Passat Resale Value
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  1. #1
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    Passat Resale Value

    Hey everyone,
    Here's my dilemma. I really want a Touareg and need to trade my Passat in or sell it. It's an 03 GLS 1.8T Sedan with leather, monsoon, homelink, tiptronic, and heated seats with 25k miles. I did an edmunds.com TMV on it and it spit out these results!!!
    $16,423 - Trade in
    $17,563 - Private sale
    $19,678 - Dealer price

    What gives!!! I bought this 18 months ago for $24,000! I know cars depreciate, but this is crazy. I remember reading somewhere that a car magazine rated the Passat best at holding it's value. Right...
    For comparison sake I ran the TMV on my Certified 02 Audi A4 1.8T Sedan 5-speed with sport pkg, ESP, Bose, and Xenons wit 23k miles. It spit out these numbers:
    $19,275 - Trade in
    $20,381 - Private sale
    $22,441 - Dealer price ($23,791 for certified)

    I bought the Audi used 9 months ago for $22k. You could have bought it new in 2002 for about 26K. It's holding it's value great! The Passat's dropping like a rock.

    What do you guys think? Am I expecting too much for the value of my Passat? My 02 Audi with less options is worth more than my 03 Passat. Plus the fact you can pick up a 2004 Passat for way under invoice right now just ticks me off. VW is giving dealers $3000 in marketing support (dealer cash back) on the Passat.

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  3. #2
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    Its probably because you have 25k miles on it and its only 18 months old. Thats quite a few miles seeing that the average is about 12k per year. I have 36k miles on my 2000 GLX 4Mo which will be 4 yrs old in June and Kelly Blue Book, IIRC, tells me that its still worth just over $20k for a private sale.

    Try Kelly Blue Book, you may get better results!

  4. #3
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    $my passat, how do you keep your miles so low living in Orange County!! I have 17K on mine right now and its an '03!!!! :shock:

  5. #4
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    Not really, the mileage only takes away $800 or so. I ran both with a Clean rating versus an Excellent just to be fair.
    Ran the same thing on Kelly Blue Book and it was worse. It came in at a little of $14k for trade in with a rated condition of Good.

    I think all my future purchases will be Certified Used cars because I don't want to take the depreciation hit again. Plus my Certified Audi has a 6yr 100,000 mile warranty versus the 4/50,000 for the VW. Can't beat that.

  6. #5
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    I have noticed too that the VW values are in the toilet! It's most likely there quality problems! I cannot believe how fast the value drops in these cars It's sicking to say the least when an Audi A4 is really the same car but even smaller. A wolf in sheeps clothing really and the value is better Had I known the Value of this car would decline as fast as a stock market crash I would not of bought it!
    Also VW is letting 5,000 workers go to make up cost! If they would just make a better quality vehicle with more power I dont think there sales would be down like 50% and would not be worrying about cost

  7. #6
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    This seems strange. Could it be your area? I just traded in a 2001 B5 GLS, V6 (75K), and they gave me $13,500. I noticed that the dealer cleaned it up and put it right on the lot at 17,500. I suspect they will get about $15,000 for it. Your values seem very low. Shouldn't be a huge discount for mileage?

  8. #7
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    you are right - the passat is a piece of shit when it comes to resale - but i love the damn thing - for resale, yeah i would have bought the A4, but it just isn't as roomy!

    enjoy.

  9. #8
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    Its also due to the fact that money is easy to get now-adays, and a lot of NEW cars are dropping in price too. (For instance dealer dropped his pants when I negotiated for my 2003 Passat)

    This dramatically makes any used car value drop, as someone would rather buy a new car.

  10. #9
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    I don't get it. Passat holds its value pretty well. Compare it to Camry, basic model. 2003 new would be about 22000, trade-in today would be 13000, private sale - roughly 14000 (from kbb in excellent condition). The drop is 40% for trade in, 35% for private sell. For Passat using your numbers - 27% for private sale, 30% for trade-in. Well, it may not be as good as Audi, but still better than your average car! Just in general, as soon as new car leaves dealer's lot its value depreciates a lot, that's why buying new may not be the best financial decision.

