VW Prices going up in the new year?

[Gipper]

Need some advice...

Do you think that the price of the VW passat R36 will go up in the new year due to the fall in the Aussie Dollar?

Financially its better for me to take delivery of a car in March but I may also have an opprotunity to take delivery in Jan (long story) if need be.

I am trying to weigh up my bets. If the prices are likely to rise in the new year as with most manufacturers, then it may be beneficial to take delivery before the rise.
However if prices stay the same, I would rather take delivery in March, also keeping in mind we are probably loooking at a further 1 or 2 interest rate reductions, which should save me money over the life of the loan.

Keeping emotion out of it (I am trying really, really hard), what would you do?

[R36 Dreamer]

Need some advice...

Do you think that the price of the VW passat R36 will go up in the new year due to the fall in the Aussie Dollar?

Financially its better for me to take delivery of a car in March but I may also have an opprotunity to take delivery in Jan (long story) if need be.

I am trying to weigh up my bets. If the prices are likely to rise in the new year as with most manufacturers, then it may be beneficial to take delivery before the rise.
However if prices stay the same, I would rather take delivery in March, also keeping in mind we are probably loooking at a further 1 or 2 interest rate reductions, which should save me money over the life of the loan.

Keeping emotion out of it (I am trying really, really hard), what would you do?

If you sign your sales contract and have it noted that the price is locked in, you will be okay either way.

It is difficult to imagine that prices will remain static, though the Yen is more volatile at the moment that the Euro.

Whilst interest rates are falling you may find that car finance remains high with the departure of GE from the car finance market -

I am no expert though this is all IMO.

[jmj]

I ordered a new 2009 built Passat last week with the price locked at the time I confirmed all details with the dealer. Earliest delivery is late March next year. So if you order the car now you'll pay current price and not get the car til March anyway. If you're happy with a 2008 built car you should be able to get it earlier... either way order now and pay today's price.

[RhysQ]

There was a report on the news a few days ago that in 2009 ALL car manufacturers are considering (with some definitely) putting the price of new cars up.... not just VW.

In the Gold Coast Bulletin yesterday there was an article about four major overseas car company CEO's attending a meeting with the hope of getting a $39 billion government bailout package (which has now increased to $54b) because they apparently were 'really struggling' in the tough market conditions.
The funny thing was that at the start of the meeting the member of government asked all four CEO's, "which of you flew a commercial airliner here".....none put thier hand up. Then they were asked, "and which one of you struggling CEOs is going to sell your multi-million dollar private jet and return home on a commercial airliner".....once again, no hands went up.

May sound off topic but the point i'm getting at is that these car companies are using this credit crunch as an excuse to raise car prices in the new year, just to return to thier ridiculous profit levels that were seen throughout 2007.

Best bet would be to take earlier delivery and beat the rise in prices. Although as said before, isn't your contract price what you will pay, nothing more, nothing less.

[Gipper]

There was a report on the news a few days ago that in 2009 ALL car manufacturers are considering (with some definitely) putting the price of new cars up.... not just VW.

In the Gold Coast Bulletin yesterday there was an article about four major overseas car company CEO's attending a meeting with the hope of getting a $39 billion government bailout package (which has now increased to $54b) because they apparently were 'really struggling' in the tough market conditions.
The funny thing was that at the start of the meeting the member of government asked all four CEO's, "which of you flew a commercial airliner here".....none put thier hand up. Then they were asked, "and which one of you struggling CEOs is going to sell your multi-million dollar private jet and return home on a commercial airliner".....once again, no hands went up.

May sound off topic but the point i'm getting at is that these car companies are using this credit crunch as an excuse to raise car prices in the new year, just to return to thier ridiculous profit levels that were seen throughout 2007.

Best bet would be to take earlier delivery and beat the rise in prices. Although as said before, isn't your contract price what you will pay, nothing more, nothing less.

If you read the fine print on the back, it allows for a price rise while you are waiting for the car. Its different in every state but in Vic, if the price from the factory goes up, the purchaser has to wear the difference. In WA I think its capped at 5%, not sure about other states.

Thanks for all your advice, appreciated

[jmj]

You should be able to ask the dealer to add a clause to your contract stating that the sale is null and void if the price increases from the agreed price. You're the consumer in tough times... grab them by the balls!

[Lance B]

You should be able to ask the dealer to add a clause to your contract stating that the sale is null and void if the price increases from the agreed price. You're the consumer in tough times... grab them by the balls!

Well, that should certainly get their attention, especially if it is a woman!

[gregozedobe]

I'd be grabbing the best price you can get now. Dealers are very keen to get sales at the moment. If the economy picks up or the Oz $ goes down then prices will increase.

If you put in a factory order now you probably wouldn't be getting it much before march 2009 anyway.

If you can get a good FIXED price contract now for delivery when you prefer then that would be the best of both worlds.

[gead]

my contract has a clause which allows them to increase the price by notifying me in writing...i then have three days in which to cancel the order or accept the car at the new price...i will not be moving a dollar north of the price on my contract....i'm sure the dealer will have queues of people willing to buy the car at the new price....

[tryingavw]

my contract has a clause which allows them to increase the price by notifying me in writing...i then have three days in which to cancel the order or accept the car at the new price...i will not be moving a dollar north of the price on my contract....i'm sure the dealer will have queues of people willing to buy the car at the new price....

i think they would have a forward contract in place so they were covered for xchange rates when they do the deal. plus vw woul also hedge the currency.

they wouldnt dare change the price - might get stuck with a car they cant sell .

[r-btype]

If the RRP goes up (or down) the end customer pays the difference, though you can opt out by notifying the dealer in writing within three days. Has happened to me once before.

[gead]

what did you do....?

[CatonaPC©]

You should be able to ask the dealer to add a clause to your contract stating that the sale is null and void if the price increases from the agreed price.

Yes, I have done this in the past.

Be nice when asking; explain your circumstances. Don't use it to deliberately extract an advantage.

[r-btype]

still bought the car (RS CLIO).

You don't have to ask for a special clause to void the deal. Read your contract, it is there in pink and white. Buying a car like the R36 (or RS Clio at the time) when they are in high demand and short supply, the dealer could sell it on to someone else easily (surely in most cases at least). Though next year is going to be interesting times for everyone, not only car buyers anddealers