Need your suggestions

[Billip]

Hey guys... I'd like your input on some things I've been thinking lately... please tell me if I'm on crack or not.

I'm considering getting rid of the TT and buying something else that is about 2 years old. The only reason I'm thinking of this is the depreciation I'm paying on the TT. This is the first car I've bought instead of leased, and unfortunately I did it exactly WRONG because I should have leased this car instead. I bought it when the CAD was weak and before the price drop on Audi's, so I paid through the nose for it. I was just at the dealership on the weekend and they have a used one similar to mine for $60k. For comparison, I paid $75k (all in) in May of 2007. Yikes! Makes me sick thinking about it.

So I'm thinking about my options... is it smarter to cut my losses and get rid of it now and get something else that will hopefully depreciate slower, or hang on to this for a bit longer and continue to bleed out. If I was to get something new I might actually spend more money, my problem is with depreciation and not the initial outlay of cash.

Also, how are you guys finding used car prices at dealerships these days? Have they responded to the cheap cars we can get from the US by dropping prices, or is it still better to import from the states?

Sorry this is kinda mind diarrhea coming out of my brain. Hope this made sense.

[niXon]

Re: Need your suggestions

$75K on a TT.

Wow that is ridiculous.

[Billip]

Re: Need your suggestions

Thanks for the insight.

[Smarty39]

Re: Need your suggestions

I think it really comes down to how long you are prepared to hang on to the car for. I assume not very judging by the fact you are already considering dumping it, so your best bet would be to try and sell it sooner rather than later. Obviously you're going to take a huge hit either way, but the depreciation will definately be less now than it would be later (duh, I know). If you're thinking about a used Audi, you may be able to get away with a bit better deal...whether it be on the sale end or the purchase end, it won't really matter to you because the difference in price is what you'll look at. If it's another type of car (p-car lol?) you'll probably take a bit more of a hit...just my $0.02

Oh, and in my opinion it is still considerably cheaper to import a used car...so long as YOU are willing to do all the leg work and not pay somebody to do it for you.

[liquid]

Re: Need your suggestions

Your in somewhat of a tough spot here - but you do have a TT... which is

This is simply my opinion on this issue, but as was already mentioned... the decision on whether to keep the car or sell it depends a lot on what you're planning to replace it with. If you're planning on moving to a vehicle that is in a similiar class (higher end) I would honestly just keep the TT. It's an amazing vehicle, and depreciation is always front loaded on a vehicle anyway - meaning you've already been saddled with the largest portion of the depreciation. Moving to another 50k+ vehicle wouldn't help much if any.

If on the other hand you're looking at significantly donwgrading the vehicle (ie: 30k or less) Then it might be a good idea to sell the vehicle. In that type of a situation the difference in depreciation is significant enough to make a large difference in your wallet.

It really depends on what you're looking at doing post TT....

[Bubbleboy]

Re: Need your suggestions

This can't be good...identical TT in the US for $34K.... sorry for the bad news.

http://forums.vwvortex.com/zerothread?id=3548666

[James]

Re: Need your suggestions

Completely depends on how you feel about the car..If you're happy with it, then stick with it.

Think of those dudes who drop 100k into an old muscle car...20k for the car, 100k in mods, selling price of 24,000 hahah.

You in 'fo the money, or in it 'fo the love?

[liquid]

Re: Need your suggestions

This can't be good...identical TT in the US for $34K.... sorry for the bad news.

http://forums.vwvortex.com/zerothread?id=3548666

Lets say an equal TT is 36 in the US.... now once you've paid transport ($2500), GST ($1800), Duty ($2500).... your now sitting at $42800, and you haven't done any inspections or anything yet. Plus, the Cdn dollar is no longer at par.... so it's closer to $44,000. It is definitely cheaper, but the costs associated with import add up.

Further to your question Bill, Vehicles depreciate 15-20% a year... with a slope towards to onset. So let's say you paid 75k... here's you schedule.

Year Onset Dep % Value COST
1 75000 20% 60000 15000
2 60000 18% 49200 10800
3 49200 16% 41328 7872
4 41328 14% 35542 5786
5 35542 12% 31277 4265

The first year cost you 15k, but the subsequent years will cost you substantially less.... so it all depends on how much you value driving a nice vehicle, and what vehicle you would move on to if you sold the TT. You'e paid the largest portion already....

