Getting $ off new polo.

[Jetta5]

Yes. I got the impression a fresh factory order would arrive September or later. It seemed like there was fairly limited availability of Polo's already in the pipeline, plus there are so many combinations of transmission, colour and optional packages that it's unlikely you'll find exactly what you want.

[RSwag]

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. .

Even if this is what the consultant meant this isn't reality either, no one running multi million dollar complex's would allow individual sales consultants to dictate the level of profit a vehicle is sold for and in what numbers just so they could make as much as possible in their annual income.

The law would be set down by VW and then headed up by the dealer, the consultant is at best a lacky, by this i mean they are really there to serve you and ensure you have a good experience and settle on their particular product.

I think you will be surprised about the commissions , as some of the dealers how much they make on a minimum deal its probably closer to $50 or $100 before tax. They would only be earning $150-200 on full grossing deals. From what my brother tells me they are reducing margins as much as possible so consultants don't give away lock stock and barrel out of pure laziness. He's with Honda but kows VW guys who say its similar.

I thin more to the point (as you stated) its a closed market and a hot product. Dealers have the upper hand for now but as supply increases this will change. Just like the Golf 118kw, World Car of The Year, Australian COTY, more technology/build quality and standard equipment than a BMW 320i (roughly about the same real world space inside). All this and they would give you around $4,500 off the price in their current drive away program and are even doing similar deals on the GTi, this is why i think paying top price for the Polo just to be 3-4 months in front of everyone else is a little silly.

But if you are happy with the car and feel the price is justified just go for it!!

[Allegiance]

I got a 77TSI, DSG, Sports Pack, Deep Black Metallic for $27,100. I did get $800 more for my trade in than I had been offered at other places. Plus I also got a tint for the front windows thrown in. Also I take delivery of the car around the 15th of June

[Billecartz]

I know many sales consultants are hopeless, but there are also some good ones that I have found and buy my cars from them. On average we buy a new car every 18 months either for myself or wife. We have done this for the past 25 years and generally have to tip some money into the deal for the shortfall. If having what we want when we want it costs a bit more, that's ok as I am in the fortunate position that I can afford to do so. I always manage to get a better price than average as I buy often and establish a good relationship with the sales consultant whom is happy to help me. If you treat them like fools, expect to get the same back and most probably not the best deal. The Polo for my wife is the 33rd VAG group car that I have owned mostly 50/50 new and used, this includes VW, Audi & Porsche. So you can most likely say that I have a little experience buying cars

If you want to buy exactly what you want it costs more, if you are prepared to compromise then you generally pay less. Sometimes you can just be in the right place at the right time, although this is unusual and requires patience. I acheived a $1200 discount on the Polo and even if I waited another 6-12 months when the hype cools off I might be able to get another $1000 -$1500 or so, as remember these are low margin cars. Not a lot of money in the big picture over life of the car, maybe $500 a year over 3 years for us.

Life's short, then you die!

[victaa]

Just factory ordered a 77TSI DSG with sportspack for 26.7K, mats, tank or petrol and front side tints were included too.. dealer wouldn't budge on the price of the car at all...

[Billecartz]

What colour did you order?

[phantomcamel]

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.

Margins in the POLO are very small for the dealership. The manufracturer makes most of the money. Dealership covers costs by charging a "dealer delivery" fee. There is rally not much in it for dealership with entry level cars, so $700.00 off is pretty good for a car just launched new.

[phantomcamel]

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.

that is absolutely true, most dealeships make their money on service!

[phantomcamel]

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.
.

not much margin in VW options - they are equaliy expensive for the dealership. People always have the perception that options cost say 50% and the delaership collects the other 50% - totally unfounded I am afraid.

[team_v]

not much margin in VW options - they are equaliy expensive for the dealership. People always have the perception that options cost say 50% and the delaership collects the other 50% - totally unfounded I am afraid.

Just from my experience, protection package form the dealer valued at $1100, actual cost about $300.
Asked for just the tint, best they would do was $550, tint place down the road will do it for $245.

This may be more relevant to the protection package but i do know that a brand new 2.5k RNS510 can be had for a bit over 1k so they make a big margin there too.

Obviously some options like leather (including electric seats and heating) would be closer to the actual cost price but i doubt that amost all optins are barely allowing a profit.


As i said above though, just my experience.

[phantomcamel]

Just from my experience, protection package form the dealer valued at $1100, actual cost about $300.
Asked for just the tint, best they would do was $550, tint place down the road will do it for $245.

This may be more relevant to the protection package but i do know that a brand new 2.5k RNS510 can be had for a bit over 1k so they make a big margin there too.

Obviously some options like leather (including electric seats and heating) would be closer to the actual cost price but i doubt that amost all optins are barely allowing a profit.

You are absolutely correct - I was talking about genuine factory options; aftermarket - such as tint, protection packs have fairly good margins. Pricing also depends on quality though. The more expensive products have life time waranties rather tan limited x amount of yeras warranty. If you get a protection pack you can quiet often get the tint "thrown in" (I can feel the steely glare of all "after- care consultants" glaring down on me...)

[Corey_R]

phantomcamel - You may want to fix up your quote tags there

[phantomcamel]

phantomcamel - You may want to fix up your quote tags there

done...thx

[RSwag]

phantomcamel - You may want to fix up your quote tags there

I think it may also be appropriate that you change your call sign to show you are a dealer, your posts clearly show that you are.

The information you have supplied is incorrect, no one would believe that at $700 off the dealer is making nothing and the client is getting a good deal. Thats why large corporates build $25 million dollar complex's in Melbourne and Sydney, to make $100's of dollars per $19-27k item.......................not believable in the slightest.