MY12 Model changes Golf

[Maverick]

My only point was that VWA has probably recently renegotiated the exchange (which would obviously be in VWA's favour). Instead of dropping the price (and hurting all our resale values) they have probably added the extra equipment for a similar total unit price (also makes the car more competitive amongst it's competition). SChan's dealer would have priced delivering the car at the old rates... charging for the BT and MDI. I suspect however... the dealer will end up paying less for the car as a result of a specifications change, yet doesn't want to pass it on. While the dealer may order the car... they don't pay for it until it arrives. No one is going to be worse off for giving SChan the difference back... all that is happening is the dealer is keeping the extra. But... you are right, he has signed a contract.

You missed my point, we don't know what deal VWA has with VW regarding pricing and they may by paying the same despite currency movements and depending on taxation it's likely that VWA would not be making more profit on the cars. And you also missed my point with the dealers having to pay the price at the time they placed the order, not the price when the order arrives which can be 6 to 15 months later. This order was placed before the MY12 changes were announced and the dealer would have placed it at their old buy price using the old codes, this includes having to pay for the MDI as this is a separate item at the time of order. Orders placed after the MY12 upgrade were announced and the MDI included would of course be eligible. So your claim that the dealer could give schan his $770 back and not be worse off isn't correct.

OK?! I'm happy to put this down to a difference of opinion... I don't think it would be ridiculous to seek some advice from Fair Trading (especially seeing as each option would be itemised on the contract... opening up a few questions as to why they are charging for something that is now included). Remember, a contract protects both parties in an agreement, there may be protections in it for SChan (I have no idea what is in the contract fine print) with regards to this matter. If he felt it was worth perusing, a complaint may help him find a resolution.

If you read my post... you will see that I do caution that there are risks in perusing this course of action. I also said that this was not something I would go through with.

My opinion is that he has a contract for $X that he negotiated and he has no right to demand they refund him because of a price drop that occurred AFTER he signed (the MDI inclusion can be seen as a price drop in his case as he wanted the MDI, for others it's a bonus). There is no guarantee that if he went into a dealership they would do any better if he renegotiated today as margins may have dropped on the GTI since his deal was done. Fine to ask the dealer but they said no so IMO that's where it should end and taking it further is not worth the hassle.

[Maverick]

My contract says - if the price of the car goes up , i will have to pay the difference. Now if that happens (increase in price) because of MDI and BT being offered as standard , i will be paying for something that i have already paid and that does not make sense to me!

If the MY12 model is more expensive you won't have to pay any more for the reasons I gave about the dealer paying the price at the time the order is entered. What that clause is there for is to protect the dealer if the government decides to ream us more by charging an additional 2% stamp duty or increased registration because these figures are paid at the time the car is registered (which can be a year or more after the contract is signed). The same applies if the import duty on cars is increased by 5%, this is outside of VW and the dealers control so it would be passed on (unless they are able to wear it).

[SChan]

If the MY12 model is more expensive you won't have to pay any more for the reasons I gave about the dealer paying the price at the time the order is entered. What that clause is there for is to protect the dealer if the government decides to ream us more by charging an additional 2% stamp duty or increased registration because these figures are paid at the time the car is registered (which can be a year or more after the contract is signed). The same applies if the import duty on cars is increased by 5%, this is outside of VW and the dealers control so it would be passed on (unless they are able to wear it).

Thanks Maverick.

Sorry, but I do not completely agree with you. What I understand after reading the clause is that if the price goes up, I will have to pay the difference.

[Maverick]

Thanks Maverick.

Sorry, but I do not completely agree with you. What I understand after reading the clause is that if the price goes up, I will have to pay the difference.

Have you read the fine print? It was be worded something like this

If at any time after this contract becomes binding but before the delivery of the vehicle, the cost of the vehicle changes because the manufacturer changes it's price or there is a change in statutory charges (registration/stamp duty etc) the purchase price may be adjusted by this amount.

And something about the manufacturer increasing the price of the vehicle to the dealership and passing this on but only up until a maximum amount.

As I said the dealer isn't going to charge you for a MY12 update model as you purchased before that was released.

If you're really worried about it go and see a lawyer but you won't see any posts on here or other forums about a VW dealer jacking the price up a heap after the contract has been signed.

[pologti18t]

Thanks Maverick.

Sorry, but I do not completely agree with you. What I understand after reading the clause is that if the price goes up, I will have to pay the difference.

