New VW - cost + £99
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Discussion

AA88

Original Poster:

397 posts

171 months

Wednesday 6th August 2014
quotequote all
So I've just got home and found on the mat one of those 'invitation only' leaflets from my local VW garages.

Now I've always assumed they are a way to drum up some extra sales - fair enough.

This one though is offering all new VW vehicles at cost price plus £99... how is this possible? Anyone know what that might make something like a Golf R ?

Edited by AA88 on Wednesday 6th August 19:33

Defcon5

6,470 posts

220 months

Wednesday 6th August 2014
quotequote all
Cost to the dealer, or cost to make?

Vast difference between the two I expect

Krikkit

27,938 posts

210 months

Wednesday 6th August 2014
quotequote all
Defcon5 said:
Cost to the dealer, or cost to make?

Vast difference between the two I expect
Quite! Sounds alright for the dealer, nice easy sale.

AA88

Original Poster:

397 posts

171 months

Wednesday 6th August 2014
quotequote all
Defcon5 said:
Cost to the dealer, or cost to make?

Vast difference between the two I expect
Cost to the dealer... still doesn't sound like a great deal for them though..

Urban Sports

11,321 posts

232 months

Wednesday 6th August 2014
quotequote all
Cost to the dealer + £99 and of course the back end money the dealer receives for selling the unit.

When I worked for them years ago showroom would discount a maximum of say 5% giving them some margin, after the sale they would also get back end money as it was called from the manufacturer which mean that to actually break even on a car for example a golf you could have given away 15%.

I was in fleet and would regularly dip in to back end money say 8% - 9% maybe more if the order was for enough units.

Disclaimer - this was 10+ years ago so figures etc might not be totally accurate etc.

So they are still making a decent % plus the drag you in figure of just £99.

forzaminardi

2,298 posts

216 months

Wednesday 6th August 2014
quotequote all
Some might take that as a challenge to talk them down to cost + £59...

750turbo

6,164 posts

253 months

Wednesday 6th August 2014
quotequote all
Urban Sports said:
Cost to the dealer + £99 and of course the back end money the dealer receives for selling the unit.

When I worked for them years ago showroom would discount a maximum of say 5% giving them some margin, after the sale they would also get back end money as it was called from the manufacturer which mean that to actually break even on a car for example a golf you could have given away 15%.

I was in fleet and would regularly dip in to back end money say 8% - 9% maybe more if the order was for enough units.

Disclaimer - this was 10+ years ago so figures etc might not be totally accurate etc.

So they are still making a decent % plus the drag you in figure of just £99.
Yep, plus PCP deals, Finance deals, add ons (GAP etc)

Marketing at its best? (Or worst wink )

Urban Sports

11,321 posts

232 months

Wednesday 6th August 2014
quotequote all
750turbo said:
Urban Sports said:
Cost to the dealer + £99 and of course the back end money the dealer receives for selling the unit.

When I worked for them years ago showroom would discount a maximum of say 5% giving them some margin, after the sale they would also get back end money as it was called from the manufacturer which mean that to actually break even on a car for example a golf you could have given away 15%.

I was in fleet and would regularly dip in to back end money say 8% - 9% maybe more if the order was for enough units.

Disclaimer - this was 10+ years ago so figures etc might not be totally accurate etc.

So they are still making a decent % plus the drag you in figure of just £99.
Yep, plus PCP deals, Finance deals, add ons (GAP etc)

Marketing at its best? (Or worst wink )
Of course.

AA88

Original Poster:

397 posts

171 months

Wednesday 6th August 2014
quotequote all
750turbo said:
Urban Sports said:
Cost to the dealer + £99 and of course the back end money the dealer receives for selling the unit.

When I worked for them years ago showroom would discount a maximum of say 5% giving them some margin, after the sale they would also get back end money as it was called from the manufacturer which mean that to actually break even on a car for example a golf you could have given away 15%.

I was in fleet and would regularly dip in to back end money say 8% - 9% maybe more if the order was for enough units.

Disclaimer - this was 10+ years ago so figures etc might not be totally accurate etc.

So they are still making a decent % plus the drag you in figure of just £99.
Yep, plus PCP deals, Finance deals, add ons (GAP etc)

Marketing at its best? (Or worst wink )
Ahh interesting to know! So still some deals to be had as a customer then it seems.

daemon

40,169 posts

226 months

Wednesday 6th August 2014
quotequote all
AA88 said:
So I've just got home and found on the mat one of those 'invitation only' leaflets from my local VW garages.

Now I've always assumed they are a way to drum up some extra sales - fair enough.

This one though is offering all new VW vehicles at cost price plus £99... how is this possible? Anyone know what that might make something like a Golf R ?

Edited by AA88 on Wednesday 6th August 19:33
They'll be working to get a quarterly backhander from the manufacturer for meeting / exceeding targets.