The problem of trading in 07 TDi A4

Rowley Birkin QC

Looking for some advice to pass on here lads, all thoughts and suggestions appreciated.

My Dad bought a 1.9TDi A4 at the beginning of 2007 so it is on the old tax regime. Now he wants to trade it in and come up to a new or nearly new 2.0TDi A4.

The garage he purchased the 07 from are looking for €15k for the nearly new and nearly €20k for the brand new car. They are the first prices quoted without any haggling or bargaining involved so I expect they would fall a bit. When he bought the car in 07 the salesman reckoned he would be able to buy a new one in 2009 for approx. €10k.

Now he obviously doesn't want to part with that much cash to come up two years but is concerned that he will be stuck with a car on the old tax system and that no-one will take it off his hands for any kind of decent wedge of cash in a year/18 months.

So what do you think, take the hit now or run the risk of being left with the car indefinitely and on the old tax system?

Try to sell privately and go to the garage with cash?

Cheers in advance.

TomMc

Sounds more penny wise and pound foolish. The annual road tax on a 1.9 is by no means outlandish. Over 2 litres and 3.0L + is another story The new lower CO2 tax rates on diesels will probably go up in the near future as well.

600 - 150 odd = 450 per year. Even after 5 more years this is only 2.25K compared with 15-20K now. He should really keep the car he has till it falls apart or at least doesn't owe him anything.

Lex Luthor

a lot has changed since the beginning of 2007...

meathstevie

Unless there's anything wrong with A4 keep it. Why would you want to change a perfectly good car for another perfectly good car and loose a lock of money in the proces ??

Seweryn

TomMc wrote: »

600 - 150 odd = 450 per year. Even after 5 more years this is only 2.25K compared with 15-20K now. He should really keep the car he has till it falls apart or at least doesn't owe him anything.

Well said... Sometimes people look to short ahead. If you want to throw away 15k just to replace a perfectly good car with another one more less the same one, I think you should think again.

EPM

If he really wants to change 15k ish doesn't sound too bad to me all things considered. I'd still probably stick with what I had though

bazz26

The Celtic Tiger days of trading up two years for small money are well and truely over.

Remember he is not just trading up two years or from the old tax system to the new, he is also trading the old model A4 for the newer model, going from the ancient 1.9 TDi to the new 2.0 TDi and the dealer has to try and sell his 07 close to the price that somebody can import one for from the UK for.

rabbitinlights

Why on earth did he buy a 1.9 in 2007?

imeddyhobbs

Seems that he will take a hit if he tries to sell/trade it.

Trade it in!Too much hassle trying to sell a car these days

-Chris-

rabbitinlights wrote: »

Why on earth did he buy a 1.9 in 2007?

I don't understand the question. What's wrong with that?

imeddyhobbs wrote: »

Seems that he will take a hit if he tries to sell/trade it.

Trade it in!Too much hassle trying to sell a car these days

You're advising the OP's dad to take the financial hit and just plough ahead??

You're not really Eddie Hobbs at all, are you? :D

Drummerboy08

-Chris- wrote: »

I don't understand the question. What's wrong with that?

We all know only the 2.0TdiddlyI was suitable to convert to an RS4.

rabbitinlights

Drummerboy08 wrote: »

We all know only the 2.0TdiddlyI was suitable to convert to an RS4.

Of course!!

I don't understand why you would pick the 1.9 over the 2.0 if you drove both.

What would the sticker price difference have been between the two in 2007?

R.O.R

rabbitinlights wrote: »

Of course!!

I don't understand why you would pick the 1.9 over the 2.0 if you drove both.

What would the sticker price difference have been between the two in 2007?

March 2007 price list:

Audi A4 1.9Tdi Ltd Edition - €39,330
Audi A4 2.0Tdi Ltd Edition - €43,220

Close to €4,000 is a big enough difference in my eyes to go for the tractor engine.

