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  • #16
    Say the dealer 'buys' the car from VW at $35,990. Without negotiation, they'd be making $7624 from the sale.

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    A bit misleading, because you aren't including the charges they are paying too. I'm not a car salesman, nor have been, but I think it gets more complex and to why car prices will vary. Bonuses!

    Say if the dealer sold 30 cars a month standard. If they sold 40 than VWA give them a 3% sales bonus. What about 50 a healthy 5% sale bonus. So you can imagine how much it is worth them to sell a car 'cheaper' than normal if it gets them an extra 1.5% bonus payment. Of course, this is all theoretical.

    If yo walked in and were car no.1, than they won't care anywhere near as much as car no. 50.

    Try and forget where the discount is coming from and focus on the total drive away price. It doesn't matter at the end of the day if you save $2000 on dealer delivery or on the car itself.

    Drive away price has made it easier by far, because it removes the hidden costs that could be 'made up' at the end of a sale.

    CTP has no bearing on comprehensive as it is part of the registration of the car and is a compulsory element. Just think of it as the government outsourcing basic citizen insurance, that it would need to look after if the insurance companies didn't.

    BTW CTP is for Third Parties (individuals), i.e. not you or anyone's property.

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    • #17
      Yep, I totally agree, it's a very simplified view of how car dealers opterate.
      I don't profess to know too much about that side of the car business.
      It was a simple exaple of how such low drive away prices can be achieved and include the 'compulsory' government charges.

      And yes, at the end of the day, you don't have to really worry about how the car dealers operate. Just walk into the show-room knowing where your bottom line is and trust in the fact that if the dealer agrees to sell at a certain price, it means that the dealer is making some money, that's a fact of life . Keep in mind, car dealers need to make a living as well .
      MkV Jetta
      2.0T FSI

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