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Volkswagen Passat Prices Paid and Buying Experience

3318 messages,  Last post on Nov 12, 2009 at 9:57 AM

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

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#86 of 3318 additional fees on the invoice by sk00 Aug 31, 2000 (5:34 pm)
Hi, I have question on the invoice price for a passat wagon glx 2000. I was at a vw dealer last weekend, they asked me 3% over invoice. And they showed me their invoice. Their invoice is slightly higher than the invoice published in the internet. They add about $167 for port fee and floor plan fee. Also, they have $59 documentation fee and $25 registration prep. fee which will be added on the P&S agreement. Are these additional fees legitimate? Or Should I consider this as an additional dealer's profit? What I want is to give the dealer about $300 (max $500) pure profit. Is this reasonable??
#87 of 3318 Fees by kcram HOST Aug 31, 2000 (10:01 pm)
Hi sk00 The port, documentaion, and registration prep fees are indeed legit. The floor plan fee is an itemization of something that is part of every car, hence it looks and sounds strange. As for your term "pure profit", you need to decide when that value is determined. Is that profit over your invoice figure (gross revenue), is it profit after expenses and commission to the sales rep (true net profit), or somewhere in between? The Passat wagon is one of the top vehicles VW sells, and they certainly will not settle for the same revenue on a Passat GLX wagon deal as they would get for a stripped Golf. For a vehicle with an invoice of $27,500+, $300 is a very small offer. At 3%, they're asking for about $850 - try offering $700 and you'll probably get a deal done. kcram Co-Host - Smart Shopper & FWI Conferences edmunds.com Town Hall
#88 of 3318 Dealer invoice???? by georgek44 Sep 01, 2000 (4:53 pm)
I accidentally posted this under "Station Wagons", it was meant to be posted here... The above 8/31 posts raise an interesting question. In late July I bought a 2000 Passat GLS wagon; 1.8T, AT, lux pkg, Monsoon upgrade, and dealer installed rubber mats, 6 CD changer and dog net cargo partition. The negotiated price works out to $232 over "dealer invoice". I could have ordered an '01 for $600 or $700 over "invoice" but needed the car more or less immediately. I am happy with the car thus far (except for a jammed sunroof, repaired under the warranty), and believe that I paid a fair price considering that they had to transfer the car from another dealer about 120 miles away. On the other hand, I can't really believe that "dealer invoice" is anything other than a marketing ploy, a fictitious number. If we take the alleged dealer cost (invoice minus HB and incentives) for any car, as provided by Edmunds and others, how can a dealer possibly make any profit by selling cars anywhere near that price? In my case, $232 is less than 1% over "invoice". My checking account earns more than that. How can dealers possibly pay salaries, commissions, interest on inventory, rent/mortgage, utilities, insurance and other overhead, and stay in business? It's simple - they can't, ergo "dealer invoice" cannot possibly be what they actually pay for a car. A friend who was in the car business many years ago says that the actual cost to produce a car typically is one third of "sticker price", and that dealers actually pay the manufacturer or importer (net after all accounting trickery) about two thirds of "sticker". This leaves a third for the dealer's expenses and profit. This scenario strikes me as much more believable, however comforting it might be for me to think that I bought a car for $232 more than the dealer paid for it. Anyone have any knowledge or comments that might shed light on this?
#89 of 3318 Vehicle Appearance Protection Program by heron9 Sep 04, 2000 (12:36 am)
I am in Virginia and I am closing on a deal for a 2001 Passat, 4 cylinder, 1.8, with automatic transmission and luxury pkg. It's silver with black cloth interior. I was given an "out the door" total of $24,303." Then I was given an enthusiastic "talk" about the environmental hazards of my community, such as "ultra-violet rays from the sun, acid rain, bird droppings..."--no kidding!! I was lectured on the benefits of their interior and exterior protection pkg. and given the price of $800. When I declined, I was then offered $399. As I had been in the talking/negotiating process for 2 hours plus at this point, I regretfully caved in. Now, a day later, I feel like an idiot! I would imagine that a quality manufacturer like VW produces vehicles with environmentally safe paint, etc. I suspect that this in just another way that dealers can recoup profit from unwary customers who are motivated to "protect their investment" (an oft repeated reference during my little speil). Anyway, has anyone out there ever heard of this "protection", and does anyone recommend it? I have a call in to my salesman to hopefully cancel it. Also, any comments on my negotiated price? All feedback welcome. I'm new to the price haggling business, and I found Edmunds' information incredibly helpful.
