Hot off the press - vw price reductions!!!!

[Maverick]

My dealer has told me whatever is on the contract and does not seem willing to pass the price reduction on? Anyone have any ideas on how to convince them otherwise?

You don't have a leg to stand on, you negotiated a price and that's the price the dealer is sticking by. You could cancel but will most likely lose 5-10% of the price of the car to the dealer and possibly more.

[amoon0]

My dealer has told me whatever is on the contract and does not seem willing to pass the price reduction on? Anyone have any ideas on how to convince them otherwise?

Check the fine print, if your vehicle sale contract has a term allowing the dealer to adjust the price according to manufacturer or statutory price changes occurring after the contract becomes binding but before you take delivery, check to see if it says the dealer 'may' or 'will' change the price accordingly...

If it's strict language like 'the dealer will adjust the price to the corresponding amount' then there is a potential leg to stand on and may be worth pointing him towards it. If it's discretionary for the dealer then you've got nothing.

Also note any other language in the clause, mine for instance mentions prices changes only and thus allows for price increases and decreases. Others may only mention price increases.

If there's no clause like this at all then you've also got nothing.

I'm unsure how standard this sort of clause is in vehicle purchase contracts. Might vary from company to company. Mine has it, coincidentally, but getting the price reduction wasn't a problem for me.

[night_flight]

my dealer wont pass this the saving of 200 for the paint saying that I already had a good deal on the paint?...wtf???

[Christopher]

my dealer wont pass this the saving of 200 for the paint saying that I already had a good deal on the paint?...wtf???

When I spoke to my dealer about this and he was happy to pass on the reduction, albeit through dealer assessories... So I just got things like more first aid kits, cargo net, boot liner, etc...

[Maverick]

my dealer wont pass this the saving of 200 for the paint saying that I already had a good deal on the paint?...wtf???

You negotiated a discounted price that you were happy with. You can't expect a temporary price reduction (a promotion with restrictions) that is most likely being shared between Volkswagen and the Dealer to be passed on without them renegotiating the whole contract which would probably leave you worse off. How would you feel if the dealer automatically charged for you a increase in the cars cost which they are entitled to do?

[night_flight]

You negotiated a discounted price that you were happy with. You can't expect a temporary price reduction (a promotion with restrictions) that is most likely being shared between Volkswagen and the Dealer to be passed on without them renegotiating the whole contract which would probably leave you worse off. How would you feel if the dealer automatically charged for you a increase in the cars cost which they are entitled to do?

I would feel ok but i also would like to get 10% further of my GTI considering the euro in the last few months has dropped significantlly (10%) against the aussie $ and thats a lot when you are paying over 40k for a car. Before GTI I considered buying honda type r and the dealer said to me by the time the car comes the price will come down even more to reflect CURRENT currency exchange so in fact you wont be paying the price (she read off the computer). I cant understand why Germany is so happy about Euro falling when in fact we are charged the same price? Who picks up the extra money the dealers or VW itself? Wish there was more transparency in the whole deal...I can swear to you if our dollar has gone down so much you think VW would keep the same initial price???

[Maverick]

I would feel ok but i also would like to get 10% further of my GTI considering the euro in the last few months has dropped significantlly (10%) against the aussie $ and thats a lot when you are paying over 40k for a car. Before GTI I considered buying honda type r and the dealer said to me by the time the car comes the price will come down even more to reflect CURRENT currency exchange so in fact you wont be paying the price (she read off the computer). I cant understand why Germany is so happy about Euro falling when in fact we are charged the same price? Who picks up the extra money the dealers or VW itself? Wish there was more transparency in the whole deal...

And would you be happy to buy your car if you were locked into a contract if the currency was devalued by 20% and you had to pay 20% more? No you'd be on here whining about it non stop. All car manufacturers set a price for their car and they maintain this price through our dollar dropping (30% or more in some cases) and through our dollar rising (40% or more in some cases). VWA pay $X for the car no matter what the value of the currency, sometimes they make more, sometimes they make less and at the end of the day it should all even out for them. And you have no idea what currency they pay for the cars with.

For example "Volvo Canada, for example, like many European brands, doesn't buy its vehicles in U.S. dollars. Volvo buys in Swedish krona or the euro, depending on the location of the manufacturing plant. While the Canadian dollar has appreciated some 50 per cent against the U.S. dollar in the last four years, it has appreciated only 10 per cent against the krona and 7 per cent against the euro in the same period, according to Volvo Canada spokesperson Chad Heard."

What about resale values if the car price keeps going up and down with the currency? It's not rocket science to see why the manufactures have to keep the cars at a fixed price especially when there can be 6 months between ordering and pickup, how many people would be pissed off at having to pay an additional $3000 at pickup?

As for your claim that Honda car prices are tied to the exchange rate I call bulls**t on that one.

I can swear to you if our dollar has gone down so much you think VW would keep the same initial price???

Yes they have, you can look it up for yourself as well and see that VW have maintained prices like all the other manufacturers.

If you don't like the way VW do business (which is funnily enough the same as the other manufacturers) don't buy from them, make a standard and buy another car and let them know.

