Will VW Offer Generous Loyalty Rebates On New Cars?

[MrSprdSheet]

Note: 438k units in 2011 is the most VW has sold in the US in the 21st Century. They sold 407k in 2012, and under 400k in every other year this century.

VW could lose everybody, but that's not a betting man's number. Deduct the ones who don't return, the ones who wait until 2018, the ones they've already lost (perhaps the largest cut against the ~480k), and then we have a number I'd expect VW would be looking to layer above normal inventories. They don't have to hit it, but it would be pretty dumb to go into this "business as usual".

 

[MrSprdSheet]

MrSpreadsheet, the cost to VW per car, for each 1% over 85% that don't get remedied is roughly what VW is paying per car now.

...
On the other hand, if all the '09 and '10 owners kept theirs it would cost VW more. However, it makes more sense for older cars to be sold back, so it is unlikely that this would be the case.

Got it. I have a 2009, and am precisely where you point out. I hadn't thought about VW being better off if later model owners actually do hold out. So, for me that will be $ buyback, plus ~5k, plus the pony.

 

[MrSprdSheet]

It doesn't matter if it's this year, or next year, or the year after that, a year-end sale is going to be the best time to buy and no diesel customer-specific discount is ever going to be more than that discount.

While we've been chatting, it looks like lower sticker prices could be on offer:
http://www.stltoday.com/business/lo...cle_cb9903c1-62c3-5631-98c8-94c85fb7dadc.html

I once thought I did well, on a Volt. I knew MSRP of battery cars was going down, but not that GM would be giving $8,000 off, beneath those new prices. I admit I was wrong to think newer model owners would benefit from holding out, because it was just pointed out that VW would rather a 17k fine, than a 17k+ buyback. I still hold that things may get better, in ways that have less to do with timing and more to do with a desperate need for market share and lower stickers.

For VW's sake, that story bums me out. They've been on this de-content tack for a while, and now they're going to double down? I'm closer to the boat you are. No plans for VW, and two chargers already in the garage.

 

[STLTDI]

While we've been chatting, it looks like lower sticker prices could be on offer:
http://www.stltoday.com/business/lo...cle_cb9903c1-62c3-5631-98c8-94c85fb7dadc.html
I once thought I did well, on a Volt. I knew MSRP of battery cars was going down, but not that GM would be giving $8,000 off, beneath those new prices. I admit I was wrong to think newer model owners would benefit from holding out, because it was just pointed out that VW would rather a 17k fine, than a 17k+ buyback. I still hold that things may get better, in ways that have less to do with timing and more to do with a desperate need for market share and lower stickers.
For VW's sake, that story bums me out. They've been on this de-content tack for a while, and now they're going to double down? I'm closer to the boat you are. No plans for VW, and two chargers already in the garage.

Mass decontenting...weeeeeeeee!

 

[Hoffdad]

Talked with one of the main service guys at my dealership the other day and he said that he had heard that VWoA will be providing discounts of up to $8,000 depending on the new vehicle being purchased. Don't know how much truth is to it, but it sure would be nice if that was the case.

 

[fucanay]

If the discount is right, I'm in for a base model Alltrack when I get my check.

 

[TDIinMA]

If the discount is right, I'm in for a base model Alltrack when I get my check.

Yep, or a GTI SE.

 

[TDIinMA]

Talked with one of the main service guys at my dealership the other day and he said that he had heard that VWoA will be providing discounts of up to $8,000 depending on the new vehicle being purchased. Don't know how much truth is to it, but it sure would be nice if that was the case.

What would be really nice, is if they could find a way to make this a trade in. That would be worth a couple grand in sales tax in some cases.

 

[PC Passat]

If you signed your car over to the dealer for the buyback amount "it's true value at that moment", and VW Corp. gave the dealer the check and the dealer gave you a trade in credit of equal value it would be great. Everyone would have the same financial position as they will have under the current system
EXCEPT, you leave the government "sales taxes" out of the deal. They wrote the deal so their is no way that they would write themselves out and let this cash cow wander away. Remember one of the basic rules of government is to "never let a good crisis go to waste".

