How much did you pay for your Tiguan?

**Orpheus2k** · 26-11-2018, 04:18 PM

Cars normally depreciate 10% every year so in 3yrs time the car would depreciated close to 25-30%, 4yrs 35-40%, 5yrs 45-50% (all depending on condition, mileage, options etc.

Black Wolfsburg 2019 with panoroof on order

**rontig** · 26-11-2018, 04:20 PM

Ok so seems VW devalues it quite a bit. They are advising on the 59k purchase, they would value the car at 27k after 4 years. Going on 30% devaluation it looks to be around 40k. That sound right?

**iampivot** · 26-11-2018, 04:35 PM

After 4 years it would be 40% devaluation, if it was linear. Devaluation is never linear though, it depreciates the most the first year, then less. In addition, VW would want to be able to resell the car and would calculate in their cost / profit when reselling it.

**Dutch77** · 26-11-2018, 05:48 PM

I'd say VW are being pretty generous.

A four year old Tiguan 155TSI R Line (as a proxy for today's vehicles) makes a 38% trade residual. Applying that to the $59k, which is wrong as this includes all the on roads, spits out a $22-23k figure. It would be even less based on the vehicle cost.

As to whether it is worthwhile it depends on what your plans are for the vehicle, and what the lease has been priced at in the first place.

The ATO has an old ruling that sets the minimum lease residuals that are permitted and are used by most lease companies for business finance.

**Orpheus2k** · 26-11-2018, 06:16 PM

I’m pretty sure for us car owners we don’t want trade prices as they are designed to be low to favour the dealers.
Would rather take into account market value which is true value of a car.

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Black Wolfsburg with panoroof arriving Jan 2019

**Dutch77** · 26-11-2018, 06:48 PM

You're usually welcome to go and sell it for more, it's merely a guaranteed 'hand back' price as long as you meet the relevant requirements for mileage, condition, servicing, no mods etc. and pay the usual finance premium which underwrites the 'insurance' collar VW will write on it.

Trade prices are what they are, but anyone who thinks their four year old everyday car is going to be worth much more are kidding themselves. They are a market price - the wholesale market price - so that the dealer can actually clean the car up, cover the statutory warranty, pay their overheads and stay in business.

**tigger73** · 26-11-2018, 06:50 PM

You're not locked into handing it back. You can sell privately if you want. All you have to do is pay out the "agreed value" on the car.

If your car gets valued at more than the agreed value then they'll refund the difference. If it's less then the finance cops it. If you drive more km than you agreed then there's significant penalties so you need to get it right when signing up.