It pays to shop around...

[Martin Randall]

I'm probably repeating established wisdom, but my recent experience of ordering a new Cali reinforces the advice to shop around and haggle! I first went to the dealer geographically nearest to where I live and got a price. I then went to a dealer with a reputation for offering the keenest prices - and got a significantly lower quote. So back to the "home" dealer and asked if he could match the quote - which he did without any fuss or bluster. And got my business! Unfortunately nobody was able to jump the insanely long queue for new vehicles so I'm expecting to wait anything up to a year......but I'll keep you posted! It also makes you think about the sorts of margins they must be working on if they're so ready to offer heavy discounts........

 

[blondebier]

With an Ocean with a few toys coming in at over EIGHTY THOUSAND POUNDS I'm not surprised.

They're laughing all the way to the bank even if they offer customers a 12% discount.

 

[Martin Randall]

Sure. But mine came in well below £70K - still not exactly a snip!

 

[Camperfamily]

Noticing that you’re in Shetland, is Hawco Inverness your closest dealer?

 

[Martin Randall]

Actually Aberdeen is "closest" in terms of travel time, so that's where I've placed the order.

 

[66tim99]

I'm probably repeating established wisdom, but my recent experience of ordering a new Cali reinforces the advice to shop around and haggle! I first went to the dealer geographically nearest to where I live and got a price. I then went to a dealer with a reputation for offering the keenest prices - and got a significantly lower quote. So back to the "home" dealer and asked if he could match the quote - which he did without any fuss or bluster. And got my business! Unfortunately nobody was able to jump the insanely long queue for new vehicles so I'm expecting to wait anything up to a year......but I'll keep you posted! It also makes you think about the sorts of margins they must be working on if they're so ready to offer heavy discounts........

Yes given the demand why is anyone discounting? And then to let dealers strike deals with Drive the Deal and AutoeBid (one phone call, 12% discount) makes a mockery of their price list, and would I imagine make VW's best customers (those who pay list price) feel abused. It also favours the big dealers who can 'pile-em-high and flog-em-cheap' whilst the smaller customer-focussed dealers can't compete and we risk losing them.

 

[blondebier]

Yes given the demand why is anyone discounting? And then to let dealers strike deals with Drive the Deal and AutoeBid (one phone call, 12% discount) makes a mockery of their price list, and would I imagine make VW's best customers (those who pay list price) feel abused. It also favours the big dealers who can 'pile-em-high and flog-em-cheap' whilst the smaller customer-focussed dealers can't compete and we risk losing them.

If people want to pay full sticker price it's their money and they are free to do so.

Why pay more than you have to though?

With prices so high I'm not surprised that dealers are competing for the business.

The OPs post clearly describes this. He'd probably have gone to the cheaper dealer had his local one not reduced his price.

There is clearly a lot of money to be made here, some dealers have decided that their slice is enough if they sell enough units.

 

[66tim99]

If people want to pay full sticker price it's their money and they are free to do so.

Why pay more than you have to though?

I don't suppose many people want to pay full sticker price, but some (my Mum) would feel 'cheeky' asking for a discount. Do those list price payers know that with one phone call to DtD they could save £8000 with someone else doing the haggling?
I'm surprised VW allow discounting.

 

[blondebier]

I guess the dealer would probably throw in a few accessories if someone (like your Mum) paid them full price.

I can't think that many people would expect to pay the full brochure price for a vehicle these days. WhatCar put an end to that years ago.

The discounts VW offer on their passenger vehicles can sometimes be as high as 25%. We're a long way from that at the moment.

Ultimately these things are only worth what someone is prepared to pay on the day.

Like most things if you shop around you can normally find someone with an attractive deal that wants your business. If you don't shop around you'll either pay the price advertised or you'll walk away.

You can't be upset with the manufacturer if someone else got a better deal though.

 

[Vagophile]

I don't suppose many people want to pay full sticker price, but some (my Mum) would feel 'cheeky' asking for a discount.

Anyone remember the days of Retail Price Maintenance and the uproar when abolition was proposed?

 

[Lambeth Cali]

My brother worked for Ford for 10 years and then Honda, and we used to get discounted cars, using a family voucher, with usually just over 25% off. The dealer never minded doing these and all I think they gained was the ‘registration‘, which is linked to a quota bonus scheme. So 75% was cost price our just above.
Our 2008 174 Auto SE has every available extra and was apparently £43k new all in. We were told it was an Ex VW employee vehicle when we bought it in 2009. This seemed plausible as my brother’s cars all had every extra, and the Cali was about 15 months old, which was roughly how long my brother kept his cars. We got our Cali with 5,000 miles on it for about 75% of £43k. With now 40,000 miles I think we’ve lost about £7k over our 12 years of ownership. When I told my brothers how much I had paid, I remember them saying “That would pay for a lot of holidays!” True, but the depreciation would have struggled to cover 12x4 annual EasyJet flights.
I think you now get a ID3 with 20% off. It’s very tempting to ask for 25%! Especially as VW seem keen to make it the bestselling car.

 

[willwander]

Buying a car through a dealership seems like a very outdated business model. I think we will see more online buying/leasing direct from manufacturer like Tesla.

 

[SkiBoy]

I started in my home town and didn’t even het returned phone calls. I can’t remember the exact figures, but they wanted an arm and a leg.

Went further a field started £5k lower than my local dealer at 73, then gave dealer discount at 3.5, then manufacture discount at 1.5, total discount was 5.3, added delivery (as you do)

Was looking at 68, then wham bam ..... VAT (what a killer)

Spoke to Accountant about VAT, but he just fell off his chair laughing

Road tax was £165.00, that was a bonus

That was a 4x4 auto with a sprinkle of options, including 600 for different coloured light .... that was the wife, not me

 

[reserves]

I love a deal but not many around at moment as can’t see how VW would want to incentivise anymore purchases as they are so far behind.

Last quarter VW were offering £1,800 cash incentive (on top of any dealer discount, so zero cost to dealer) plus 2.9% apr.

This quarter there is £0 contribution from VW, 4.9% apr (even though the rest of the VW range is 2.9)

Not the best time to buy Jew or 2nd hand, but there’s no fun in waiting, especially as I can’t see anything changing next quarter.