Losing money on trade in

Rallycrazygirl

Hi
Just want be of advice I bought my car less than a year ago, was 2 years old when I bought it but now need something bigger.
I went into garage where I bought my car and found something I like.
When I bought the car said even in 2 or 3 years would only loose small money on it. So bought it.
When I got prices for what car is now worth the offered me 6000 less than what I paid for it less than a year ago. Totally shocked. There's a years tax on it, four brand new high spec tyres , just serviced. Also no marks on it anywhere body alloys etc. sales person said its immaculate so why such a big loss. Is this normal to happen.

Cee-Jay-Cee

Rallycrazygirl wrote: »

Hi
Just want be of advice I bought my car less than a year ago, was 2 years old when I bought it but now need something bigger.
I went into garage where I bought my car and found something I like.
When I bought the car said even in 2 or 3 years would only loose small money on it. So bought it.
When I got prices for what car is now worth the offered me 6000 less than what I paid for it less than a year ago. Totally shocked. There's a years tax on it, four brand new high spec tyres , just serviced. Also no marks on it anywhere body alloys etc. sales person said its immaculate so why such a big loss. Is this normal to happen.

That was a sales pitch and unfortunately was a lie. What car make/model is it?

€6000 is quite a depreciation but probably not far off what any reasonably new car will depreciate by.

Tax and tyres are not really considered, you would have got the same value with no tax and 4 worn tyres.

Rallycrazygirl

I've looked up same car model as mine online in various garages and there selling for 4500 to 5000 more than I was offered and all had at least 50 to 60 thousand Kms more than mine. So totally confused.
He told me I was getting good prize considering there was new tyres etc on it

Henry Ford III

Go ask elsewhere. You might get a better price.

lawred2

Rallycrazygirl wrote: »

Hi
Just want be of advice I bought my car less than a year ago, was 2 years old when I bought it but now need something bigger.
I went into garage where I bought my car and found something I like.
When I bought the car said even in 2 or 3 years would only loose small money on it. So bought it.
When I got prices for what car is now worth the offered me 6000 less than what I paid for it less than a year ago. Totally shocked. There's a years tax on it, four brand new high spec tyres , just serviced. Also no marks on it anywhere body alloys etc. sales person said its immaculate so why such a big loss. Is this normal to happen.

and you believed them?

Well lesson learned I suppose. You could always try taking it elsewhere.

johnb25

Stick it up on donedeal.ie and see what you can get for it.

Richardsons Muff

sell privately...

but why not give the spec and what you are being offered and posters can give you their tuppence worth on if it is reasonable or not?

Rallycrazygirl

Thanks for replies. Knew I wouldn't get what I paid for it. Was expecting maybe 3000 of a loss but 6000 is crazy.
Know they have to make a profit but they made money on first deal less than year ago.and want to make 6000 on trade in plus whatever they made on other car.
Also sales rep said they'd have to do nothing to car as serviced, new tyres, tax on it. And that he would put it up on forecourt and expected quick sale on it. Also I still have 1 year warranty left on it so there's no extra money to cover warranty.

Bandana boy

Certainly worth trying a few other dealers and see if they will do you a better deal.
Every Car salesman is trying to maximize what he makes on every transaction and it looks like he misjudged what you would accept on this trade .Vote with your feet and Shop around .

millington

What car is it and what did you pay for it?

You may have overpaid in the first place and you be getting ripped off a bit now. We can't guess without numbers.

Rallycrazygirl

its an Audi A3 hatchback it's the top level one has all the extras , sports features, alloys, sat nav, fogs all round etc.
trading for an Audi A3 saloon.

Henry Ford III

Have a look at the regular sales sites such as d.d. and see what a similar car to yours is making. Remember there's sometimes a big difference between asking prices and selling prices.

Rallycrazygirl

I paid market value on first one didn't over pay on it, shopped around to get a feel for prices.
Also like to point out family dealing with this dealership long time , my current car is 3 rd one I have bought from here. Always fair on prices up to now I think

Henry Ford III

Rallycrazygirl wrote: »

I paid market value on first one didn't over pay on it, shopped around to get a feel for prices.
Also like to point out family dealing with this dealership long time , my current car is 3 rd one I have bought from here. Always fair on prices up to now I think

Shop around again so.

