Volkswagen Ireland

Daniellek1

Hey just looking to see if anybody is in the same boat. Basically March 2023 we took the plunge and bought an electric car, the Volkswagen ID.5. Went to talk about trade in today and the car has lost 22k value. So we actually owe the bank money now if we want to trade in!! No deposit left in the car to carry over. Volkswagen have reduced the prices of the ID range and have screwed over its 2023 customers. Leaving us with no value in the car. The sales guy who we have previously bought 3 cars from said he is going back to the bank to see what can be done, but let’s face it we signed the contract so nothing will be done. Volkswagen is laughing all the way to the bank!

Clo-Clo

Why are you trading the car in after 1 year?

Around this time last year Tesla started to cut the price of their cars, the writing was on the wall everyone would have to follow suit

i have been saying for years the price of electric cars was too high and inflated by the manufacturers, when you see a Renault at 40k and even still a “cheap” Chinese car starting at over 30k you should know the market is incorrect.

I guess the car is on PCP? Why not keep it running till end of contract ?

Daniellek1

I want away from electric. We said we would try it but this country is not set up for full electric. A long journey to the west of cork we stopped twice and then had to use family members cars because there was no chargers near the holiday home we rented. It is on pcp but come the end of the term we are still going to be in the same boat. The sales rep said he is going to see if we can hand the car back without damaging my credit report because right now we are paying into the car and it’s not making a dent on the figure because it’s in negative equity!

Woodie40

https://www.boards.ie/discussion/comment/121571932#Comment_121571932

My partner feels the same as you, she is getting rid of the E.V.

It’s not just VW, people that bought the Tesla Model Y lost a huge chunk of money on it when they slashed the prices on it.

Perfectly normal for a car, any car, to be worth less than you owe after 9 months on PCP.

You just seem to have purchased the wrong car, which isn't VW Ireland's fault.

zg3409

At the end of PCP you can hand the car back. If you end a PCP early there are clear penalties and they should be able to tell you how much.

You then need to source a replacement. Prices of some new cars have gone down so cost to change may be less.

Lesson is buying a brand new car is not cheap. Buyer beware etc.

PaddyCar

How much you looking for the car? I'm in the market and may be interested. PM if you want to discuss. Thanks

joe1303l

https://www.boards.ie/discussion/2058329603/volkswagen-ireland

Try a few other VW dealers around the country as you’re not tied to the one you bought from. You are tied into the PCP finance element but can trade in where you want or sell it privately. You’re always going to take a hit trading a new car so early especially when new stock have had a price cut. It might not be a €22K hit though.

Clo-Clo

https://www.boards.ie/discussion/comment/121572205#Comment_121572205

ALl the VW dealers are having the same issues with second hand electric cars, I doubt any of them want to take it on because they will have to sell and make a margin

https://www.boards.ie/discussion/comment/121571932#Comment_121571932

So one trip to Cork and you want to swap it? does it work for you every other day of the week.

When it comes to end of term no you are not, you can walk away from it

mickdw

If you were buying another ID car, the reduced prices would play into your hands so there would be no difference. Buying a petrol or diesel will be rough as they have not dropped anything like ev.

Anyway, you bought an expensive new electric car at peak demand time and are trying to sell it when the entire ev market is in freefall and with it being less than 1 year old, you can only lose a fortune.

Keep the car and after 3 years you should be in a reasonable position as things will have settled down and worst case you will have the option to walk away from it.

To be honest, considering the pricing drops and the year old car, 22k is better than I would have thought as they knocked nearly 20k off asking for some of them.

I can't see you being able to hand it back at this stage. There is a half rule that allows you to break finance agreement without penalty but given its a pcp with a lump of loan left to end, half rule.might still require you to pay a large portion of the 3 years anyway but I'm open to correction on that.

ted1

you’ll think a hit on any new car after 9 months

how often do you make that long journey?

JoeA3

You are on PCP. My advice would be to stick it out for another while, ideally the full 3 year term if you can. Things will eventually settle down and even out. The EV used car market is in a bit of turmoil at the moment, a lot of uncertainty. So you are trying to offload a nearly new car (rarely a good idea in the first place) in this messed up market. A perfect storm!

I would be very surprised if at the end of your 3 year term that there isn't at least some equity in your car. Absolute worst case scenario, you hand the car back after 36 months and thats the end of it. Thats the one advantage of PCP - the dealer/finance company takes that risk and you won't be left with a worthless car.

I don't think it would come to that though, you'll surely have some equity after 3 years. What is the GMFV on it? (the final balloon payment)?

It's not the first time VW have done this. Back in 2014 they launched the MK7 Golf R and priced it up around 60-70k and they sold only a handful here. Then in early 2015 they knocked 10-12K off them and they sold like hotcakes. I bought one at the time myself and a guy in VW told me that "market share" was the be all and end all for VW, moving as many units as possible - hence the aggressive price cuts back in 2014 and the same again now. In the face of competition from Tesla and the Koreans/Chinese they had to.

Buzwaldo

From where to the west of cork? Anyway as others have said the early depreciation (loses 5k when you drive out of dealership) combined with overall EV price drops and the way a pcp works have caused the perfect (sh1t) storm for you and I do sympathise.

I’m sure it does well for most of your driving apart from a long winter voyage to an area with poor charging (or at least I hope it does).

How about keeping it, enjoying not filling up for excess of 100 euro at the pumps, and maybe consider hiring a car for extra long journeys (assuming they are infrequent)?

Daniellek1

The GMFV is €28,500. So I really have no hope I will have any equity at the end. The rest of the repayments add to €18,000. So if I was to lose another €10,000 in 2 years I will be in the same situation.

The worst part is I traded in a 22 Tiguan allspace Rline, this was pcp also but held its value amazingly.

I wasn’t aware Volkswagen had done this previously. The same with the Tesla situation I wasn’t aware. Clearly should have done more research before buying an EV. I shot myself in the foot buying this one 😢.

NIMAN

Evs are a great car for those who have it as a 2nd car, or who have it as an only car and who travel <200km daily, which is the vast vast majority of the country.

The trip which annoyed you, if its something you only do once or twice a year, then it should be manageable. If you do it every week, maybe you made the wrong choice.

Most modern evs have very decent range now. Most could do 300km on a full charge. I have a 5yr old, old tech Leaf, and it could do 200km ok. Many folk could easily live with an ev for 99% of their travels, but let a few negatives put them off.

I know many anti ev folk. Thing is, they ate going to have to adopt the tech sometime, it's going that way. When will they be happy with the range of an ev? When it's 1000km? 2000km?

JoeA3

https://www.boards.ie/discussion/comment/121572593#Comment_121572593

Yeah it's all a bit unfortunate but like I said, I would advise sticking it out for another while, at least another 12 months. The market is too messed up at the moment and dealers don't really want your car back in stock and will price it accordingly.

The Tiguan has always had strong residuals and I think it will continue to do so!

MrMusician18

https://www.boards.ie/discussion/comment/121571932#Comment_121571932

Where were you coming from and what town did you end up near? Starting with 100% and charging to 80% twice gives the ID5 a very conservative wet cold high speed real world range of 780km.

There's rapids in Clon, skib, bantry and schull.

Yeah, when you try to trade a nearly new car you'll take a beating on value, with 23 EV customers really taking a hammering this year. Live and learn I guess.

Maybe a second car is an option until the PCP is up?