Price Point Punch or Fuzzy Math?

[CMB430]

Hey Guys,

I wanted to post something I found out tonight. Perhaps this is well known or has been explored before, but none the less I felt compelled to share. Tonight I stopped by my local VW dealer to settle my mental battle once and for all. I have been arguing with myself over whether to get a 2011 2-door Golf TDI or a 2011 Sportwagen. Either choice would be a 6M, cold weather package, protection package (mats, trunk mat with blocks, mud flaps) and on the Sportwagen rear air bags. Both would be silver. No other options.

The out the door price for both vehicles was only $120 apart! About $25,075 for the Sportwagen and about $25,150 for the Golf. I do not understand how that is. The only option the Golf has that the Sportwagen does not is the 17" rims (don't want them anyway) and fog lights. The Sportwagen has much more metal, glass and moving pieces (rear doors with windows, more interior and such) plus it has V-Tex and not cloth. How could the two cars cost the same amount?

Needless to say I have decided that it will be a Sportwagen for me because if I am going to drop another $25,000 on a brand new car, I am going to get the one with more room in it. I was just a little shocked at how the numbers played out. I was looking for the Golf to be a few grand less. That does not seem to be the case.

Anyway, not a bit** session or anything, just something that surprised me. What say you?

 

[PlaneJob]

The Lotus Elise is made from cheap fiberglass and uses a repurposed Toyota Celica engine... it does not come in anywhere near cheap.

I think you pay for the sportiness of the golf by way of a higher MSRP.

 

[glennco]

You also have to pay a bit more due to manufacture location.

Golf- Gemany
JSW- Mexico

 

[motoblue]

Aside from having the same engine, they are very different vehicles. I've owned both a Jetta (sedan) and now a Golf and I never got used to the extra length on the Jetta. That and how much quicker the Golf feels due to the suspension and larger wheels, I have zero regrets. Anyway, assumably you test drove both, and have no preference that way?

You were right to expect the Golf, especially a 2-door, to be less expensive than the sportwagen. The MSRP price difference is $2000 more for the sportwagen, so your dealer was willing to discount the sportwagen over $2000 more than the Golf. That's been the typical reality between the two models since both became available. Dealers have been less willing to discount the Golf because their margins on the Golf are much narrower. Usually they justify it to buyers as the lack of Golf availability, real or perceived.

Even so, that discount disparity is pretty huge considering the Golf's been out for a year and a half already. You might want to price shop at another dealer to make sure you are getting a realistic picture of Golf availability in your area. But if you're settled on buying from that dealer, based strictly on MSRP, the sportwagen's a way better deal.

 

[Joe_Meehan]

Grasshopper, do not worry over that which you have no control.

Don't try to figure out dealer pricing. You are trying to make logical that which is illogical. The selling price of cars is dependent on what you will pay and what the dealer believes will give him the most profit. All the factors going into the dealer cost are well hidden from your sight and will not be fully reviled to you.

Compare what is meaningful. What car do you like and is the price offered the best you can get.

I have a neighbor who professionally bargains for car buyers. I believe he used to be in the business. That might be a good idea to consider, if you can find someone in your area.