[night_flight]

And would you be happy to buy your car if you were locked into a contract if the currency was devalued by 20% and you had to pay 20% more? No you'd be on here whining about it non stop. All car manufacturers set a price for their car and they maintain this price through our dollar dropping (30% or more in some cases) and through our dollar rising (40% or more in some cases). VWA pay $X for the car no matter what the value of the currency, sometimes they make more, sometimes they make less and at the end of the day it should all even out for them. And you have no idea what currency they pay for the cars with.

For example "Volvo Canada, for example, like many European brands, doesn't buy its vehicles in U.S. dollars. Volvo buys in Swedish krona or the euro, depending on the location of the manufacturing plant. While the Canadian dollar has appreciated some 50 per cent against the U.S. dollar in the last four years, it has appreciated only 10 per cent against the krona and 7 per cent against the euro in the same period, according to Volvo Canada spokesperson Chad Heard."

What about resale values if the car price keeps going up and down with the currency? It's not rocket science to see why the manufactures have to keep the cars at a fixed price especially when there can be 6 months between ordering and pickup, how many people would be pissed off at having to pay an additional $3000 at pickup?

As for your claim that Honda car prices are tied to the exchange rate I call bulls**t on that one.



Yes they have, you can look it up for yourself as well and see that VW have maintained prices like all the other manufacturers.

If you don't like the way VW do business (which is funnily enough the same as the other manufacturers) don't buy from them, make a standard and buy another car and let them know.

I dont care what or how Volvo buys their cars in fact the aussie dollar has been up against all the currencies and has not been up agianst just the euro but the US $ and as far as I know GTIs are build in Germany only so the comparasment does not apply. As for my "claim" about Honda it does not come from me but from honda dealer itself I have no reason to make up stuff I am telling you what the dealer has told me at the time. I realise all the dealers are different and the way they conduct their business is different too.

[Maverick]

I dont care what or how Volvo buys their cars in fact the aussie dollar has been up against all the currencies and has not been up agianst just the euro but the US $ and as far as I know GTIs are build in Germany only so the comparasment does not apply. As for my "claim" about Honda it does not come from me but from honda dealer itself I have no reason to make up stuff I am telling you what the dealer has told me at the time. I realise all the dealers are different and the way they conduct their business is different too.

Did you bother to read the part where it said "like many European brands"??

The point is that the dollar has been up and down for a long time and it will continue to do this, Volkswagen have cars coming from all over the world not just Germany and this has to be factored in, just because one model of car comes from a country where they might be picking up some extra margin doesn't mean the same is true of another their model which comes from Mexico for example.

Clearly you have no appreciation for the complexities involved so there is no point trying to explain that it's not as simple as you make out. Perhaps you should stop thinking about the $200, move on, do the job that you do and leave car manufacturing, importation and sales up to companies like Volkswagen that do actually know what they're doing. You're not interested in understanding how things work and are only interested in some ridiculous notion that cars should be sold based on the exchange rate when they hit our shores.

[night_flight]

Perhaps you should stop thinking about the $200, move on, do the job that you do and leave car manufacturing, importation and sales up to companies like Volkswagen that do actually know what they're doing. .

Yep I am sure they know what they are doing I agree with you

[Brian]

Some say, the GTIs coming to Australia are now coming from the China factory. Haven't seen anything concrete on this but could explain the exchange rate difference???

[Maverick]

Some say, the GTIs coming to Australia are now coming from the China factory. Haven't seen anything concrete on this but could explain the exchange rate difference???

Some say absolute bulls**t. All Golfs (except the Golf Wagon) come from Germany. VW China only makes car for domestic use and it's unlikely this will change.

[hooba]

The currency discussion is based upon the massive assumptions that A) VWA pays for it's product in Euros and B) that the price paid is based upon the current exchange rate. Without knowing what the details of the arrangement are, everything else is speculation. Most likely VW has a mechanism in place designed to give the consumer certainty in the face of currency fluctuations, and them realising that they are in the auto business and not in the currency speculation business, have structured the arrangement so that they neither benefit or suffer from short term currency fluctuations. I know of a worldwide IT company that has been running its business based upon a $0.61 AUD/USD exchange rate since the late 1990s.

Back to the previous topic on getting the price reduction passed on after a contract has been signed, I don't understand why people have this expectation. So many peoples' lives would be far less stressful if they could comprehend and accept that a signed contract is a binding agreement on both parties, and once signed, that is it.

[night_flight]

no thats cool fine I was only saying that I was really close and actually have ordered honda type R which are made in the UK and the dealer told me along the line that Honda has the right to change the prices from now till the car is actually delivred based on the current exchange rate. She showed me the old prices and said but dont worry about it as we are waiting for the new price to be confirmed.... Which I said is fine no big issue if it goes up it does so goes down even better... Certain people on here almost are to take your head off in a second I was questioning it if VW would do something similiar. I dont really care mine is almost signed sealed and few more days delivred.

[Brian]

Well said, hooba. If one had a real estate contract written in $A then thats what the settlement price will be in, even if the other parties currency tanks it or goes through the roof. I would expect that VW and all o/seas manufacturers would have hedging contracts in place to compensate for any deviation in exchange rates. Hence, what YOU sign up for in $A is what you should pay, regardless of whatever the rest of the worlds currencies are doing.