Your family history with a dealership has no value unfortunately.

Atlantic Dawn

Are you getting 70% of the price that the dealer is selling the same car for? Normally on a car 50% loss in value can be expected in 3 years.

Marcusm

So you have I guess a 2-3 year old car max? Brexit is one significant even driven reason for fall off in prices. Devaluation of GBP means Irish second hand prices of relatively young cars had to fall.

ironclaw

OP, you should read up on the time value of money. Cars are depreciating assets. You can pretty much write off half the value of the car each year you have it after 2 to 3 years from new. Also, a dealership isn't going to give you next or near what they are selling them for, why should they? Difference on the trade in versus the sale is the price you pay for not being willing (or able) to sell privately and the cost they need to stump up to have an asset (Which is continuously depreciating) on their forecourt. They then have stand behind the car and pay any costs associated with it down the line (Something as a private seller you don't have to do)

You've paid 500EUR per month to have the car, probably only slightly more than a PCP or hire purchase agreement. You changed your mind and need a different car, there's a price associated with that change of mind which isn't the fault of the dealership.

Effects

Rallycrazygirl wrote: »

Also like to point out family dealing with this dealership long time , my current car is 3 rd one I have bought from here.

Dealers don't really care about how long you have been dealing with them. They probably think they can squeeze more out of you than a new customer walking in the door.

blindside88

OP if you give some figures we may be able to help you a little more.
1) what did you pay for the car
2) what is the cost of the new car
3) what are they giving you on trade in against the new car

This will allow people to give you a better steer. It's probably be a tough sell privately at the price range I imagine you're aiming for, in saying that it's still something worth considering

spyderski

It would help if you gave us some real details on the car. How old it was when you bought it, Year, engine size, petrol/diesel etc. Other than that its a "how long is a piece of string" question..

Rallycrazygirl

Rallycrazygirl wrote: »

its an Audi A3 hatchback it's the top level one has all the extras , sports features, alloys, sat nav, fogs all round etc.
trading for an Audi A3 saloon.

Will an A3 saloon be that much bigger than an A3 hatchback?

bazz26

Marcusm wrote: »

So you have I guess a 2-3 year old car max? Brexit is one significant even driven reason for fall off in prices. Devaluation of GBP means Irish second hand prices of relatively young cars had to fall.

It's amazing though how Brexit doesn't seem to effect forecourt prices as much as it does trade-in values. Some dealers seem want their bread buttered on both sides. In saying that expecting to only lose 3k on the car a year down the road is unrealistic even before the Brexit card was bantered about.

OP as said shop around. Like insurance companies there is seldom reward for being a returning customer, go where you get the best deal.

coylemj

OP can shop around all she likes but the fact is that she bought a 2014 car last year and in the meantime, thousands of 2015 and 2016 cars have been imported from the UK thanks to the drop in sterling, that has severely affected the secondhand value of cars like hers.

It's as if every existing Irish car suddenly aged a whole year in terms of depreciation because towards the end of 2016, several main dealers were bringing cars in from the UK and were able to offer early 2016 UK cars for the same price as they were asking for 2015 Irish models in the middle of the year.

The UK registration system flipped in March 2016 from xx 65 yyyy to xx 16 yyyy so a car registered in Jan/Feb 2016 (with a '65' plate) would have been regarded as a late 2015 model in the UK whereas if it was imported into Ireland, it got a 161 plate and that's exactly what happened with thousands of models.

bladespin

Sounds like they hope you're dazzled by the 'new' car and will just offload the old one, happens more often than you think.

Del2005

coylemj wrote: »

OP can shop around all she likes but the fact is that she bought a 2014 car last year and in the meantime, thousands of 2015 and 2016 cars have been imported from the UK thanks to the drop in sterling, that has severely affected the secondhand value of cars like hers.

It's as if every existing Irish car suddenly aged a whole year in terms of depreciation because towards the end of 2016, several main dealers were bringing cars in from the UK and were able to offer early 2016 UK cars for the same price as they were asking for 2015 Irish models in the middle of the year.

