Recall Depreciation - Sell ?

[Candyman]

Exactly! In fact, Toyota tops the charts for recalls and look what people say about them... No manufacturer is perfect, they all have issues, unfortunately VW is going through a rough-patch in terms of publicity.

The thing is, many would say that VW recall counts are lower than they should be as they deal with issues in other ways.

The thing is, putting aside the DSG issues, injector issues, engine meltdowns etc, it is VW's approach (or lack of) to issues via recalls that sucks.

[BluChris]

And customer service more generally. Let's face it, would there be so many thriving independents if VW customer service was exemplary? No, I am not singling VW out as I recognise there are plenty of other brand specialists too and they probably started with similar motivations and market potential. Just saying that I suspect if VW dealer service (and VAG backup for dealers) was up to scratch then much of this could have been avoided. Look at the comments generated here and in the media: lots saying the same thing, 'I don't care if the car has issues but I do care how those issues are being addressed'.

[Barracuda]

The thing is, many would say that VW recall counts are lower than they should be as they deal with issues in other ways.

The thing is, putting aside the DSG issues, injector issues, engine meltdowns etc, it is VW's approach (or lack of) to issues via recalls that sucks.

True. You have a point. The way VW handled this recall was appalling and they're certainly paying for it now. I was speaking more in terms of the number of recalled vehicles, in which case, Toyota tops the charts by a long shot. I feel this speaks for the level of attention to detail and research they put into their vehicles. It's worrying when a manufacturer has to recall that many vehicles. But that's just my opinion...

[brimway]

You just can't go by that, I mean if the previous model had some faults or many faults, that the coming model has to have many faults too. The first Touareg had quite a few issues but the Touareg2 was practically faultless. Certainly, if there were so many issues with VW as you list, there would be no waiting list for GTI's and VAG holding yards would be full of unsold cars (that's why I don't take the reported slum in sales too seriously - just another media sensation).

Vfacts figures don't lie

[Diesel_vert]

Because of the manner and circumstances in which recalls are issued, I don't think you can infer any sort of solid and clear relationship between the number of recalls a manufacturer initiates and the number of faults a vehicle may or may not have.

For instance, to imply that Toyotas represent the essence of unreliability based on its high vehicle recall count, is as silly as saying Volkswagens represent the epitome of troublefree motoring based on its low vehicle recall count.

Whats peoples thoughts on this... would you buy a car that had a national recall?

It'd be an exercise in futility to find a major vehicle manufacturer that hasn't issued a recall at one stage or another during its operation.

[ill0gitech]

Yes, the second hand car dealers (any car dealers) are in the business to make money and they will use any opportunity to max. their profit, just like many other businesses or even individuals do.

Agreed. These guys are out to screw you over to maximise their profits, and will use anything they can to screw you further.

You can take a ****ty looking, dirt-covered, maccas-rubbish filed car to a dealer and get offered $7k, wash it, clean it shine it up bring it back the next day - maybe $8k, maybe $6k - it depends. 2 days later it will be detailed, and on offer for a boatload more than you just sold it to them for.

I'd hardly use the trade-in-price as an accurate version of where the market sits.

Drive is showing (for Sydney dealers)
2010 GTI w/30k on it for $22k
2010 Trendline w/46k for $16.9k
2012 Trendline w/26k for $16k
2010 77tsis w/42k and 773 for around $17.8k

It's a little all over the place

[Bassik]

Agreed. These guys are out to screw you over to maximise their profits, and will use anything they can to screw you further.

You can take a ****ty looking, dirt-covered, maccas-rubbish filed car to a dealer and get offered $7k, wash it, clean it shine it up bring it back the next day - maybe $8k, maybe $6k - it depends. 2 days later it will be detailed, and on offer for a boatload more than you just sold it to them for.

I'd hardly use the trade-in-price as an accurate version of where the market sits.

Drive is showing (for Sydney dealers)
2010 GTI w/30k on it for $22k
2010 Trendline w/46k for $16.9k
2012 Trendline w/26k for $16k
2010 77tsis w/42k and 773 for around $17.8k

It's a little all over the place

Thing is I'd ask for more then 22K.

[readerr0r]

Thing is I'd ask for more then 22K.

Not for a 2010 GTI you would

[Candyman]

Not for a 2010 GTI you would

Our new neighbour sold his for $28k privately (with highish kms) and bought a new GTI today (with DSG) and is very happy.

[ill0gitech]

Not for a 2010 GTI you would

Keep in mind, this is likely dealers who have margins that they can stand to move around in.
Let's say some of the recent offers for trade in are what these guys paid. If they paid $7k for a polo that they are selling for $22k they are making a profit from ~$9k -> $22k. (assumes rego, CTP, and detailing fees, warranty etc. not factoring in dealer overheads or stamp duties))
Hell, even if they bought it for $18k they can still potentially make a profit at $20k - it just depends on how much they are willing to live with as the cut and how much they think they can get from the market.

If you're a private seller, you know essentially working at a loss - it's just how big a loss you're able to afford/live with.