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Volkswagen Passat Prices Paid and Buying Experience

3319 messages,  Last post on Dec 08, 2009 at 12:12 PM

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What is this discussion about? Volkswagen Passat, Sedan, Wagon

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#278 of 3319 If not Passat... by snurple Dec 07, 2000 (6:51 am)
Have you looked at the Saab 9-5 wagon? One of the key factors with a Saab is that they have lousy resale value and they're "quirky"--which translates into a low price. If you plan on keeping the car for a long time (which seems to be the case, based on your Volvo), then it may be an option to consider. I saw two 2000s a month or so back that I could have snagged for 30/31K--they were cutting $6K off MSRP, and I know that I could have talked them down even further. Sometimes I toy with the idea of waiting until Sept/Oct of next year and snagging a 2001 2.3T (w/185hp) for cheap. I think that the A6 Avant has about 2" MORE rear legroom, but actually a few cubic feet LESS cargo space than the Passat. With the seats folded down, the Passat still has the overall edge. Technically, I think that the Passat has the second largest cargo space for a wagon--apparently, only the Mercedes E320 exceeds it. Or is your interest in a BIG car more about safety? I would consider any of these models to be very safe. Are you set on AWD--both the Saab and the FWD Passat have solid traction control...
#279 of 3319 Dealer Cost by cvinton Dec 07, 2000 (3:44 pm)
A couple followup questions on pricing a Passat: The site I referred to learn more about determining a fair price for a new car (http://www.carbuyingtips.com/) suggested that a 5% profit over actual dealer cost was fair. Does this seem in the right ballpark? Secondly, he does not include the destination charges, administrative fees, advertising fees, etc. as part of the dealer's cost. Does this also seem fair? Thank you, Cab Vinton
#280 of 3319 It's fair... by snurple Dec 07, 2000 (5:12 pm)
carbuyingtips.com is a great site. I like the "5% rule" because it gets us back to the *actual price* the dealer pays for the vehicle, and indicates dealer gross profit. Some sites recommend a "fair price" of 3% over invoice--but, I think that this only reinforces the false idea that invoice is the true cost to the dealer. I like the idea that any additional fees added in should be covered by a fair dealer profit margin, and should not be "passed along" to the customer--because, all too often, such fees are arbitrary. A recent post mentioned an attempted charge of a $700 "environmental fee" (as if the dealer was out planting trees to counteract the "emissions" of his dirty business!). The 5% logic continues by suggesting that destination fees are similarly arbitrary (i.e. not directly related to the delivery of an individual vehicle)--AND, in any case, all additions are fully covered by the FAIR 5% margin. Any dealer, who readily acknowledges this line of reasoning is fine in my book. Unfortunately, most will refuse to discuss the transaction in these terms. Or, as soon as they do, they quickly switch to another tactic: "supply and demand." The key problem with this argument: The dealer--who has a credibility problem from the get-go--is asking you to take his word for it! This idea of "supply and demand" is seldom supported by real evidence, and in almost every case, it is possible to find what you want if you simply look around a bit. Of course, this requires patience. A lot of people buy a car without doing much research. Or, they do reserch to decide on the car, and then forget to shop around.
#281 of 3319 Problem by ffxvw Dec 07, 2000 (10:50 pm)
The main problem with this 5% over scenario you are outlining is that these fees, (e.g. Destination, Port Prep, etc.) are not arbitrary to us. When the dealer has to write a check to VW for a car, believe me, these fees are included. While it is an attractive scenario from the consumer standpoint, there are very few Passats that anyone would sell for this kind of figure, making this structure unrealistic. Jason
#282 of 3319 Passat "costs"--to clarify... by snurple Dec 07, 2000 (11:46 pm)
If the stories from this and other Passat BBs are any indication, then I think that we can say that *many* Passats have been sold for this kind of a fair price--which not only makes it it realistic, it makes it a reality. I don't think that the argument is that *all* of these fees are arbitrary. But the fact is that: 1) Some of them are. 2) It makes sense that all fees be pre-included within the "price," because to separate them out would be to put them on the same level as state tax and dmv fees. Destination costs and port prep fees are "dealer costs" associated with the dealer acquiring the vehicle to sell to the consumer--why shouldn't they impact the dealer's bottom line?
#283 of 3319 Snurple by vwguild Dec 08, 2000 (12:09 am)
Destination carries to both sides of the Invoice...shoot me an email, and I will fax you an invoice so that we are all on the same page... and looking at the same thing...
#284 of 3319 Destination... by snurple Dec 08, 2000 (12:52 am)
You mentioned something along these lines in a prior post. What do you mean "both sides of the invoice"? Fill us in...
#285 of 3319 Dest.... by vwguild Dec 08, 2000 (1:01 am)
Email me here...westervwmsn.com with a fax and when you get the invoice I will call you and we can talk it through...
#286 of 3319 Fees... by ffxvw Dec 08, 2000 (10:11 pm)
Believe me, every car dealer in the world wishes that all of the fees were included in the base invoice cost. I know that that would eliminate about 85% of the explanations I have to go through day after day. The car business is the only business I know of where all these things are seperate. Its not like the gallon of milk you buy at the grocery store doesn't include these things (shipping, advertisement, etc). Its just that the grocery store doesn't tell you. Jason
#287 of 3319 Got Milk? by snurple Dec 08, 2000 (11:27 pm)
Nor does the milk advisory board send the supermarket a check for every gallon jug they sell...which is what auto manufacturers do with the "holdback." There are differences. I think you may be one of the few dealers who wishes the process were "clearer." I always assumed that dealers loved the fact that they have a built-in, hidden profit margin (the holdback), and are able to charge all kinds of "official sounding" fees to pad out their profits even further. Someone tried to charge my friend a "security fee" when he was negotiating for a Honda Prelude, because "Honda's are often stolen." Think about that one. Who was the fee going to--the U.S. Department of Stolen Honda Recovery?!

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