    I may be off a bit on my numbers

  11. #10
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    Your problem my freind is the same one I recently had. Your car depreciates almost 50% of its value in the first year. Then the depreciation begins to slow for awhile and level off. This curve is in direct opposition to the payoff curve for your loan (where you are paying mostly intrest in the beginning and taking off less prinicpal). Of course there are TONS of other factors that have little or nothing to do with the condition or reputation of your car. What is the market like? How many of that type of used car (Passat, etc.) are currently on the used market? Used cars that are "nearly new" can be hard to sell at a high price, becuase let's face it - why not just add a few more $$ and get a new one.

    I recently traded my 1 year old Mercedes on my W8 and had the EXACT same problem. Took a bath on it. I wish you luck with the best deal, but it is a simple matter of economics I'm afraid.

  12. #11
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    Quote Originally Posted by Beavis

    I recently traded my 1 year old Mercedes on my W8 and had the EXACT same problem. Took a bath on it. I wish you luck with the best deal, but it is a simple matter of economics I'm afraid.
    It's more like 20% in year 1.

    True Cost to Own 2004 passat 1.8T with your options:

    Total Cash Price $24,522 ((TMV)

    Year 1 Year 2 Year 3 Year 4 Year 5 5-yr Total
    Depreciation $4,797 $2,415 $2,126 $1,885 $1,691 $12,914
    Financing $941 $751 $551 $342 $123 $2,708
    Insurance $1,135 $1,175 $1,216 $1,259 $1,303 $6,088
    Taxes & Fees $1,244 $559 $384 $182 $93 $2,462
    Fuel $1,056 $1,088 $1,121 $1,155 $1,190 $5,610
    Maintenance $209 $625 $611 $942 $1,065 $3,452
    Repairs $0 $0 $0 $331 $508 $839

    Yearly Totals $9,382 $6,613 $6,009 $6,096 $5,973 $34,073


    The problem is that the car depreciates most in year 1, then it slows down.

    add in the fact that you can get $5k off of sticker right now on a new passat.....


    My advice: wait for a nice used Toureg to come in off lease.

  13. #12
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    MustMoto, I don't know what you are doing, but thats a lot of miles! Do you work far from home or something? I got to school at UCI so I drive there and home once a day and thats about it.

  14. #13
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    Your car depreciates almost 50% of its value in the first year.
    Where did that come from? I suppose if you paid way too much for your new car then this could be true but not for a somewhat savy buyer. Doing a search on your car in Edmunds.com or Kelly or whatever gives you a ballpark figure. This number is not a good number to go by. Look at the resale value in your area, do the research on what dealers are selling your car for and what they are being sold for in the paper. A dealer usually marks up a car by a couple of thousand (rough estimate) for a used car. If a dealer makes over $1000 more than what they paid for it they will usually be happy. It's true that the used car market right now is swamped for sure. But the Passat is still a highly rated car, just tied with the Honda Accord in 2004 for best sedan, and should still get a good price. I say do your research and get the price you know it's worth. I don't know the condition of your car but if it's in very good shape I think you should get at least 17K-18K. And no I'm not joking.

  15. #14
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    Hey MustMoto, I just realized that you are the one who suggested a SoCal get together in San Clemente. Hows that coming along? It will give me a reason to put a few extra miles on my car. :-P

  16. #15
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    Unfortunate for you there is rapid depreciation off the lot, yet this can be good for the used B5 buyer. I agree with others, low intrest rates have encouraged new purcahses and the result is a glut of used vehicles.

    Another place to confirm value is NADAguides.com. In my area your car's trade value is $16700, and retail $19400 High milage deduct was -$175

  17. #16
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    I bought my 2000 passat gls 1.8t 5spd 47k miles for 13300 in sept 03. retail was about 15500

  18. #17
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    I was offered 7k for my 99 wagon w/60k which trade in sites said 11k - which is what i owe for it, and they had a similar w/o leather in the used car lot for 13k...so i'll be driving it around another couple of years till it's paid off vs eating 4k.

