Getting $ off new polo.

[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.