Deals being done?

[Skoda Convert]

Point taken

To keep it simple Skoda convert, I know exactly what the margins are on a new 6. I've known for years, and when I bought one in 2006 (which I still have) I can tell you I didn't get any runaround by the dealer, they just asked me what my offer was for it, and the deal was done.

I won't tell you why or how, because that's none of your business. I don't know what it is exactly on a VAG car, but in general terms, I have a better than average idea. Your scenerio below isn't fiction by the way, I've seen it many times with the exact car you mentioned. I don't know anyone who has paid RRP except for on limited run Ferraris.

I really don't know why you are so upset, you seem to be obsessed with a perceived drop in the value of a car by every post someone makes. If you are worried about values, buy a house, not a car. And especially not a new brand.

Your right, it's just a car and they all go south from the minute you drive out so i need to just have a dose of reality about it all. Don't get me wrong though i don't want to make out that paying RRP is what we should do to support the brand that would be ridiculous unless it was a special circumstance. Golf GTi was RRP for quite sometime but it had a 8 month waiting list so it was not the norm. All i am saying is we shouldn't build people up to expect 20-25% discounts because they just don't exist, and as you yourself are knowledgeable about the margins in a 6 would know that this is unrealistic.

Also making a brand like Skoda fight between eachother just to save a few hundred here or there will also see other groups give up the franchise and then my 'real' worst fear is that the brand exits Australia and i'm left with a great car no one knows anything

Anyway for the best part i may just be talking BS so ignore my dribble and i hope we can all start a new thread and forge on with something a little more interesting

Thanks for the post

Steve

[aarondc]

Yep, I thought I got a good deal on my Octy but it has dropped $7500 in 12 months. Thank goodness it's great to drive

My bro-in-law was really worried for me re: resale on the Skoda, which I found confusing - I'm buying it to drive and use it, not resell it. Yeah maybe I am naive, but at the moment I cannot imagine what you would do to a car to make me want to part with this one in exchange for another.

[woofy]

You always lose the most the first year or so, and then more after the warranty is out.

Having said that the prices have gone up a bit recently on used due to wait on the new Octavia, we had a flood of them initially as Skoda Oz had special allowances for getting them out there (which ended in 200. Also car manufacturers were going full steam last year until the crash causing a temporary glut which is pretty much going now.

The new model was also looming hence the longer waits, but I see no reason why they should plummet, VAG and Skoda have been doing well this year in a pretty harsh selling environment. Like Mazda/Honda/Subaru they don't really do much fleet stuff, so prices should hold up better than Ford/Holden/Toyota.

And yes Skoda convert, I doubt anyone could expect 20% discount, unless they really need to get rid of stock. I knew what the margins were, and presented something fair for both sides, which meant an easy sale without the dancing with the 6.

I think the dealers really need to step up the mark to keep the brand alive, everyone here has their car now, but the next few years of service will be what causes repeat sales. So far that has been variable. Skoda Oz are being too nice with dealers as well, they should be a tad more interactive with them and making sure Skoda customers aren't paying just the usual Audi/VW service charges, as we certainly didn't buy an Audi or VW. Making the warranty longer or more realistic for extension would be nice as well. From memory I paid around $300 for another year, not $1000s.

[Transporter]

My bro-in-law was really worried for me re: resale on the Skoda, which I found confusing - I'm buying it to drive and use it, not resell it. Yeah maybe I am naive, but at the moment I cannot imagine what you would do to a car to make me want to part with this one in exchange for another.

A new Skoda?

Just kidding, of course if you keep long enough you don't have to be worried about the resale value.

[woofy]

I have a friend who just traded in her 2001 1.8L Passat for 2k on a brand new 2L TDi Passat. That would scare some people, especially as I got 13k for a 2002 Mazda 323 Special edition last year, except her car had done 320,000kms.....

[K1W1]

I know one company starting with M that I know for fact what their margins are and it was more than double that.

I've got to say that I sold cars for 10 years in three different countries (incl USA) new and used and when I was in the business I never came across any manufacturer that allowed their dealers 18% gross across the board. Specific models or maybe specific deals perhaps but not across the board. Margins are much tighter now than they were when I was in the trade so if that is happening today in Australia I'm really surprised.

[K1W1]

If these cars were soooooo profitable why did Barloworld, a multinational shareholder company with over 24,000 employees decide to drop their Skoda franchise in Ferntree Gully????

Let me have a go at this;

• They were half hearted about their approach to the product.
• They were running the Skoda out of the former used car office with no dedicated showroom.
• The salespeople on site didn't know how to spell Skoda let alone sell the product.
• They never had any cars on display.
• They did absolutely no market research into the Ferntree Gully area otherwise they would have known that sighting a Skoda dealership only 50 metres to one side of Australias largest and most aggressive Nissan dealer was a recipe for disaster.

Want me to to go on?

[woofy]

I think they sucked summed it all up....

[Skoda Convert]

You are bang on

Let me have a go at this;

• They were half hearted about their approach to the product.
• They were running the Skoda out of the former used car office with no dedicated showroom.
• The salespeople on site didn't know how to spell Skoda let alone sell the product.
• They never had any cars on display.
• They did absolutely no market research into the Ferntree Gully area otherwise they would have known that sighting a Skoda dealership only 50 metres to one side of Australias largest and most aggressive Nissan dealer was a recipe for disaster.

Want me to to go on?

Yes all of this is true but corporate groups are universal in their approach. They would do the same at any other site they have its just that other brands and other sites are going to bring you the right demographic and the sales no matter what could literally open the doors and hire semi skilled monkeys and they would do volume because the are super sites in great locations.

All that being said you couldn't have been more spot on but the sad sad part is the Australian public will buy from a group even if they have been treated poorly and are not happy buying there solely based on price. I myself have done this in the past because i felt i would be a mug if i didn't.

The more we reward these groups with sales the more we set this atmosphere of poor sales experiences and the more we reward price over our own experience as purchasers !!!