Okay, you have a disadvantage in that the mark four Golf TDI rightly or wrongly (wrongly in my opinion, but that's another story) is a desirable model, which means people want them... which in turn means that dealers are loathe to even discuss a discount, let alone provide one. You're also trading a ten year old machine and most dealers selling the '04 Golf probably won't want to take this on as a trade in: expect a low trade in figure.
You may find a VW dealer more open to cut a deal given you're sticking within the brand, but beware for the catch of "we don't discount, sir, it's a Golf" because in days of old, they cut you off at the ankles by offering a bottom price for the trade-in Golf.
But, but. Research is useful: have a look at Autotrader for some prices of both respective cars, which will give you an idea about what you should be paying. Also, consider some alternatives (if you want to stick with VAG engineering I'd recommend Seat and Skoda in preference to the Golf).
I'd look out for the fact that 12,995 is waaaay overpriced. I don't know exactly what model you're looking at, but a quick look on
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reveals plenty of Golf TDIs under 7000, all under 2 years old and with less than 60k on the clock. Ok, you might expect to spend a bit more if it's an especially desirable model (like a PD one) with virtually zero miles on the clock, but not *that* much more....
-- Coming Soon: The British Apathy Party - though I bet nobody'll vote for them.
??? You'll need to register to be able to properly use the search facilities - select Volkswagen, then Golf, then put "TDI" in one of the options boxes, make sure it's doing a nationwide search, and select cars up to 2 years old, and under 60,000 miles. It's not rocket science, ffs.
-- Coming Soon: The British Apathy Party - though I bet nobody'll vote for them.
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