Observations after 1 month and a little over 1000 miles in the life of a 22 Golf R:

I can’t imagine this car without a DSG.

Factory ECU and TCU tunes are the best yet by far. It’s really quick. Power delivery is super linear and not the big torque hit and high rpm puke-n-die that you feel from a tuned stock turbo Mk7.

The new yaw control rear differential is exactly what this car needed and the 7R was missing.

Upgrading to more aggressive summer tires is a revelation. If you value performance driving through corners, they should be your first mod.

It can go from completely docile commuter to having its back up and ready to fight with the touch of a button.

If you could only have one car for the rest of your life to do everything, the 8R makes a very strong case to be that choice. The combination of performance, technology, quality, utility, audio, and lighting is a huge step above the competition. You really can have your cake and eat it too.

I had a Mk8 manual GTI for 5 months directly before this. And honestly, there’re both fantastic cars depending on what you want. The GTI is a little more playful, lightweight, and takes itself less seriously. The R is rapid, surgical, and a master of grip.

 

Hahha. I'll remember this when you trade in this car for something new in six months.

 

There’s nothing else that will work for my job. I need a hatch.

 

You've had like six hatches since I have known you. Look forward to the next one in six months.

 

Thanks.

 

Didn't you just have a Camaro?

 

He had a MK8 GTI and I think an Audi S3 after the Camaro I think. It's hard to keep up.

 

I thought he had a CTR and Vette too.

 

You're tell me!!!

 

Don’t be hatin’.
It’s fun to try different cars in an economy where you can trade them for what you paid a few months ago!

The only debt I have is my house.

 

Noize had a Camaro? I missed that one. But I agree if you can switch cars without losing money then I would be doing the same.

Noize, what is the secret to do that? Make sure you buy at the lowest price possible on any car or picking the right car at the right price?

 

Both for sure. And don't be afraid to buy a clean title used car that needs a little TLC if you can do your own detailing, maintenance, or light repairs. You only pay tax on the price difference when trading in most states. Watch Facebook marketplace locally. If there is a car that has been sitting with an individual for over a month that you can make right through maintenance, offer him low and see what happens! If you can pay cash for the cars, all the better to avoid interest. Analyze your local market. Some vehicles are shooting up in value like crazy. For example, I sold the Camaro and Type R way too early. They were gold mines waiting to be had, but I didn't have a crystal ball to predict the future.

I'm up about $1500 trading 10 cars over the last 4 years. You win on some, you lose on some.

Gains-
I made like $3800 trading my daughter's FR-S. I bought that sucker low from an individual, did a bunch of maintenance to get it right, traded it high.
Some lady pulled out in front of my Evo X and totaled it, her fault. That one I made a whooping $6000.
Made $1800 on a Mk7 GTI that I cleaned up, detailed, paint corrected.
The SS 1LE Camaro I got through my uncle, employee purchase program. Made about $1200 on that.
S3 I broke even with it. Drove it 6 months for free, traded it for like $80 more than I paid for it.

Losses-
Corvette I drove 2000 miles, which I consider a steal to get to drive it through a spring and summer. Cleaned it up, removed unsightly vinyl, paint corrected. But -$1400. It was a 2014.
Veloster N, lost -$3800. This one was a big ouch. I won't own another Hyundai/Kia.
FK8 I paid MSRP and lost when I traded it, -$2700.
22 GTI I took that one on the nose a bit because I got my R for MSRP, -$2800. Paid cash for the difference on the R.
Daughter's interim GLI, -$700 selling it. Got her an older GTI that had been gone through by a VW master tech and put $12,000 in the bank.

I don't mind getting a little flack from people for trading a lot and trying many cars. But now I have a paid off car new in my garage that I really like and hope to keep awhile. I could sell it at a profit from what I paid a month ago in this crazy market, but who knows if that will last? And who cares? It's my favorite one yet that checks the most boxes.

I'm a realtor by trade, interest rates are soaring, but pricing speculation and comps are what I do all day, every day. It's only natural that it bleed over into the automotive world, because I love so many cars and enjoy experiencing them.

 

Noize,
On a high level do you think single family home prices will "crash" relatively soon? I expect them to "dip" some because of the interest rate hikes will cool demand some, but if we have a recession will that take single family homes into "crash" territory. Also there is a shortage of single family homes too. Thoughts if you don't mind.

 

Man, that's a way tougher question, haha! There are so many things driving this that makes that scenario almost impossible to predict.

Home rates on a 400k loan on a 30 year earlier this week were the highest I've seen it since I started real estate in 2014. It spiked close to 6.25% earlier this week, and is down to around 5.975% at the moment. In December, I was seeing 2.85%. Read that paragraph again, lol.

But to answer your question, I would say the biggest factor is your zip code. The Nashville area is super hot, but a few parts are starting to cool. I don't think Middle Tennessee will "crash". STILL coming out of a supply nightmare from the pandemic, food and fuel prices in orbit from Putin's war in Ukraine, etc has everything high. **Inflation is hard to walk back!!!** So while I would love to see a "crash" as you say to get the dollar back to where we like, I personally don't bet on much more than a 10% correction. I would love there to be more, but demand won't let that happen. Hope that at least sort of answers your question.

 

Noize,
I work in new home construction and we are very busy through 2023 at the very least. This is in the expensive southern california market too! Shortages are hitting new home construction as you know, but I didn't think about the appliances being hit so hard. Home builders are giving vouchers to new home buyers to source there own appliances so they can close the home sale. The builders we work with are public companies so they are cranking homes out even it is does not have a buyer yet. In 2018 that was not the case, builders would build phases as they sold. In my market all homes (existing and new) are short in supply and I don't think we are building enough to saturate the market to lower prices anytime soon it looks like from my perspective.

Also cars are not cooling down either, new car lots are low on new car supply and used cars are being sold from what I can see.