Corporate Plus Discount lowered?

**J-P** · 09-04-2010, 11:34 AM

Hi,

Can anyone confirm if the Corporate Plus Discount has been lowered to around 6%?

I placed an order last year for a Passat 125TDI and was given 10% discount. Now that the vehicle has arrived and due for delivery I'm being told that unfortunately VWA has lowered the Corp Plus Discount and now I only get $2750 discount on $45990. Discount isn't an even percentage, it's like 5.98%

The dealer is trying to be nice about it and has sweetened the deal further so that my balance has barely changed but I was expecting some saving from the lowered 2010 prices.

**R34** · 09-04-2010, 07:29 PM

Didn't your order have an agreed price?

**team_v** · 09-04-2010, 07:37 PM

There is a part of the contract stating that vw may increase of decrease prices.
The balance hasn't changed but the corporate discount amount would have changed to reflect the reduced mport duty.

**J-P** · 09-04-2010, 08:18 PM

Originally Posted by team_v

The balance hasn't changed but the corporate discount amount would have changed to reflect the reduced mport duty.

How does a reduced import duty lower the corporate discount? The discount is a percentage and should remain constant. Yes the reduced import duty has lowered the original retail price from 46990 to 45990 but given a 10% corporate plus discount that would only reduce the discount by $100, not around $2000.

Look I'm not that sour about it since the price hasn't exactly increased - it dropped and somehow, conveniently, it appears that VWA has managed to not make that apply to existing contracts. Not sure if it applies to contracts going forth though but others may want to be aware of this if they expect a 10% corporate plus discount. It was also poor form on VWA's part I think to not honour existing contracts - I feel they are taking advantage of the reduced import duty knowing few will cancel contracts when prices have not changed for them.

Hey at least I didn't get a call saying the delivery date has been delayed by months as other's have. It's spot on time.

**team_v** · 09-04-2010, 08:41 PM

I am just providing my opinion here so the best bet would be to contact the dealer to find out exactly what happened.

All i am saying is that you signed a contract for a specified price.
External forces have reduced the RRP and the cost for other options on the car so the corporate discount or dealer delivery has to be modified in order to keep the original price you signed for constant.
Since dD is pretty low for corporate discount anyway, they just reduce the value of the discount to balance the reduced cost.

Whilst you may complain that the price isn't being passed on, you did sign for the car before the duty was dropped.
Also consider if the opposite had happened, if import duty went up and they increased the value of the discount to 12-13% to balance it, would you still be complaining?

In the end, you are still paying what you would have originally paid so the "loss" isn't a real loss at all

**J-P** · 10-04-2010, 01:22 AM

Fair points. As I said I'm not that concerned about it as price has not gone up. If what you suggest is true then it would just be nice if everyone was honest about it rather than make up "excuses". Back in January I was told any price reduction on the 2010 model would be passed on in full so you can understand my surprise when this reduction happens to be offset by some other increase (or less of a discount in this case).

Do you think if the price had increased then the corporate discount would have increased to make up the difference - I doubt it. They would just go straight to the contract clause that says the total may be adjusted to reflect variation after order date and prior to delivery date on the price of the vehicle and accessories.

Anyway all this is just speculation. I'm being told the corporate plus discount has been changed by VW Australia. Apparently this occurred on Feb 15, so I'm wondering if anyone else has noticed this.

**kiwiklogg** · 10-04-2010, 10:22 AM

I was also advised by Barloworld Mascot, back in January, that the corporate discount had been reduced - but I don't recall the figure. It might have been 5-6%.

I subsequently purchased a Passat wagon (not from them) and am anyway not completely convinced having access to the corp discount makes that much difference - at least in agreeing the contract price. I'd speculate that a private buyer, without access to the corporate plus discount, could probably still achieve the equivalent discount just through shopping around, knowing the product and negotiating well.

Still, as for a dealer upping the price on delivery over what was agreed - that must surely be an absolute last resort for them. I wonder if that has ever happened, that they have pointed to the clause. Its a sure fire way to lose customers, generate bad word-of-mouth and would also assume it gives the buyer the right to rescind. The dealer would be better off taking the hit and letting the customer walk away happy.

Enjoy the new wheels!!

**hosko11** · 10-04-2010, 10:29 AM

The discounts are now fixed amounts and vary by vehicle. Corporate Plus on the R36 (wagon) is $3000. I saw the new discount schedule the dealers have, but didn't think to take note of any other amounts.

**J-P** · 10-04-2010, 02:07 PM

Thanks for the info. It seems this indeed has happened. So far then we seem to know the following are the new corp plus discounts:
- R36 $3000
- 125TDI Highline $2750

Not much to write home about and any broker or bit of good negotiating should see someone do better than that. Seems the corporate discounting is next to useless now. I wonder if other manufacturers have followed suit. This could damage VW sales if other corporate customers get an automatic 10-15% discount on other brands.