[Billip]

Re: Need your suggestions

Thanks for the input guys. I'm thinking I would probably get something in the same price range as the TT, except I would try to get something a few years older so that those heavy depreciation years have already been paid for. The thought of getting rid of it now stems from a couple of thoughts: my car is a 2008 and still a current model year... if I wait until the 2009's are out that could impact it more, and also the second year of depreciation will be less of a decline, but still pretty heavy. What really killed me was Audi dropping the prices... and of course they had to do that because of the dollar... which I also couldn't have known about. Basically it's the perfect storm.

I know some of the US TT's are crazy low... nothing I can do about that, and honestly I don't care. I only care what someone in Canada will pay for mine, or how much I'll get on trade. Also, you have to do bumper mods to import the US TT's, which is a pain and most people won't want to go through that. I really think the average car buyer in Canada just wants to go down to the dealer and pick something up... they can't be bothered to do what the car enthusiast will do (import one).

Chances I'll keep the car for a long time are very very slim. I get tired quickly of things and want something new. So I guess this all leans towards getting rid of it. Decisions, decisions.

Does anyone know of any sites that have good data on average depreciation percentages over time?

[liquid]

Re: Need your suggestions

There is no static rule for vehicle depreciation. Although it averages around 15% it depends on a multitide of things including:
1) Type and brand of vehicle
2) Model year changes
3) Current economic conditions
4) Exchange rates
5) Even interest rates play a factor....

[Kor]

Re: Need your suggestions

If I were you I would also try to get as much of my money back as I could with a Canadian sale, go down to the US (still highly worthwhile to buy a car in the US right now, especially exotic or sports cars) and get an amazing deal on a 1 or 2 year old car. Dealerships here, used and new, have not adequately responded to the price difference. Some cars in the US are getting harder to bring up here now, but nonetheless, there are still deals to be had.

Talk to Chris about helping you find a US car maybe.

You could pick up something very fine for that much money; I'm sure you know this but your TT cost about 20% more than my Cayman S even after all my import costs and other costs are factored in! And someone else will have eaten the depreciation.

I think if you are not in love with the car and not willing to spend 10-20 grand on that love, then its an easy decision. Or at least see what you can get for the TT and if you can't get what you want, you can always fall back on keeping it?

On the other hand I intended to sell my Cayman in Canada to make some money before it depreciated, but I decided I loved it too much and would keep it a few years instead.

[Canadian Turbo]

Re: Need your suggestions

The depreciation well decline over more time, so if you sell early you are taking the biggest hit as has been stated, but it really depends what your long term plans are. I think the key is what you can actually get for the car, and what you are getting for the new car and how much it is.

The Federal government rules for automotive depreciation are 30% of the declining balance but only on 30,000 maximum. Therefore:

Year 1 30% of 30,000 = 9,000 so value is 75,000 - 9,000 = 66,000 12% Dep
Year 2 30% of 21,000 = 6,300 so value is 66,000 - 6,300 = 59,700 10% Dep
Year 3 30% of 14,700 = 4,410 so value is 59,700 - 4,410 = 55,290 7% Dep

Now obviously this system is slightly flawed with the 30,000 limit and the further the price is away from that the more out of whack the numbers would be, but it still goes to show how the depreciation changes from year to year.

[nordex]

Re: Need your suggestions

I would drop it like it's hot if its possible. That kind of money can go a long ways in the states. You could get something totally nuts for that kinda $$$

[nordex]

Re: Need your suggestions

http://cgi.ebay.com/ebaymotors/04-AM...QQcmdZViewItem

Start saving lol

http://cgi.ebay.com/ebaymotors/BMW-M...QQcmdZViewItem

[Kor]

Re: Need your suggestions

I'm not sure how hard it is to sell the TT in Canada, is there a wait on getting them from the dealership at all?

A private sale to someone who wants a summer car and doesn't want to wait for the dealership or who just wants to not pay GST or something might be a good way to flip it.

If you are really savvy you could bring up a US car and make a profit on it in 1 year - this would actually be awesome and offset any depreciation loss you might have had on the TT.

I love your TT though don't get me wrong, I like almost everything about it better than my car, except maybe the engine.

How about:

http://cgi.ebay.com/ebaymotors/2007-...QQcmdZViewItem

http://cgi.ebay.com/ebaymotors/1999-...QQcmdZViewItem