Tag: value

Comment: VW Touran value loss comparison

The other day, in my inbox I found a newsletter from Volkswagen Denmark, which I subscribe to, and theme is praising the VW cars for their used car values. They are praising mostly Golf, but also in general all Volkswagen cars. Analysis was made by an online car magazine in Danish and compare value loss of used cars across makes and over 4 year period.

In MPV class there is

  • VW Touran 1.6 TDI (Startline) with 44%
  • VW Touran 1.2 TSI (Startline) with 47%
  • VW Touran 1.4 TSI (Trendline) with 47%

…over period of 4 years and 80.000 km (20.000 km a year).

Let’s dig a bit deeper to analize the differences and common factors.

What is Startline?

Startline is VW package/option used (perhaps only) in Denmark as a way of lowering a cost of a car, as taxes in Denmark are highest in the world. Usually VW has Trendline, Comfortline and Highline as options/packages. But in Denmark, because of the taxes on cars, they are introducing Startline as low-end option and Match line, which is an a bridge between Comfortline and Highline options. So as one can concluded, models mentions in the analysis, are in the low-end of options.

Comparing these models with my car to understand value loss

My car is VW Touran 1.6 TDI with DSG7 (eg. automatic gearbox) and Highline option, plus extra packages that include, sport, winter, DK, Teknik, Mirror and Light packages, Black (deep Perle effect) color. My car’s price tag is at least 27% more than the one TDI in the analysis. At the time latest offer was made, it had driven 38.000 km (currently 45.000 km). And it is 2 years and a week old. So my car in 2 years lost 35%. The one in the analysis lost 44% over 4 years. Mileage is about the same, so this is actually pretty easy to compare. If I am to believe the value of my car in 2 years is -35% then in 4 years it should be -70%. Which means, I couldn’t even trade my car in for a VW Up! by the time it reaches 4 years.

Highline package has probably 4 times the equipment the Startline has. And Startline lost 44% in value. Logic would dictate that Highline, with extra equipment, would keep the value a bit better. But let’s say that it does not, and that we should just use math and calculate value loss by dividing the time the car has been used. My would be rated at 22%. This gives a difference of 13% from what it was rated. So 50% difference in the rating of my car.

Another thing is, (which would be funny if I wasn’t to be at loss of €15.000) that this is rating (-22%) I was given before I let the dealership know that I still have problems with my DSG7. So now, I am pretty sure that somebody is trying to screw me and that my calculations and reservations about the latest rating are correct. They are most probably calculating the cost of the gearbox replacement as something I should pay for. While they are trying to convince me that there is nothing wrong with my gearbox.

Comment: Serial Production Standard

I wanted to comment on few things regarding Volkswagen’s conclusion on my problems with DSG7 gearbox.

After replacing a DSG7 gearbox, flywheel, dual clutches (twice), mechatronic (reset twice and replacement once) the car/gearbox is still making grinding noise and shuddering/juddering and having uneven acceleration on periodical basis.
They (VW) concluded that this is “Serial Production Standard”.

What does this Serial Production Standard means?

Well in my mind, this means that the car is behaving within normal parameters of operation they are expecting to see. Which in turn means, they can acknowledge  my complaints, but they are not going to do anything about it, as they mean I should live with it.

There are few things, in their conclusion, I don’t agree with;

  • First of all, their Serial Production Standards might be set too low, as no car I have driven so far, has done this. If Volkswagen is expecting customers to live with faulty hardware they paid premium for, they really need a reality check. I am not accepting anything less than what I paid for, as I have my own standards what should a car make and not make of noises. I am probably not alone in this, either. Metallic grinding noises are not standard in any mechanical device. This is either considered as a sign of poor hardware design or worn parts. Grinding is always considered sign for premature ware of the hardware and cause for concern. And this is to be expected in moving parts, even when lubricated. But, it is not supposed to ware after only 5.000 km. This is not a standard and can’t be a standard for few reasons.
    1. When I bought the car, it did not make this noise, nor did it shake my kidney stones. Ergo, can not be a standard, as it was not there the whole time, but something that car started to make/do afterwards.
    2. Car was manufactured wrongly, and it fixed itself while I was driving it? Bought a car no noise no juddering.

When they replaced flywheel, noise and shaking disappeared. But, it came back again after some time, so this makes me think replacing flywheel is not the permanent solution. But it might have solved it temporarily. So, to claim that this is standard noise, is just rubbish and trying to avoid real cause of the problem. I might conclude following if I am to believe their conclusion.

  • Noise and juddering, disappeared after a visit to their shop, it might be they installed fly-wheel incorrectly. As it took a whole year before it started to make the “standard” noises and shake again. Either they destroyed something while replacing flywheel in the car, and then the car used a year to fix itself, or there is real problem that should not be ignored. But, who knows?! Maybe that’s why we (VW owners) pay premium. VW cars can fix themself. Now, that’s what I call getting good value for the money. (Be aware of irony)
  • Also, their conclusion does not explain for why some cars have this problem, while others don’t. Across the makes even, but all owned by VAG (Volkswagen AG). I’ve seen reports from owners of Skoda, SEAT and VW; all with the same DSG7 gearbox and with exact the same problems across the world. In Denmark, in one poll, this was approximately 20% of owners that had problems with their DSG7 gearbox. It is not specified what kind of problems. I am not saying poll results as absolute results and can’t be wrong, but it does make me wonder why did 20% had problems. There may even be more than 20%, but are not aware of the noise or they haven’t reached the “ware”-threshold for when the problem is noticeable. Or even that they are waiting for a warning “light” turn on before they take action.

Another thing…

I can live with the noise, but I just want to be assured that this is not premature ware, as I am suspecting it to be. And reports/letters from VW officials in China, Russia, Malaysia and USA are not assuring me in this. They are extending warranty on all DSG7 gearboxes to 10 years or 150-160.000 km. Reasoning being, “no permanent fix for the problem exist”, so to assure owners in the product they are extending warranty. Guess what, if it’s the same gearbox and same problems worldwide, why keep it isolated only to few countries, when this gearbox is sold worldwide? Economical reasons, probably.

Value loss

All this amounts to not being happy with the way car is behaving and I am expecting it to behave.
When I went to dealership where I bought and serviced the car to trade it in for another car. Same make and model, only younger (in hope that this one is not going to behave like the first one). I was given an estimate of losing 35-40% of cars value. Car, at that point was, 17 months old, and had 42.000 km on the clock, in mint condition. My car is a TDI (1.6) Highline model with DSG7 with all kind of extras for at least €15.000. And yet, I am losing 35-40% of its value. Why?

Dealership have in their used-cars department a Comfort and Trendline models, same age, with manual transmission and about 15.000 km less on the clock then mine, and they are selling them for more than what they estimated my car value is. I understand they need to earn some money on the resale of the car, but 35% is a bit too much of the value loss, especially if Volkswagen AG is saying there is nothing wrong with the car.

For comparation take a look at this…

  • Comfortline (manual) : NEW = 370.000 DKK vs. USED = 309.000 DKK (– 16%)
  • My Highline (aut. DSG7) : NEW = 475.000 DKK vs. USED/ESTIMATED = 300.000 DKK (-35%)

Alone the difference in DSG7 vs. manual should give at least 45.000 DKK more in value for my car, not even taking into account that the car has;

  • park assist,
  • light assist,
  • cabin warmer, (with remote)
  • mirror package,
  • winter package,
  • sport package,
  • 17″ Oakland wheels.