Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

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Tig190DSG
Posts: 12
Joined: Mon Aug 10, 2020 10:47 am

Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

Post by Tig190DSG » Mon Aug 10, 2020 11:06 am

Hi guys,

Stuck in a bit of a pickle at the moment :D

I have a late 18 plate Tig 190 DSG owned her since new, was 2 years old as of last week. Cars immaculate and detailed monthly :shock:

I currently have the car over 4 years directly with VWFS it will have cost me approx £18.5k @ 40k Mileage over the total term (£380 a month) .

I'm debating buying the car at the end of the term from VW directly, i have been told they go off trade price when it comes to pricing so if VW dealer has car up for 23k they will offer me at 20K etc.

Just not sure if it's a good idea, what have others peoples experiances been with them?

Would i be better getting a settlement figure now, or waiting another 2 years and see what factors affect the value ? e.g. electric grants from gov / new tig shape etc.

or just handing the car back as is ?


I really wanted to get an electronically deployable tow bar fitted and start towing with her, that's £1250 @ VW directly... so trying to think carefully really !


Appreciate the help on this !

Image

57408101_10161604453115635_888273702955778048_o.jpg


Po0oley
Posts: 65
Joined: Tue Jun 25, 2019 9:11 pm

Re: Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

Post by Po0oley » Mon Aug 10, 2020 4:17 pm

If you do a settlement now you will have to pay the full balance minus the interest on the remaining 2 years. If you wait till the end of term you will only owe the GFV which would have been given to you at the start of you finance. This value at the end is your starting value minus 48 monthly payments, so if you have the money now and you know your are going to pay the final payment then paying it now will save you the interest.
No.4 - R-Line Tech 240 BiTDi :D
No.3 - 2017 R-Line 150 White :)
No.2 - 2015 Match 150 Grey :|
No.1 - 2011 Match 140 White :o

Po0oley
Posts: 65
Joined: Tue Jun 25, 2019 9:11 pm

Re: Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

Post by Po0oley » Mon Aug 10, 2020 4:24 pm

However, if you wait till the end of your term the car might be worth more than your GFV and you could make money. My fist Tig was worth more at the end than the GFV so I made money, the other 2 were not so lucky as I traded them in at the 2 year mark and just about broke even over the 2 cars.
No.4 - R-Line Tech 240 BiTDi :D
No.3 - 2017 R-Line 150 White :)
No.2 - 2015 Match 150 Grey :|
No.1 - 2011 Match 140 White :o

xtrailman
Posts: 1206
Joined: Mon Jul 16, 2018 3:16 pm

Re: Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

Post by xtrailman » Mon Aug 10, 2020 5:15 pm

Can't you trade it in for the new model with the extras you want?
2019 SEL 190ps diesel.

Tammma
Posts: 319
Joined: Sat Jun 27, 2020 6:37 am

Re: Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

Post by Tammma » Mon Aug 10, 2020 5:29 pm

For what its worth, depreciation curves are steepest between Years 1, and then again in Year 3 as the warranty expires.

It gradually flattens out after that, and the annual % depreciation rate slows markedly. So you are likely to lose money if you trade in year 2. Intuitively that makes sense as the residual warranty has an added peace of mind factor for a second hand buyer.

This may help illustrate things - https://caredge.com/volkswagen/tiguan/depreciation

...of if you want a more localised flavour, it doesnt have a chart but the same point is made - https://www.themoneycalculator.com/vehi ... EN/TIGUAN/

This curve is of course based on averages and higher priced vehicles like a top spec R-Line will depreciate faster in absolute dollar terms. The percentages are probably similar however and more relevant here.

In my view, options typically dont hold their value and will depreciate faster than the car itself. Ie, your 1500 quid leather seat upgrade in an R-Line wont see you get 1500 more than an otherwise identical used R-Line TIg but with leather-alcantara seats. You might find that it is more attractive to buyers and find it easier to sell though, but that's about it.


tammma

Tig190DSG
Posts: 12
Joined: Mon Aug 10, 2020 10:47 am

Re: Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

Post by Tig190DSG » Mon Aug 10, 2020 5:37 pm

Hi guys,

Thanks for the input, I don't think I was super clear so apologies.
My car is on hire contract, not hire purchase or PCP.

