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Volkswagen Passat Prices Paid and Buying Experience

3274 messages, Last post on Oct 09, 2008 at 2:19 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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I went to a dealer to deal on a 2002 GLX Passat (not on the lot but available by dealer trade). They quoted 28950 + T,T,L and 199 processing fee. This is 1,000 over invoice and according to Edmunds this is higher than the TMV in my area (Nashville, TN) What killed the deal was the offer for my trade-in, a 97 Mazda 626 ES. The car is in clean condition with 52,300 and loaded with all the options. Edmunds and KBB indicates the trade in should be around 8,000. They offered 6,500. They would not negotiate, I decided to look around for a better deal. Any thoughts or help would be greatly appreciated. Thanks |
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Don't be offended...Several things involved here...1st...regardless of market conditions, no one will ever give you *Wholesale* for your trade. This is just not done, unless the car is very special...When your trade-in is appraised a couple of things happen...The first is a look at *Karpower* the Kelley CD for the current 2 months, March/April, etc. Next someone will drive the car..it starts, turns left, turns right...well you get the idea...No one really knows until the Trade-In goes through the very basic Smog & Safety does anyone get the 411 on the car...Problems that the previous owner may have been genuinely unaware of...and so it goes... The other very important thing to bear in mind is the fact that the Used Car Market today is suffering... big time. Since 9/11. 0 Down, big Rebates, 0% financing, have created a very rough environment for previously owned vehicles. Most Dealers will look at any trade from this point of view... Best advice...If your car is not an integral part of this transaction; sell it yourself...you will receive the better return... |
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I'm sorry to beat the dead horse...... But, If the port prep fee ($25), floor plan interest ($92), and the regional advertising fee (that varies depending on your area) are costs that VWOA dealerships must recover and are not negotionable, then why doesn't VWOA just list this information right under the destination charge? VWOA could even list each regional market and its corresponding ad fee in A-Z order if there aren't too many, i.e, Northeast Regional Ad - $345, Southeast Regional Ad - $150. (Listing regional markets on the MSRP would compensate for dealers who need to ship cars outside of their regional marketing areas.) Surely, the word must be going back to VWOA that these charges are confusing their customers and causing them a less than satisfactory sales experience not to mention the amount of time dealers must spend explaining the charges. Since the port prep fee, the floor plan interest reserve fee, and the regional ad fee must be paid by every dealer on every car in every state, then the simple solution would be to list them on the MSRP just like the destination charge. I did read Edmund's small print on the regional ad fee. So that I could budget the amount I would need for my area (according to the posts here some dealers charge this and some don't), I called VWOA Customer Care Center to get the fee for my region. (I didn't mind that Edmund's didn't list the fee. I was just glad that they gave me a heads up about it. I've got enough where-with-all to take it upon myself to take it to the next level.) So, I went right to the source and called VWOA and asked them myself. I assumed they could punch in my zip code and tell me the fee for my area. I called. The rep didn't know the answer but placed me on hold while he checked. He returned and stated that VWOA doesn't charge a regional ad fee. He then asked for the dealer who wanted to charge the fee. I explained that I didn't have a dealer yet, I just wanted to know the fee for my area so that I could account for it in my budget. I thanked the rep and hung up the phone. I didn't go ballistics. I thought either I didn't explain it well or it's not a direct charge from VWOA but some other type of charge. I plan on calling VWOA again. And no, I don't have a problem paying mandatory fees. I just want to be prepared for them. |
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I don't sell VW's but I imagine they are similar to other makes in that the manufacturer does not charge the ad fees directly. They are typically charged by the regional associations of dealers that produce the ads for a given region. I would expect that VW0A doesn't charge any ad fees but the regional associations do. This is why these fees are not seen on MSRP stickers. The stickers come from the manufacturer but the ad fees are levied by whatever regional association the car ends up in. |
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| If the fees are all mandatory, and included in the cost of every car sold to every dealer, why doesn't VW just up their invoice cost to the dealers to include the fees? These fees don't increase MSRP, so there shouldn't be a marketing advantage to accounting for the fees in the current manner. It would seem to eliminate a lot of real world confusion that exists throughout the VW posts. | |
| I think there are 2-3 reasons why VW (or any manufacturer) doesn't up the invoice. The first is that they don't acknowledge the fact that we know what the invoice is - to them its private business even though everyone knows it. Second, it's probably more convenient for their accounts department to break the shipping/whatever costs out from the car's value. Finally, for the advertising costs, like landru was saying, they vary from region to region. The manufacturers all hold true to the fantasy that the MSRP is the price and leave the dealers to handle the reality. | |
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You have it down cold...They are on the Invoice... just as you have described...If you would care to see examples of several invoices, get me a fax number, and I would be happy to send them out to you... |
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If it's all on the invoice, then it seems to be more of an Edmunds (& others) problem. I'm not actively shopping for a VW, so I'll take your word for it. You make a great ambassador for VW. From reading these boards, if more VW dealers were like you, they could increase their market share by an easy 10%. keep up the good work. Off topic question: Any info on the release date of the New Beetle convertible? |
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Right again...I have made mention of these line item omissions many, many times here, but to no avail... New Beetle Cabrio productiom is scheduled to commence in August... |
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| Looking at this car. No other frills. Maybe Homelink, maybe not.Will try to offer dealer a price of $21,575. That's with a $500 profit accoring to Edmunds. Also included $25 Port and $92 Other charges. What am I missing? Ad fees? How much in Fla. Does this sound reasonable? Dealer says he will offer me car at $300 over invoice, but I haven't seen it yet. What other extra fees might be in there. Sticker price on it is approx. $22950. Let me know. Thanks. | |
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