Getting $ off new polo.

[schty006]

Well we just ordered a 77tsi with DSG and floormats in pepper gray and got $700 below rrp. Is this any good? Quite a few dealers werent prepared to budge on the price considering these cars will 'sell themselves' and waiting lists that are developing. I am interested to hear how other people are going getting a deal?

[MK532]

Hi schty006.

I've posted this reply against your first post also:

I bought my wife a 77TSI on Monday. We weren't able to get any discounts from RRP but I am hoping for Corporate Plus discount to be approved before we settle the purchase. The dealer was not prepared to negotiate on price at all.

I have heard from a "reliable source" that the margins on these cars are very very low and given the discount you're talking about, you got the car for less than cost.....

Josh.

[team_v]

I have heard from a "reliable source" that the margins on these cars are very very low and given the discount you're talking about, you got the car for less than cost.....

Josh.

I really doubt that.
If it was below cost the dealer would have just said no sale.

[MK532]

team_v - You're most likely right, but the "reliable source" I spoke about mentioned that a particular dealership sold two Polo's on Saturday (launch day) and only made $150.00 from the sales - and I'm pretty sure those sales were at RRP. In any case I think the margins are a lot lower than with the previous Polo, as the quality is a lot better, the specs are higher and the RRP is a little lower.

If the information I received is true, then I guess the dealer must be literally 'banking' on the customers to return to them for the ongoing servicing of their vehicles.....

Josh.

[team_v]

If the information I received is true, then I guess the dealer must be literally 'banking' on the customers to return to them for the ongoing servicing of their vehicles.....

Josh.

Or they could be banking on customers paying for expensive options like park assist which they will only ever use 4 times a year or so.
Or upselling them to a bigger engined car or even a golf instead.

[schty006]

Wow that is interesting! The car i traded received what i would consider to be a fair trade in at the top end of the red book price. The deal was initially done at $200 below rrp for the standard 77tsi with DSG with floor mats and the comfort pack included however due to availability of cars with the comfort pack and not wanting to wait 3 months the dealer deleted the comfort pack and subtracted the $500 for the comfort pack leaving it at $700 below rrp price with the genuine floor mats worth $218 thrown in.

I was certainly bargaining hard and was told no discount by 4 other dealers but these quys were keen to sell cars!

[Allegiance]

I got offered a 77TSI, DSG, Sports Pack, Metallic Paint for $28,600 . I got him down to $27,500, but this is still above the RRP prices that are on the VW website.

[schty006]

Well as i wrote in my into thread i just found out by doing more research that i could have got a 10% discount through the AMA but i am guessing that would have been off the RRP. Its a pity the paperwork has been done and a deposit paid otherwise an even better deal could have been had.

[noone]

There is NO WAY that VW would sell a new car for only a few hundred profit, makes no sense. They have to warrant the car for a start, so any major issue and they'd be going backward. They have to cover rent, fees, commission, admin, the stupid TV add with the beards, etc. If they are saying its only a few hundred after all these costs, well thats just some number based on some other numbers and does not mean much.

They don't have to negotiate on price as there are going to be more interested people than Polo's in the country for a while, when they cant move any more because the market is saturated, then they will discount... Early adopters and frugal budgets don't work well in the same wallet.

[Gti Dave]

Hmm I might wait a little longer til the Gti comes out before I make the decision to upgrade or not. Must say though, I've had my fair share of problems with my current pog and the issues are still ongoing!!! Arghhh!!! On the other hand, I do kinda enjoy driving my wife's new Fiesta and I saw a sexy 3dr one in white last night in Chapel St. Hmm.......then again one's sporty with POWER and plenty of modding to be done but troublesome and the other less power but better package all round and much cheaper and made in Germany. So confused now. *Sigh*

[Jetta5]

I managed to get a 77TSI DSG with metallic paint, sports package, bluetooth & mats for $27K flat.

That was almost $1900 off, but the advertised driveaway price at this dealer was $500 more than the Volkswagen website calculator (dealer delivery of $2000 instead of $1500).

