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Discussion Starter · #1 ·
I paid ?8000 for my 40k 2000 (w reg) 5door 1.8t last feb (11months ago) and now you can pick my year car up for between ?5000 and ?5500 with similar milage to mine (52'000 miles).

So in 11 months ive lost ?2500 (if i was to sell now)

how come the golfs have dropped in price by soo much[:(]

not long and it'll be in chav territory[:'(]
 

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Discussion Starter · #4 ·
Something called....The MK5 GOLF!
yup, but the mk5 golf gti is still very expensive ....... there arent many mk4 golf gti's between the 12k and 18.5k mark. Seems like the only golf inbetween that bracket at the mo is th R32.

downturn in second hand market perhaps?
 

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Discussion Starter · #5 ·
Something called....The MK5 GOLF!
And the fact MK4's were one of the most popular hatchbacks, thus VW flooding the market with 'em hasn't helped much!

I blame reps for buying them [:p]
but that doesnt explain whats happend in the last year though...... like i said i paid 8k for mine and a similar car now is worth 5 to 5.5k. 8k was the going rate for a low milage 1.8t when i bought mine, so i didnt pay over the odds.
 

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Sounds like you got stung on your price mate, not a sudden drop...

I only paid ?9500 for my 2000 plate 1.8T 3 years ago, with 30k on it, so ?8000 seems a lot for what you paid for yours - is it well spec'd?
 

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Discussion Starter · #7 ·
Sounds like you got stung on your price mate, not a sudden drop...

I only paid ?9500 for my 2000 plate 1.8T 3 years ago, with 30k on it, so ?8000 seems a lot for what you paid for yours - is it well spec'd?
erm................. nope[:'(]......... just in mint condition.

all the ones i viewed for 6-7k looked batterd to be fair
 

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?2,500 in nearly a year sounds like normal depreciation to me? And with
the MKV, the MKIV now looks old and dated to the mass market so this
will speed the decline. The only car I know of that truly bucks the
depreciation trend is the Mini - I've bought three in the past two
years and they are unbelievable for holding their value.
 

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I wouldn't worry too much unless you're thinking of changing the car and there's a shortfall in any finance. If your happy with it and intend to keep it don't worry about what it's worth.

I have seen a few mkv gti's for sale around the 16k mark recently so they are coming on to the market.
 

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Maybe I got a deal then!!

I got stung on my Mk 3 GTI - paid about ?7000 for it just as the Mk4 came out- in 3 years it was worth about ?2500 and I owed about ?4000 on the finance - ended up handing it back and walking away.

Thing is, looking at your list of planned mods, it looks like you are going to keep the car for a bit, so for now it does not really matter - if you are keeping for 2 or 3 yrs I would imagine that the price drop will even out, especially if you are going to keep it in good nick...
 

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?2,500 in nearly a year sounds like normal depreciation to me? And with the MKV, the MKIV now looks old and dated to the mass market so this will speed the decline. The only car I know of that truly bucks the depreciation trend is the Mini - I've bought three in the past two years and they are unbelievable for holding their value.
Porsche 911 and Boxster do well here also - both seem to buck the usual 'supercar' trend that they should only be bought new, or not at all - not surprising considering they are both phenomenal (sp?) cars and will also survive as an everyday runner without collapsing under the strain.
 

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?2.5k drop on ?8k is around 30% which is about right.  Don't forget though that if prices drop 30% over the next 12 months that would be only ?1,650 in money terms.  You brought a 5 year old car and paid 40%(ish) of it's original value.  Now 6 year old cars are about 25% of their original value, which is around ?5k.
 

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Discussion Starter · #13 ·
Always been lucky when it comes to depreciation.

My previous car (206gti) lost ?500 in the 2 years that i owned it (bought from my mum for cheap)

My road bike i sold @ christmas actually increased in value. I got ?600 more than i payed for it the year b4.

Hopefully the lupo sport i bought the missus b4 crimbo will hold its value.

?2500 does seem alot to lose in 11 months though....................
 