  19. #18
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    I am facing a similar choice - I have an '02 Variant GLS with tip, and the lease is up in December. Buyout cost is $14,000 after 36 months. I don't know whether to keep it, trade it in on a Golf TDI or sell it outright and buy a 1984 MB 300D/300TD! Must crunch some serious numbers...

  20. #19
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    My advice: wait for a nice used Toureg to come in off lease
    I agree with scotty_ passat. I bought my '00 V6 Passat off a 4 year lease for $13000 last month. 51k miles. Just like new.
    The car will still deprecieate, but even when it gets over 100k on it it will still be worth $4 - 5k. It could take another 5 years to run up that many miles.
    You take a hit on car depriciation on just about any model. Why trucks hold their value so much better is beyond me.

  21. #20
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    [quote="scotty_passat"]
    Quote Originally Posted by Beavis

    Total Cash Price $24,522 ((TMV)

    Year 1 Year 2 Year 3 Year 4 Year 5 5-yr Total
    Depreciation $4,797 $2,415 $2,126 $1,885 $1,691 $12,914
    Financing $941 $751 $551 $342 $123 $2,708
    Insurance $1,135 $1,175 $1,216 $1,259 $1,303 $6,088
    Taxes & Fees $1,244 $559 $384 $182 $93 $2,462
    Fuel $1,056 $1,088 $1,121 $1,155 $1,190 $5,610
    Maintenance $209 $625 $611 $942 $1,065 $3,452
    Repairs $0 $0 $0 $331 $508 $839

    Yearly Totals $9,382 $6,613 $6,009 $6,096 $5,973 $34,073
    Those maint and repair costs are really close to what I've seen the last two years, but the depreciation estimates are not as high as past experience. I bought my car 2 years ago for $15,700 ('99 GLS, 1.8T, Tip, Lux, CD with 36,000 mi) and now it is worth $10,000. The original owner suffered more of a loss than this estimate too, going from about 23,000 down to $15,700.

    I guess if a person finds a well maintained 2000 right now would seem like the best deal.

  22. #21
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    What's the story with this then (for 2002):
    http://edmunds.com/reviews/list/top1...2/article.html

    But if you look at 2003, VW doesn't appear:
    http://edmunds.com/reviews/list/top1...8/article.html

    -Craig

  23. #22
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    [quote="ganseg"]
    Quote Originally Posted by scotty_passat
    Quote Originally Posted by Beavis

    Total Cash Price $24,522 ((TMV)

    Year 1 Year 2 Year 3 Year 4 Year 5 5-yr Total
    Depreciation $4,797 $2,415 $2,126 $1,885 $1,691 $12,914
    Financing $941 $751 $551 $342 $123 $2,708
    Insurance $1,135 $1,175 $1,216 $1,259 $1,303 $6,088
    Taxes & Fees $1,244 $559 $384 $182 $93 $2,462
    Fuel $1,056 $1,088 $1,121 $1,155 $1,190 $5,610
    Maintenance $209 $625 $611 $942 $1,065 $3,452
    Repairs $0 $0 $0 $331 $508 $839

    Yearly Totals $9,382 $6,613 $6,009 $6,096 $5,973 $34,073
    Those maint and repair costs are really close to what I've seen the last two years, but the depreciation estimates are not as high as past experience. I bought my car 2 years ago for $15,700 ('99 GLS, 1.8T, Tip, Lux, CD with 36,000 mi) and now it is worth $10,000. The original owner suffered more of a loss than this estimate too, going from about 23,000 down to $15,700.

    I guess if a person finds a well maintained 2000 right now would seem like the best deal.
    when you say its worth $10k is that trade or retail?

  24. #23
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    outrun - I think endmunds is trying to say the Passat will retain value longer than any other car, but like most people here have said the first's years depreciation is killer. In the long run I think the Passat will hold value pretty well, it's just this first year that's killing me.