So after the 4 years @ £18.5k out the bank, they will value the Tig at trade value and i can either buy or hand back.

I'm looking at tigs and thinking 4 years in maybe worth around 14k trade value by then max...

What're your thoughts?

Tig190DSG
Posts: 12
Joined: Mon Aug 10, 2020 10:47 am

Re: Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

Post by Tig190DSG » Mon Aug 10, 2020 5:40 pm

xtrailman wrote:
Mon Aug 10, 2020 5:15 pm
Can't you trade it in for the new model with the extras you want?
Not really fussed about another new car, thinking of driving into the ground tbh

Tig190DSG
Posts: 12
Joined: Mon Aug 10, 2020 10:47 am

Re: Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

Post by Tig190DSG » Mon Aug 10, 2020 5:41 pm

Po0oley wrote:
Mon Aug 10, 2020 4:24 pm
However, if you wait till the end of your term the car might be worth more than your GFV and you could make money. My fist Tig was worth more at the end than the GFV so I made money, the other 2 were not so lucky as I traded them in at the 2 year mark and just about broke even over the 2 cars.
Okay thanks for this buddy, not sure where i stand as mine isn't PCP.

Tig190DSG
Posts: 12
Joined: Mon Aug 10, 2020 10:47 am

Re: Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

Post by Tig190DSG » Mon Aug 10, 2020 5:42 pm

Tammma wrote:
Mon Aug 10, 2020 5:29 pm
For what its worth, depreciation curves are steepest between Years 1, and then again in Year 3 as the warranty expires.

It gradually flattens out after that, and the annual % depreciation rate slows markedly. So you are likely to lose money if you trade in year 2. Intuitively that makes sense as the residual warranty has an added peace of mind factor for a second hand buyer.

This may help illustrate things - https://caredge.com/volkswagen/tiguan/depreciation

...of if you want a more localised flavour, it doesnt have a chart but the same point is made - https://www.themoneycalculator.com/vehi ... EN/TIGUAN/

This curve is of course based on averages and higher priced vehicles like a top spec R-Line will depreciate faster in absolute dollar terms. The percentages are probably similar however and more relevant here.

In my view, options typically dont hold their value and will depreciate faster than the car itself. Ie, your 1500 quid leather seat upgrade in an R-Line wont see you get 1500 more than an otherwise identical used R-Line TIg but with leather-alcantara seats. You might find that it is more attractive to buyers and find it easier to sell though, but that's about it.


tammma
Thank you appreciate the breakdown, so you thinking i would best to try and settle at 3 years and buy outright vs spending another year and £5k renting?

Tammma
Posts: 319
Joined: Sat Jun 27, 2020 6:37 am

Re: Tiguin R 190 DSG - 2 Years Old - 2 Years Contract Left - To buy?

Post by Tammma » Mon Aug 10, 2020 5:51 pm

Tig190DSG - do you buy it at that trade value, I presume?

On your last question, you will simply move to another car I presume which you will buy and pay another new car dealer margin (unless you get a used private sale somewhere). Of course it'll be a newer car, and an upgrade most likely, so it depends on your personal circumstances a bit. So it is a bit hard to answer in isolation.

Are you after an answer on what makes sense financially? Because there are probably other non financial considerations depending on what your circumstances are potentially. Are you in a growing family and going to need a larger next car (perhaps an Allspace...or an MPV even)? Or are you going to downsize for your next car, perhaps a Golf or Polo? Or are you simply going to go carless at some point?

Or, will the current Tig be fine for a few more years yet? Just remember, everytime you churn, someone takes a clip on the way through...irrespective of whatever finance package you choose. :)



tammma.

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