The UK registration system flipped in March 2016 from xx 65 yyyy to xx 16 yyyy so a car registered in Jan/Feb 2016 (with a '65' plate) would have been regarded as a late 2015 model in the UK whereas if it was imported into Ireland, it got a 161 plate and that's exactly what happened with thousands of models.

The cost of PCP makes it easier to buy a brand new car, with no worries for the ownership period, vs buying a 3 year old car, which you don't know the history of. The there are all the "scrappage" deals or Mercedes just cutting 10% which has made all 2nd hand cars drop several grand.

NinjaTruncs

Rallycrazygirl wrote: »

I've looked up same car model as mine online in various garages and there selling for 4500 to 5000 more than I was offered and all had at least 50 to 60 thousand Kms more than mine. So totally confused.
He told me I was getting good prize considering there was new tyres etc on it

Being advertised for that, they would most likely be selling for between 1,000 to 2,000 less than being advertised.

mickdw

See if you can sell it private for the amount the dealer was giving you.
If you can, you are gaining about 2k back cause you can then go in for a straight purchase and straight off ask him how much he is discounting for the straight sale. You can then play further hardball and tell him Brexit has hit car prices here and see what he can drop too. In effect, selling private allows you to put the shoe on the other foot and turn things around on him.
To put this into perspective, I once had a bmw dealer ask for 18k to trade from a 1 year old €50k when new audi to a new 45k bmw.

Sam Kade

Rallycrazygirl wrote: »

Hi
Just want be of advice I bought my car less than a year ago, was 2 years old when I bought it but now need something bigger.
I went into garage where I bought my car and found something I like.
When I bought the car said even in 2 or 3 years would only loose small money on it. So bought it.
When I got prices for what car is now worth the offered me 6000 less than what I paid for it less than a year ago. Totally shocked. There's a years tax on it, four brand new high spec tyres , just serviced. Also no marks on it anywhere body alloys etc. sales person said its immaculate so why such a big loss. Is this normal to happen.

Surely you know the car you trade in is useless and the car you are buying is great until you go to trade it in again, that's what garages want you to believe and how they make a profit. Why not buy a car in the uk and sell your old car private, you could easily save between 3-5k depending on the car.

coylemj

Del2005 wrote: »

The cost of PCP makes it easier to buy a brand new car, with no worries for the ownership period .....

PCP is a financial package involving a new car, the buyer is taking the massive depreciation hit, no matter how good a job the leasing people do dressing up the deal.

Del2005 wrote: »

... vs buying a 3 year old car, which you don't know the history of.

If you buy a three old car with no history, more fool you.

Del2005 wrote: »

The there are all the "scrappage" deals or Mercedes just cutting 10% which has made all 2nd hand cars drop several grand.

Secondhand prices dropped because of the flood of imports in the second half of 2016. In response, Mercedes cut their prices by 10%. They did not cause the drop in car values, they were responding to it as an alternative to seeing new sales dry up. Why would a single distributor (with a range of relatively new models) all of a sudden drop their prices by 10% when things were looking good and sales improving every month?

goochy

I have noticed a lot of used car dealers who previously imported mainstream brands are now selling irish cars mostly despite exchange rate . Is it that the value of irish cars in the trade is so low its not worth their time / money importing ?

Cee-Jay-Cee

Rallycrazygirl wrote: »

I paid market value on first one didn't over pay on it, shopped around to get a feel for prices.
Also like to point out family dealing with this dealership long time , my current car is 3 rd one I have bought from here. Always fair on prices up to now I think

Shop around and get an average prices your offered elsewhere iand go back dealer and see if they will up theirs....so long as you get better prices.

bmwguy

Audi A3 high spec I'm guessing pushing 40k new.

Depreciation year 1, 20% of 40k so 8k value 32k
Depreciation year 2, 20% of 32k so 6.4k value 25.6k

Did you buy it for around 25k?

Now your year of ownership, 20% of 25.6k so 5,120 depreciation in your year of ownership

Close enough to 6k which is fair I think

Car has depreciated from 40k to 20k in 3 years which is 50% over 3 years which is standard.

