A warning to all! Corporate Pricing Program!

[PeteP]

A warning to all

Hi , my employer IS listed as one of VW Corporate Pricing Program participants. My HR corresponded with the dealership directly and all appeared to meet the criteria for the VW discount/rebate. The new car was picked up 2 days ago and then to my horror I get a call from WV yesterday afternoon advising that corporate decided the HR letter was not eligible for the discount. It needs to have the words " this vehicle forms fart of my remuneration package". I am entitled to a Novated lease but this was an outright private purchase. The knew this from the outset, this was not a miscommunication. The car is now in my driveway, all monies settled, registration and insurance under name and now they are after the $2,500 because they didn’t do their checking. Not sure how this will end but its left a VERY sour taste in my mouth. Had this been raised pre delivery, then we would have been able to work something out. They can KISS goodbye servicing and future upgrades/purchases at Bayside Barloworld. And I was in the market for another upgrade!!!!

[Candyman]

Oh man, surely they can't do that now ?

Isn't it their responsibility to check validity ?

You didn't intentionally mislead ?

Good luck mate

[PeteP]

Hi

No not mislead, in fact do you want to know how honest I was during this process. I had a 10yo Holden Frontera trade in and (sell for around $10,000)... I told them that there is a slipping transmission issue ($1000k fix for them) to be honest and upfront.. karma!! They gave me only $2000 for the trade in and we reluctantly accepted.

Re the corporate discount, they raised it not me. Once they looked on the systems that my employer was eligible and after several direct interactions, he gave a double thumbs up at his screen when my HR colleague sent him the letter. VW corporate have now rejected it post settlement!!!/Final payment.

The dealership contract stated

" Customer acknowledges that this purchase is conditional upon the provision of appropriate paperwork PRIOR to Delivery as per VGA guidelines"

I suspect with the car in my driveway we can comfortably say we are post delivery, all settled, ownership is mine.

Barloworld follow-up has been fantastic, sms, calls that everything is ok, this salesman though has given me "that middle of your stomach pain" and a sleepless night sleep. Turned what should have been a joyous occasion into negative one.. On the plus, the 2011 Passat Wagon is sensational.

Would be happy with a call now saying, our stuff up, enjoy your car instead of chasing me for $2,500. Never going to step foot there again. Will find another dealer who will get all my service and new car business.

[Blitzen]

As far as I see it, the contract is singed, the car is delivered, and the money is paid.
The problem is theirs, not yours.

[mikinoz]

I believe that you are right. Once you have signed the contract and settled the amount outlined, and now simply VWA will not honour the rebate to the dealer based on incorrect paperwork and are just pursuing you for it.

I loathe to give this advice, but I would respond that you are willing to take legal advice and if warranted take this to the media as a harassment.

The lay of the land is they have no right to claim over you through debt collection, or over the goods themselves.

You would think that the goodwill of letting this go would be better than harassing a client.

[The_Hawk]

Your novated lease IS part of your "salary package"... Surely someone can write and sign that for you??

All that aside, it sounds pretty poor to attempt to raise it at this point.

[PeteP]

Thanks for your feedback guys .. Despite the post sales issue, I have still tried to help Barloworld Bayside VW get their "letter" to corporate by having our HR person speak to WV Corporate directly (today) . I don’t know the outcome of how the went. After this mornings conversation, at this stage, it appears they will just cut their losses. Lesson Learnt to them to do review their processes before releasing the new cars to their customers. I'd love a response back along the lines of "apologies for yesterday, it was our error, this is the end of the matter, Enjoy your vehicle".

Solicitors, media and so on is a VERY last resort. Im not a vindictive, manipulating , revengeful person.. Just want this to be acknowledged as a DEALER mistake and we all get on with it.

[wai]

What does the sales contract you signed when the order was placed say?

If it does not say that this is an outright private purchase, then chances are they can cancel the contract and recover whatever is theirs because the information provided was incorrect.

