Mk7 Golf GTI Discussion Thread

**Dutch77** · 23-12-2014, 09:49 PM

Just this once I may need to stand corrected, consider it my xmas gift.

With the different providers these days mostly anyone can package a car, although if it's predominantly or wholly private use and in the GTI/R price range it will often end up costing more than if just bought with after-tax dollars. Gotta do the sums to see if the corp discount changes that equation, I'd suspect not.

Would be good if we could finally summarise what the various conditions are and post it somewhere, VW as usual aren't very forthcoming with help on the issue which seems counter to the whole point of a marketing rebate.

**bobg** · 23-12-2014, 09:53 PM

Well there's this document here

http://www.golfmkv.com/forums/attach...0&d=1228264840

**Dutch77** · 24-12-2014, 08:01 AM

Originally Posted by bobg

Well there's this document here

http://www.golfmkv.com/forums/attach...0&d=1228264840

Interesting read - particularly the straight discount off list price (and how it is funded/shared) and the reduction in delivery charges.

I suspect this may be an older document and/or excludes the corporate support provided to the various professional bodies that are now included in the program. The letter Jimi referenced certainly hasn't changed.

I got something like $4k off in 2010 when I was looking to order a Mk6 GTI; in 2014 this was halved to $2k split across the list price and delivery (meaning the marketing expense may have been shared between VWA and dealer the same way). The flipside was they had little interest in negotiating further in 2010, but in 2014 there was still plenty of room to do so as per my final buy price.

It is worth noting as well though that it was six months plus in 2010 for a GTI, in 2014 at the time I was shopping I pretty much could choose any color, spec combo and PP or standard and get delivery within a few months.

**bobg** · 24-12-2014, 09:29 AM

Ok guys, so it turns out I wasn't eligable for the corporate program afterall... Essentially the car must be part of the a salary packaging deal.

That's the bad news... Good news is I just purchased a GTI

Ended up costing $48k for dsg,leather and carbon steel, so about 10% off which I'm happy with.

The only thing that sucks is a have to wait 3 months until it arrives

**Dutch77** · 24-12-2014, 04:23 PM

Glad to hear it, the wait is painful but worth it - be thankful it isn't six plus.

**Matt P** · 24-12-2014, 04:38 PM

Originally Posted by Dutch77

..., although if it's predominantly or wholly private use and in the GTI/R price range it will often end up costing more than if just bought with after-tax dollars. Gotta do the sums to see if the corp discount changes that equation, I'd suspect not...

I'd disagree with this as a blanket statement. Far too many variables to make the call. Person earning $30k a year travelling 1,000kms per annum? Sure, its probably dearer, that guy doesn't really pay any tax anyway. Person earning $250k driving 18,000kms per annum.. I'd eat my hat if it wasn't worth their while (source, worked for a novated leasing company for 7 years, built my own spreadsheets to check viability)

It also comes down to your other alternatives for purchase. Are you a cash buyer, would you need a part/full loan, do you have access to a home loan to redraw etc.. Also if you're a cash/redraw buyer, don't forget the opportunity cost of having the best part of $50k tied up in an asset for the period of ownership

You will find that salary packaging companies get preferential pricing on servicing etc.. if they're being billed for it rather than you paying and reimbursing. Probably less value in that these days with capped price stuff.

Originally Posted by Dutch77

Interesting read - particularly the straight discount off list price (and how it is funded/shared) and the reduction in delivery charges.

I suspect this may be an older document and/or excludes the corporate support provided to the various professional bodies that are now included in the program. The letter Jimi referenced certainly hasn't changed.

I got something like $4k off in 2010 when I was looking to order a Mk6 GTI; in 2014 this was halved to $2k split across the list price and delivery (meaning the marketing expense may have been shared between VWA and dealer the same way). The flipside was they had little interest in negotiating further in 2010, but in 2014 there was still plenty of room to do so as per my final buy price.

You are correct, that PDF is VERY out of date. The concept of "percentages" off is dead, although the dealers still do "share" the discount. It varies model to model now and is changed regularly (i.e. first shipment of an all new model, the car won't be offered anything, once it comes on its a small discount, as the cycle goes on it gets bigger etc..). There are often instances where retail promos are better than fleet (i.e. the driveaway promos are usually cheaper than corporate plus for most cars)

**Dutch77** · 24-12-2014, 07:13 PM

Originally Posted by Matt P

I'd disagree with this as a blanket statement. Far too many variables to make the call. Person earning $30k a year travelling 1,000kms per annum? Sure, its probably dearer, that guy doesn't really pay any tax anyway. Person earning $250k driving 18,000kms per annum.. I'd eat my hat if it wasn't worth their while (source, worked for a novated leasing company for 7 years, built my own spreadsheets to check viability)

It also comes down to your other alternatives for purchase. Are you a cash buyer, would you need a part/full loan, do you have access to a home loan to redraw etc.. Also if you're a cash/redraw buyer, don't forget the opportunity cost of having the best part of $50k tied up in an asset for the period of ownership

You will find that salary packaging companies get preferential pricing on servicing etc.. if they're being billed for it rather than you paying and reimbursing. Probably less value in that these days with capped price stuff.

You're welcome to disagree, I didn't intend it to be a blanket statement - more a case of I'm not here to give advice in public, give me a call to discuss further type of thing. I was just saying that in most instances I've seen if you're a private driver (ie using statutory rate over log book) the more expensive cars often don't work these days at the flat 20%. There are ways around it of course, but for average people the difference is minimal and often not worth the costs if they are passed on. If you're part of a fleet where the employer swallows this cost different story again.

As for source of funds, that's unrelated to the packaging. A home loan redraw at 4.6 to 4.9% is always going to beat alternative finance sources - lease or otherwise. But you can still organise your own finance outside a novated lease.

There's definitely a place for it while our tax system provides the incentives to do it - I suspect those days are numbered no matter how much dealers whine, there is no local car industry to protect anymore and frankly the tax expenditure on that concession would be MUCH better spent elsewhere.

PS: not having a dig, from prior discussions I know your knowledge and background in this area is spot on.

**Dawson** · 06-01-2015, 08:27 AM

Originally Posted by Brendan_A

Hi, how's the fix for the clunk in the suspension going?

Had ours in today to replace the RHF lower control arm and so far the noise has gone. Will monitor it and see how it goes. Fingers crossed.

Hi Brendan,
Sorry for the delayed response, I've only just seen your post. I dropped mine back in this morning for the 5th time, see how it goes. The manager of the service center has taken over the case and is going to escalate it, he wants it fixed. Good to hear yours is hopefully fixed.
They had it in before Christmas and replaced all the bolts and bearings connecting everything. My thoughts are it must be the strut if that's the only thing left to replace.
In the mean time they've given me a manual caddy to drive, haha.

Will let you know how it goes.

**Brendan_A** · 06-01-2015, 10:13 AM

Originally Posted by Dawson

Hi Brendan,
Sorry for the delayed response, I've only just seen your post. I dropped mine back in this morning for the 5th time, see how it goes. The manager of the service center has taken over the case and is going to escalate it, he wants it fixed. Good to hear yours is hopefully fixed.
They had it in before Christmas and replaced all the bolts and bearings connecting everything. My thoughts are it must be the strut if that's the only thing left to replace.
In the mean time they've given me a manual caddy to drive, haha.

Will let you know how it goes.

Hi Dawson,

That's not good to hear. Hope they get it sorted for you soon. It's been two weeks since they fixed ours and all is going good

Have fun in the caddy..