#90 of 3318 georgek by im_brentwood Sep 04, 2000 (12:49 am)
Actually, As a rule, there is no 1/3 markup in a car. Not in any new car anyways. Dealers make actual profit off of used cars, parts and service. Even if you count holdback (Which is not really profit) If a dealer sells a new car at 1-3% Over invoice, then they are generally making a gross profit and a net loss. There are very few makes where dealers actually "net" money from new car sales. Generally, the highline imports. Bill
#91 of 3318 Right Price for 2001 Passat gls?? by nasrene Sep 04, 2000 (3:21 am)
Can anyone help me out and tell me what they think of this offer? I ordered a 2001 VW Passat GLS(fully loaded with everything except CD)I had to order because the dealer did not have the right color combo. I basically knew what I wanted, they didn't need to "sell" it to me and they placed the order. I offered $500 over invoice and let them know I new about the holdback they would be receiving so I figured with the holdback and $500 over invoice they would be making a good profit and do little work for a car that wasn't taking up space on their lot and I would receive in 2-3 weeks. They told me $1100 off MSRP was their final and basically only offer. What would you do? The MSRP was $29 025 and they said $27 925 was the best deal. Also, I originally started looking for the 2001 glx but one is nowhere to be found in Seattle that is black with beige interior... Please help...
#92 of 3318 Right Price by ffxvw Sep 04, 2000 (2:02 pm)
It tell you, it depends on the market you're in. A Passat GLS V6 automatic with leather + luxury costs us around $26,900 to get, not including holdback. Now, an offer on an order of a thousand over is ordinarily a sure deal, with most salespeople's eyes lighting up at the thought. Its not that its a big profit, or that the salesperson will make a lot of money, its just something he knows his boss will probably accept. Maybe most dealers would accept 500 over. But I'm sure some wouldn't even bother, since its an order situation. While you're researching this price, beware of 'lowballs', prices that seem extraordinarily low. These prices have 2 goals. 1, to take you out of the market, and 2, to get the dealer the car! Believe me, if the dealer that lowballs someone gets a better offer, you might never see that car at all! However, your commitment has allowed them to order it, bypassing their factory allocation limits. It sounds like your dealer made an honest offer, they just want to make some money. Jason
#93 of 3318 Passat Pricing..GLX4Motion. by sandiegomark Sep 04, 2000 (2:58 pm)
I went to www.costco.com and entered the info that I wanted a 2001 Passat. In 30 seconds I got a screen showing which dealer in San Diego would help me. I called on of the contacts listed...was at the dealership in an hour (because they had the EXACT CAR I wanted) (although I acted only slightly interested on the phone). I was assigned to a salesperson..test drove it..and left $1,000 dep on it and took home a credit app. The next morning I faxed in the credit app and about 3 hrs later came to the dealership with a cashier's check. I was in and out in 45 minutes!! They gave me $900 over the sticker and gave me $50 off at the accessories shop (bought the in dash single CD) and they sold that to me at a heavy discount. I got the 2001 GLX 4-Motion....paid 30,075...hope this helps...they don't have a lot of margin in their pricing like other car makers..but check out www.costco.com (you might need to be a member of costco (the warehouse store chain) but I don't remember needing to produce my member number or my Costco card at anytime either on-line or at the dealership. Mark
#94 of 3318 Correction to last post by sandiegomark Sep 04, 2000 (3:06 pm)
I paid $900 over "invoice" per Edmunds including destination.....not 900 over STICKER....ooops! Mark
#95 of 3318 Protection Package by Car_man HOST Sep 04, 2000 (3:09 pm)
Heron9, in my opinion interior and exterior protection for new vehicles is not much more than a way for dealerships to add additional profit to your deal. You can easily apply scotch guard to the interior of your car on your own for a fraction of the cost that a dealership would charge you and the exterior protection doesn't seem to add much to actually protect cars from my experience. If I was in your situation I personally would cancel the protection package prior to taking delivery of the car if at all possible. Car_Man Smart Shoppers / FWI Co-Host

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