Ltd Edtion just meant you got the armrest and chrome trim as standard over the usual boggo spec. Most A4's coming in to Ireland were specced that way anyway, but you had to pay the €500 ish for the 2 extras.

unkel

bazz26 wrote: »

The Celtic Tiger days of trading up two years for small money are well and truely over.

Remember he is not just trading up two years or from the old tax system to the new, he is also trading the old model A4 for the newer model, going from the ancient 1.9 TDi to the new 2.0 TDi and the dealer has to try and sell his 07 close to the price that somebody can import one for from the UK for.

That sums it up nicely. @OP - if your dad wants the new car, he'll have to fork out well over €15k no matter how hard he'll negotiate. If he's willing to part with the money, good luck to him and his new car

Drummerboy08

The thing is, some people will change their car,no matter what.

I had an old neighbour a few years ago, who always bought his new car every year. I only seen him a few months ago, in a 09 Mazda 3. No doubt he'll be buying again come january.

If the OP'd father wants a new car, I dont think 15k is a bad price to change (I'm assuming its a new 2.0TDI 120 LE). It's all what he wants to do.

Rowley Birkin QC

bazz26 wrote: »

The Celtic Tiger days of trading up two years for small money are well and truely over.

Remember he is not just trading up two years or from the old tax system to the new, he is also trading the old model A4 for the newer model, going from the ancient 1.9 TDi to the new 2.0 TDi and the dealer has to try and sell his 07 close to the price that somebody can import one for from the UK for.

That's exactly the issue at hand.

You've listed all the factors that are in play,

• The new engine.
• The new tax system.
• The fact that A4s streamed across the border in the last three years knocking a fair chunk of value off the trade in value of the car regardless of the economic situation.

The problem in his eyes is that his car is depreciating far more rapidly than expected so perhaps the best thing to do is take the hit and eliminate some or all of the issues above in the process. So I suppose basically I'm wondering what those posters who work in the trade would recommend if it was their own car?

Running the car into the ground might be an option to some but it's a non-runner here. Also, he bought a 1.9 TDi in 2007 because if met the requirements he had and the extra €4k for the 2.0TDi was too much at the time.

Cheers.

R.O.R

Depreciation is highest in the first year, still steep in the second year and then begins to level out a bit from the 3yr onwards.

I would never recommend a 2 year turnaround on cars as you'll get creamed for depreciation - unless mileage is ridiculous then maintenance might be better for 2 years than 3.

What's the current mileage and what's the annual mileage? Unless it's over 120,000km now and he's still doing 60,000km per annum, he's best to hold off changing for another 2 years.

Rowley Birkin QC

R.O.R wrote: »

Depreciation is highest in the first year, still steep in the second year and then begins to level out a bit from the 3yr onwards.

I would never recommend a 2 year turnaround on cars as you'll get creamed for depreciation - unless mileage is ridiculous then maintenance might be better for 2 years than 3.

What's the current mileage and what's the annual mileage? Unless it's over 120,000km now and he's still doing 60,000km per annum, he's best to hold off changing for another 2 years.

Current mileage is somewhere around 90-100k so annual is around 45k I'd imagine, I'm away from home at the minute.

But will the car be completely worthless in 2 years time, what with the three factors I mentioned above coming into play in a bigger way with the A4 given that there is simply so many of them in the country and close at hand over the border?

Cheers for the input.

R.O.R

OK, if he's at close to 100,000 already and he's being given cost to change of €15k then it's probably best to change to take advantage of the road tax changes.

€15k to change is valuing the car now around 18k. A 4 year old car with 200,000km (or close enough) will be worth around €3k so there's €15k of depreciation in 2 years, plus more road tax, slightly higher fuel bills and he's about to have to do the timing belt.

Whether he'll get away with just €15k depreciation in the next 2 years on a new model, is another matter.

mickdw

Why not TRY to sell it privately cheaply and then buy a 2009 A4 in 2010 with a straight deal.