I sold the Phaeton this week. And I soundly defeated the depreciation dragon.
A fellow car enthusiast two towns over contacted me online and asked if my car was for sale. I replied maybe and we met on Sunday for lunch and a test drive. And before you know it, the car was sold. I think we both got a good deal. I bought the car in 2011 with 37,000 miles for $23,000. I sold it with 54,000 miles on it for $22,000. To those of you who have ridden in my car, you will probably agree that it was well taken care of and looked and felt years newer than it actually was.
And despite horror stories, innuendos, and exaggerations about the car’s reliability and exorbitant repair costs, I did the research. I identified the problem model years (just 2004) and the potential weaknesses through research on enthusiast forums like VW Vortex. I was patient and expanded my search nationwide, waiting for the perfect specimen. My car originally belonged to an older, well-to-do gentleman who did not spare any expense with upkeep and repairs. A thin ream of records confirmed the story. And I paid a bit of a premium for a low mileage, pampered example from a dry climate.
Thankfully, the previous owner took the depreciation hit. My base model V8 Phaeton cost over $70,000 new after you take into account gas guzzler tax, sales tax, and registration. Fortunately, I hit the sweet spot– when the luxury car still drove and looked new, but had plateaued in terms of value. Hence, the car lost $1,000 in value in the 14 plus months that I had it.
Granted, there were other costs, but they were by no means prohibitive. Insurance cost the same as my old Acura TSX. It took a lot of premium fuel, but with work a short bus and train ride away, I only filled up the tank twice a month. And we have covered maintenance costs previously– tires, batteries (starter and accessories), and an alignment were routine. The extended warranty covered a window regulator. And my insurance carrier covered an admittedly expensive rear view mirror assembly ($1,200) that was damaged by an errant tumbleweed.
Driving that car was like a dream. The stability at high speeds. The attention to detail. Everything. If you do the research and have a modicum of intestinal fortitude, I highly recommend a slightly used full-size German luxury sedan.
With the extended warranty/service contract expiring in July, the new owner is shopping for a new warranty. VW quoted $9,000. A third-party warranty company will do it for a shade under four grand. I honestly don’t think the warranty is necessary, as my Phaeton is solid, but there is something to be said about peace of mind.
A new chapter in my life begins. For the first time since 1996, I do not own a car. I’m not in a real hurry to find a replacement, but I will need your help. I will provide you with the parameters shortly and I expect nothing but the most oddball suggestions. Currently, I’m interested in an old Honda Insight, a 1990s Olds 98, and a ten year old Jaguar XJ6. Eclectic, no?
*The Phaeton and the Bentley Continental Flying Spur were built alongside each other at Dresden’s Transparent Factory.
Images sources: Copyright 2013 Hooniverse/Jim Yu and rchen
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