[phaeton]

I'm looking at getting a 77TSI (man) next year around this time in Silver with the comfort pack.

SA pricing for that ORC = $25,012 without discussing discounts.

[Corey_R]

There is NO WAY that VW would sell a new car for only a few hundred profit, makes no sense. They have to warrant the car for a start, so any major issue and they'd be going backward. They have to cover rent, fees, commission, admin, the stupid TV add with the beards, etc. If they are saying its only a few hundred after all these costs, well thats just some number based on some other numbers and does not mean much.

I think that you're forgetting that there are numerous companies involved here mate.
First there is Volkswagen "Germany", the head office, and presumably they cover the manufacturing etc. Then there is Volkswagen Group Australia, who purchase the cars from the factories/headoffice. VGA also take care of the TV ads etc. Then you have the dealers, who are not even related to Volkswagen and are independantly owned.

There could genuinely be only a small margin for some of the dealers (obviously this would vary, as all dealers would have different operating costs). Warranty claims etc could actually be claimed back through Volkswagen Group Australia, and even back to Volkswagen Germany Head Office. Who knows what the exact process is. I don't. I and KNOW from your comment that you don't. So...

[RSwag]

I think that you're forgetting that there are numerous companies involved here mate.
First there is Volkswagen "Germany", the head office, and presumably they cover the manufacturing etc. Then there is Volkswagen Group Australia, who purchase the cars from the factories/headoffice. VGA also take care of the TV ads etc. Then you have the dealers, who are not even related to Volkswagen and are independantly owned.

There could genuinely be only a small margin for some of the dealers (obviously this would vary, as all dealers would have different operating costs). Warranty claims etc could actually be claimed back through Volkswagen Group Australia, and even back to Volkswagen Germany Head Office. Who knows what the exact process is. I don't. I and KNOW from your comment that you don't. So...

I can assure you that a dealer claiming he has only made $150 NETT from a new car sale at RRP is treating clients like FOOLS. As you rightfully pointed out the warranty and advertising are two completely separate issues and have no involvement from the dealer other than the warranty which they give up retail time in their workshops to facilitate. This time is obviously reimbursed along with the parts and labour costs by the manufacturer.

To make the claim that they are running multi million dollar operations with anywhere between 30-100 staff on $150 profit is just insulting to peoples intelligence, it is also a clear attempt as disguising the truth. Most dealers sell around 100 new cars a month sometimes more sometimes less but this is about the average for most majors be that either jap or euro. If we were to be generous and say that they made $500 per car on average then they would have you believe that they are running these massive facilities on $50,000 per month before wages, utilities, detailing equipment, petrol etc and this would just be scratching the surface in relation to costs involved in multifaceted business's e.g. service, parts, administration, sales, customer relations.................................

It is common knowledge that all manufacturers pay kick backs and bonus for things like volume and customer surveys but consultants cant work with nor give away the bonus's that the dealer gets. These amounts are varying and you and i will never know whether its hundreds more or thousands.

Anyway if they are charging $2,000 delivery fee then given VW have it as $1,500 on the website there is at least $500 here you ca claw back.

And on this note i thought it was illegal under trading terms for a franchisee to charge more than what is determined to be the RRP by a franchiser. Dealers may have a question to answer here f they are listing the sale price hire than what has been determined by VW Australia to be the RRP

[Billecartz]

I believe that when they say they are only making $150.00, this is in commission on the sale. The sales people in most dealerships only make a commission percentage based on how much profit they make on the car. I have it on good authority that due to the shortage of stock that most dealers are not discounting, other than what has been ordered or in manufacture or on the water, I am told that it will be October/November for new orders?

We bought a 77 TSI DSG, with all options for a bit over 31K for my wife, we ended up with around a $1200 discount, this was about 5-6 weeks ago. Our car arrives on Sunday and we should get it the first week of June, it will be one of the only cars in Australia with leather/alcantara.