Does it say that? Or does it say its a reason to break the contract. You don't have to pay the increase, you can break the contract and walk away with your deposit.

[langers_sydney]

They will let you break the contract and give you your deposit back, but do you really want that? If it was a new engine they were charging you for then fair enough but its only a few hundred dollars in a 60,000 investment (Granted a depreciating one)

I'd stick with it.

[deandj]

Under the Terms and Conditions on my contract it states If there is a change in the recommended retail price, which the purchaser will be obliged to pay the price increase. This will include any other taxes payable in respect to the purchase price.

Now if they can increase the price because of movement then Im sure they can drop the price

[Corey_R]

And if SChan had paid the RRP, I'm sure they would.
But he hasn't. He's negotiated himself a nice "little' (read big) discount.

I think we all need to step back a moment here and use some common sense guys. We're no longer talking about RRP prices. SChan has already negotiated a 14% discount off RRP.

Also consider the fact that whilst Bluetooth and MDI might now be "Free" - it's only free to the consumer. SOMEONE still has to pay for it. As Maverick has pointed out, who are we to say it's not the dealer paying for this "free" item via lower margins?

Obviously to expect $550 + $270 to be "refunded" is just simply ridiculous since SChan hasn't paid RRP anyway. But even asking for that amount minus 14% might be pushing the relationship if it is infact the dealers margin that the cost of these now "free" items have been taken from.


NOW - if SChan and the dealer ripped up the contract and renegotiated based on the new RRP - that's a fair thing to do... Whether it'd come to any different conclusion is another thing.


And before anyone starts ripping into my post. Is there anyone here who has ever had to pay more than their contracted price on their VW purchase for any reason other than increase in onroad costs due to federal/state government tax/registration/insurance increases? If there is, they've never posted about it whilst I've been a member here....

[SilvrFoxX]

And before anyone starts ripping into my post. Is there anyone here who has ever had to pay more than their contracted price on their VW purchase for any reason other than increase in onroad costs due to federal/state government tax/registration/insurance increases? If there is, they've never posted about it whilst I've been a member here....

I was thinking exactly the same thing when reading all the posts on this topic

[Maverick]

Under the Terms and Conditions on my contract it states If there is a change in the recommended retail price, which the purchaser will be obliged to pay the price increase. This will include any other taxes payable in respect to the purchase price.

Now if they can increase the price because of movement then Im sure they can drop the price

Why would the dealer drop the price if they still have to pay for the MDI and Bluetooth? Did you miss the part where the car was ordered with MDI and Bluetooth separately before VW announced the MY12 changes? The dealer still has to pay for the MDI and Bluetooth so why should they wear a loss just because a different (not better as we don't know the margins) package came out AFTER they purchased.

[SChan]

Guys,
Just got a call from the dealer and they will not lower the price (are ready to cancel the order) and are prepared to refund the full deposit!

[dave_r]

Guys,
Just got a call from the dealer and they will not lower the price (are ready to cancel the order) and are prepared to refund the full deposit!

Of course they are! If the 14% discount is true, why should they bother selling the car to a pain in the arse quibbling over another $700 (or whatever it is) that is outside the contract already signed when they'll have 3 other people willing to pay more and be less hassle?

If you bought a house and the market went to **** between purchase and settlement, I'm guessing you'd want that difference refunded as well? Or the price of petrol drops tomorrow and you want your 2cpl refund? Gimme a break!

[langers_sydney]

Of course they are! If the 14% discount is true, why should they bother selling the car to a pain in the arse quibbling over another $700 (or whatever it is) that is outside the contract already signed when they'll have 3 other people willing to pay more and be less hassle?

If you bought a house and the market went to **** between purchase and settlement, I'm guessing you'd want that difference refunded as well? Or the price of petrol drops tomorrow and you want your 2cpl refund? Gimme a break!

Completely agree with above I'm afraid. You will lose the car and any goodwill if you proceed.

[Guest1306]

Of course they are! If the 14% discount is true, why should they bother selling the car to a pain in the arse quibbling over another $700 (or whatever it is) that is outside the contract already signed when they'll have 3 other people willing to pay more and be less hassle?

If you bought a house and the market went to **** between purchase and settlement, I'm guessing you'd want that difference refunded as well? Or the price of petrol drops tomorrow and you want your 2cpl refund? Gimme a break!

Why is there no "LIKE" button for this post?

[SilvrFoxX]

They havn't enabled the reputation function in the Forum software