed, not for forecourt used values, but for trade.