    I think I'll hold on to the Passat until next year and wait for a high vin Touareg to come off lease. Hopefully by then I'll be able to break even on my car.

    I've also thought about switching to leasing vehicles only instead of buying them. I never can seem to keep a car longer than 3-4 years because either something new comes out that I want or warranty runs out and I get something new. This makes perfect sense for a lease, but I always think the next car I buy I will keep forever...never happens. I've looked into the Driver's Option for financing too. I'll post the scoop on that in a new thread.

    Thanks for all the feedback and keep it coming.

  25. #24
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    The current Consumer Reports issue will not help resale value for 4-cyl Passat.

    According to CR:
    Used cars to avoid:
    Volkswagen Golf ’96-03; Jetta ’96-03; New Beetle ’98-03; Passat ’98-00; Passat (4-cyl.) ’02; Passat (V6) ’96-97

    In predicted reliability for new cars, the Passat 4-cyl was the bottom last in its class.

    On the other hand, the Passat 6-cyl tied with Accord as best overall in its class. The 6-cyl was rated as "average" in reliability.

    I have an '03 Passat 4-cyl. I wonder how it will hold 2,3 years down the road.

  26. #25
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    From Wards Automotive:

    Between 1997 and 2003, Volkswagen AG’s 1.8L turbocharged DOHC I-4 earned five Best Engines awards, and each time this stout, versatile powerplant dazzled us in a different bodyshell – namely, the Jetta, Passat and Golf TDI, as well as Audi AG’s A4.

    Best Engines Judge Barb McClellan, who is editor of Wardsauto.com and in a prior life did some short-track racing, gushes about the 1.8L turbo in the A4, which we gratefully got to test for a year as a long-term loaner.

    “This is a match made in heaven, melding car, engine and driver into the perfect machine,” McClellan says of the A4 package. “It’s an absolute delight. It leaves me wanting nothing more. Ah, but there is more. And I delight in that, too.”

    Who do you believe? CR or Wards?

    -Craig

  27. #26
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    looking at lease residual values, the passat is a "4-star" car whereas the toureg is a "3-star"....meaning the passat has less depreciation.....this is good becuse it means a used toureg will drop in price at a faster rate, good if you are looking for a used one.

    this is from edmunds.

    I think CR black-lists the 4-cylinder becuase of the coil packs, I don't know of any other major issue (aside from the dead turbos on the 1998) maybe the "sludge factor" cat is out of the bag?

    glad to see my 2001 1.8T is sitting pretty in between

  28. #27
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    The deal between your VW and Audi is that your Audi was used. The first owner ate all of the initial depreciation. You are eating all of the initial depreciation on the VW. Be thankful that the intial depreciation isn't 40% like alot of american cars these days.

    Yeah, it kind of sucks, it's the unfortunate side of buying new. This is my first new car, everything else has always been used. I have paid zero attention to value because I don't want to know. I don't intend on getting rid of it for several years, and sometimes it's better not to know.

  29. #28
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    [quote="scotty_passat
    when you say its worth $10k is that trade or retail?[/quote]

    KBB Private Party

  30. #29
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    One thing to consider is the desirability of any paticular vehicle in your area. Everywhere, car based SUV's are hot. In most markets sports cars and rag tops are in demand (especially in the spring). Mid size four doors are not going to keep their value period.

    If you buy a new car you can expect to get walloped in the first few years especially in the first year.

    I shudder to think what my 00 Variant V6 would bring with 174K miles. My plan has been and will continue to be drive all my cars till they are unreliable. It makes less difference a few years down the road what they depreciate to, they all end up about 10 to 20% of what I paid.
    I have not had good luck with used as my feeling is that people who only drive a car for 20K miles really have little motivation to change the oil or dirve it with any care.

    Make sure you love what you buy and if you don't be prepared to lose large sums of money.

  31. #30
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    Okay, 50% was probably a little steep, but it is more than 20%. It really comes down to economics 101 - supply and demand.

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