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Almost every car <5 years old seems to be depreciating quickly imo; even supposedly desirable models. I know a guy who ( just before Xmas) bought a mint 53 reg Bmw 320CD with the M-Sport spec. It's done 25K, he paid ?17,500 and it cost ?29,000 new with the extras fitted. That's a drop of ?11,500 in 2 years on a rare desirable model.
 

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People seem to be confusing value in ?'s with percentages.

Take for example that a mkv Gti will be worth 50% of its original value after three years. If the car originally cost ?20k then it would be worth ?10k. Now, if the value were to fall by another 50% in the fourth year the loss of value in ?'s would be ?5k although the percentage is the same.

A mate of mine has real problems with understanding the diference between %'s and value's. He was looking at a 3yo A8 about 18 months back and couldn't get over that its value was ?15k, about 35% of its original value of ?45k(ish) - it was a v6. I tried explaining that the Omega he'd owned previously had lost more in percentage terms than the A8 but because the original value of the Omega was so much lower then the ?'s loss was so much lower but he couldn't get it. I didn't even attempt to explain compound interest to him or that imperial measurements aren't decimalised!!

The example of the BMW shows a loss of 35%(ish) over two years which isn't excessive it just seems a big loss because the original value in ?'s was high.
 

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i think its about the best time to buy a mk4 golf at the moment, cos they have had a big price drop since the mk5 but now they are levelling out. i paid 5k for my 99 t plate gti with 40k 8 months ago and from looking in autotrader i can still get at least ?4500 for it.
 

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?2.5k drop on ?8k is around 30% which is about right. Don't forget though that if prices drop 30% over the next 12 months that would be only ?1,650 in money terms. You brought a 5 year old car and paid 40%(ish) of it's original value. Now 6 year old cars are about 25% of their original value, which is around ?5k.
A 30% drop in a year on a used car is not even nearly right! It's hugely excessive! A new car will lose about 30% in it's first year (although VW's tend to do better than that) but I'd say about 15% per year is normal on a used car.

Sounds like a combination of paying a bit over the odds for it and bad timing as the mkIV market has fallen with the mkV becoming more popular.
 

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Should have bought a diesel, they seem to have much stronger residuals. By the way I paid ?10k for a 51 reg GT TDi 130 9 months ago with 27k on the clock and my mate sold his W reg GTi Turbo for ?6500 at the same time with 75k on the clock.

?8k sounds expensive mate, sorry!
 

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My comment was more to identify the difference, and relationship, between % and value than an accurate depreciation %. Cars depreciate slower (in vlaue) as they get older but the % remains constant (to a point). So losing ?2.5k in a year on a 6 year old car who's original value was ?20k it has depreciated 12.5% however, losing ?2.5k against the purchase price of ?8k it is nearer 30%. So it really depends on where you start your depreciation %.

15% a year from new, though, is too low a figure. That would mean after three years a mkv gti brought for ?20k would still be worth 61.5% of its original value (?12,300.00) which, even this site full of enthusiasts have to admit, is unrealistic. Special and rare models (R32) may achieve this but the 'regular' models would not.

As with all things though, it is whether you are happy to pay the price for that car at the time. There will always be someone who paid more/less for a similar car. I wouldn't lose sleep over it as I intend to keep my car for a long time (6+ years).
 

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Regards you comments on the GTI- it wouldn't be worth 61.5%, it would be worth 51% (~?10,100) because it loses 30%ish in the first year and then about 15%ish in the years affter that. About 50% is what Golfs are predicted to retain after 3years.

Your comment about where you start the depreciation doesn't really stack up with the rest of what you say either. You say "Cars depreciate slower (in vlaue) as they get older but the % remains constant (to a point)" which is correct.

This means you have to take a % of it's current value and subtract that to get what it will be worth in a years time. The original purchase price has precisely hee haw to do with it.

So losing 2.5k on an 8k car is 30% (as you say) which is horrendous!

I absolutely agree with you when you say that it is % and not value that we should be looking at, I just had issues with you saying that 30% sounded about right for a second hand car.
 
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