The values sink like a stone unfortunately!

Rallycrazygirl

Thanks for all replies.
I'm a cash buyer so no pcp or finance involved. Just trade in and cash.

went to three different garages today to get valuation was in different car brand and another Audi garage in next town to me. The first garage gave me 3000 more. Second garage gave me 2500 more and Audi gave me 3500 more. So if I estimate its roughly 3000 more than original garage.

So big difference to loosing 6000.

I'm going to ring in morning and tell sales rep and see response.
Other Audi has same spec car I want but different colour.

Gumbo

Rallycrazygirl wrote: »

Thanks for all replies.
I'm a cash buyer so no pcp or finance involved. Just trade in and cash.

went to three different garages today to get valuation was in different car brand and another Audi garage in next town to me. The first garage gave me 3000 more. Second garage gave me 2500 more and Audi gave me 3500 more. So if I estimate its roughly 3000 more than original garage.

So big difference to loosing 6000.

I'm going to ring in morning and tell sales rep and see response.
Other Audi has same spec car I want but different colour.

Don't mind them offering more for the trade in, what was the cost to change into a similar car in the other garages?

listermint

Anyone who thinks a nearly new car will devalue at around 1500 per year needs their head examined.

Double it and there is your figure always has been , brexit makes no difference to this.

Your not losing that low of a value on a nearly new car .Ever.

Rallycrazygirl

The Audi was priced same as original garage. cost of change was 3500 less than original garage. So better deal. I'm better off my 3500.

One of other garages also had same model. car was priced 200 dearer but still saving 2800 more than original garage.

bazz26

Sounds like a no brainer then.

Alanstrainor

Deleted User wrote: »

Will an A3 saloon be that much bigger than an A3 hatchback?

+1. I'd wager there's not much in it.

jimmycrackcorm

Rallycrazygirl wrote: »

I'm going to ring in morning and tell sales rep and see response.
Other Audi has same spec car I want but different colour.

Don't even bother. If you had a family history of buying in the dealership and they were going to stiff you so much, why would you go back?

mickdw

jimmycrackcorm wrote: »

Don't even bother. If you had a family history of buying in the dealership and they were going to stiff you so much, why would you go back?

I'd go back to tell him the deal on the table and walk away with satisfaction when he won't beat it.

colm_mcm

Look at the Mercedes CLA as well.

9935452

Alanstrainor wrote: »

+1. I'd wager there's not much in it.

Possible going from a 3 door to a 4 door and gaining space that way.
Personally i would prefer the hatchback, there is more useful space with a hatchback

SBPhoto

A3 Saloon is a much more attractive looking car than the hatchback IMO Specially the SLine

Del2005

SBPhoto wrote: »

A3 Saloon is a much more attractive looking car than the hatchback IMO Specially the SLine

They just look like an A4 from a few years ago.

Comhrá

Del2005 wrote: »

They just look like an A4 from a few years ago.

A4 from a few years ago was a very smart-looking car, esp around 2007.

I think the A3 Saloon is also a pretty good-looking car too, in particular the S.line.

Effects

If it's a space thing wouldn't the A3 Sport back be the one to go for?

tippman1

tippman1 wrote: »

A4 from a few years ago was a very smart-looking car, esp around 2007...............

The 2008 ones look much the same as current model IMO.

bazz26

Effects wrote: »

If it's a space thing wouldn't the A3 Sport back be the one to go for?

A3 in general is not a very spacious car.

Rallycrazygirl

Thanks for all replies. Collected new car today. Totally paid to shop around. Delighted with new car and dealership even threw in first two services free. Happy days

ROVER_1912

Rallycrazygirl wrote: »

Thanks for all replies. Collected new car today. Totally paid to shop around. Delighted with new car and dealership even threw in first two services free. Happy days

best of luck

you came to the right place for advice

carsfan2

Rallycrazygirl wrote: »

Thanks for all replies. Collected new car today. Totally paid to shop around. Delighted with new car and dealership even threw in first two services free. Happy days

Did you go back to the original dealership and get a better deal or buy elsewhere?