The thing about deals with VW Group and businesses, organisations or associations is that the dealer only gets reimbursed on condition that the terms of the arrangement are met. You will see thay all sale contracts will have fine print that cover just such instances. The ownership is only transferred when all outstanding payments are made, otherwise ownership remains the dealers. This is much the same as in normal vehicle finance agreements. The vehicle is registered in your name, hwever it is under finance and until all payments are made, it is still the property of the seller.

I know that when I got my discount for being a member of Engineers Australia, I had to povide them with membership renewal notices for the past two years, AND provide them with a print out of my current status. This was aso mentioned in the contract I signed when I placed the order to get things rolling.

As you said, the VW wants a letter stating that this is part of a remuneration package, but you also say it is not. You might be entitled to a novated lease, but this is not what you have with this purchase.

If the situation was reversed, you would not like to be the one out of pocket.

They might be prepared to wear the loss, however from their point of view, why should they?

The dealer could also advise VW and this could jeopardise the arrangement your employer has with them.

[PeteP]

Hi Wai

You make some good points. Bottom line is in the timing, happy to accept that Corporate where not going to honour the rebate but POST final SALE/transaction??!! Had we had this known before final payment, we would have come to some other agreement, different car, less options etc etc.. I also would not have let me trade in go for such a low price. Domino effect

This was never a novated lease (always a private cash purchase) and this was never about trying to cheat the process. The letter my HR provided got the dealers double thumbs up (literally did that to his screen once the email came through).


Politely said by many colleagues around me, pardon my French, they F@#$'d up and now going you for their short comings..

I am a loyal beast, I will give you return business, servicing, referrals. For a $2,500 shortfall, they can make up for that in one weekend pen stroke!

[hooba]

On a previous new car I ended up financing it with St George Bank via the dealer as they had a great rate. I submitted all my paperwork and picked up my car, and the next day was enjoying my new car when the phone rang.

It was the bank, and the lady said that there was a problem with my paperwork. My payslips didn't have an hourly rate on them, only my monthly wage and annual salary. She explained that this was a problem and that she couldn't process my paperwork unless she had an hourly rate to verify my salary. This discussion went around in circles for about 10 minutes (you can see what I earn right? Yes, but I need your hourly rate. My employer doesn't pay me an hourly rate, and they don't produce a payslip with an hourly rate)

In the end I offered her a solution. I told her that I was happy to return the car to the dealer and cancel the contract She managed to process my loan.

[wai]

Hi Wai

You make some good points. Bottom line is in the timing, happy to accept that Corporate where not going to honour the rebate but POST final SALE/transaction??!!

Look for the escape clauses and the E & OE. These sales agreements are gone over with a fine tooth comb by corporate lawyers.

The other thing is that there are two parties here. One is VW Group who have the agreement with your employer, and the second is the dealer from whom you purchased the vehicle. The dealer believed that this was OK, however VW Group have said no, and it is VW Group who pay the dealer the discount. Literally, the transaction is open as it is conditional on the payment from VW Group.

At best, the dealer decides to let it go, and they will recover it on other sales and servicing to your employer. That may not go down too well with your employer. They do not miss out on anything. Much like having a go at the people who are preparing your meal at a restaurant, you do not want to get the people who will be responsible for servicing your vehicle off side. They will recover the amount somewhere along the line.

At worst, the vehicle will be repossessed from your driveway or where you park it where you work, because as far as the dealer is concerned, the sale has still not been completed because full payment has not been made.

I am a Consulting Engineer, and all my invoices clearly state "provision of works does not transfer ownership of the works. Transfer of ownership occurs on receipt of full payment".

Personally, I would be making an appointment with the CEO of the dealership and trying to work out a compromise given that the purchase is a private purchase and not part of a salary package. I take it there was just you when you negotiated the price. They might have F@#$'d up, however they could just as easily say that you misled them.

You are going to have to work with this business for something like the next three years. Even if you decide to have the servicing done elsewhere, your employer might not, and word spreads very quickly through the dealership grapevine.

Both parties should put it down to experience and split the difference. As Penny said to Sheldon "I dare you to eat it..."

[PeteP]

Happy to say the dealer has agreed to acknowledge this as a error on their behalf and leave it at that....thank god!!!! All is well that ends well. Now back to playing with the new Passat,,, if it bloody stops raining in Melbourne.