 

[rob c]

2016's in short supply

Please don't misconstrue what I'm saying. I agree there will be discounts. I just don't think they'll be as deep as some seem to think or hope for. And as for the selection, yes there will be 16s. Will there be the selection of 16s? Highly doubtful. I can tell you right now that there were over a dozen GTI PPs in the STL area two weeks ago, now there are 1 or 2. Golf Sportwagen SEL or SE with lightning package? No SELs, 1 or 2 SEs. That's before the buybacks even begin. Those are the only VW models I had interest in.

I have decided on leftover 2016S golf - don't have to wait for actual VW $ on buyback.. so have been monitoring inventory (autotrader, cars.com, etc) in the Northeast over the past month or so - can confirm above post that they are now in short supply - there are now only about 10-15 golf s models in New England.
I also agree with posters that a $ in the hand, so to speak.. that discounts on remaining 2016's will - just guessing here- be better than any proposed VW discount to keep us in the brand.

 

[CraziFuzzy]

Not generous enough...

 

[kevin_in_idaho]

It's great if you guys think the discounts are enough to get you to double down on VW but I'm of a different mindset and won't be getting another one. I've already purchased another vehicle and just waiting for the details on how to drop it off. I just hope my local dealer asks me why I'm turning it in (bad dealership, bad car, bad experience, etc.).

I still maintain that VW should have just swapped us into new cars (some minor amount) to keep their base, dealers happy, service people, etc. but instead made it easy to walk away; which I'm doing. If VW would have extended the warrantee to 150k (or something like that) bumper-to-bumper with the fix, I would have considered that too.

Also interesting to read about all the people who said they'd never turn their car in, now walking away and taking the cash.

I hope the people who do keep their cars don't expect to be bailed out if/when the "fix" doesn't work and they change their mind when some other big expense happens. Those items need to be hashed out.

I also feel for all the companies out there that are TDI specific. Their market is drying up quickly. For those of you keeping your cars, you can get parts cheap now though if you stock up with loyalty cards and used (pull off) parts!

 

[MaverickH1]

Personally, I've felt extremely disconnected from VW in this whole thing. It would have been nice to get video updates or something more personal than text on a document sent to my house.

It would have been awesome if they had offered any kind of light at the end of the tunnel. Literally ANY light.

I understand that this is a huge financial hit to them. And I further understand that they don't want any more financial hits. But I sat on the sidelines for a few months wondering what I was going to do, and at the time I still liked my VW. But after the first few months and not hearing anything but internet speculation... I started to turn bitter. And then I started looking at my car like something I might not keep. And then I didn't want to bother cleaning it anymore. And then I started skipping maintenance items. And then things started breaking that really shouldn't. And throughout this whole process there has never been a personal touch from VW.

I've been given the impression that their only interest was to satisfy the court, and they didn't really care about the customers.

To put it in perspective... I received more letters from VW dealerships about service specials in the 5 years I had the car than I received letters from VW about this issue. Seriously... it's just horrible customer service in my opinion.

They could have gone in so many creative directions.

 

[atomicfront]

If the discount is right, I'm in for a base model Alltrack when I get my check.

Yeah the Alltrack is nice. If they discount that enough I would certainly get one. Leaning towards another SportWagon if they don't.

I can see more SportWagon owners sticking with the brand just because there is nothing in ways of alternatives if you want to pay less than 35k.

 

[turboboost1]

I'm not interested in ANY VW cars after this fiasco. Already moved on. Now I'm just waiting for the buyback.

 

[GSwag]

Personally, I've felt extremely disconnected from VW in this whole thing. It would have been nice to get video updates or something more personal than text on a document sent to my house.

It would have been awesome if they had offered any kind of light at the end of the tunnel. Literally ANY light.

I understand that this is a huge financial hit to them. And I further understand that they don't want any more financial hits. But I sat on the sidelines for a few months wondering what I was going to do, and at the time I still liked my VW. But after the first few months and not hearing anything but internet speculation... I started to turn bitter. And then I started looking at my car like something I might not keep. And then I didn't want to bother cleaning it anymore. And then I started skipping maintenance items. And then things started breaking that really shouldn't. And throughout this whole process there has never been a personal touch from VW.

I've been given the impression that their only interest was to satisfy the court, and they didn't really care about the customers.

To put it in perspective... I received more letters from VW dealerships about service specials in the 5 years I had the car than I received letters from VW about this issue. Seriously... it's just horrible customer service in my opinion.

They could have gone in so many creative directions.

I agree 100%. It's almost as if Vw was kinda miffed at TDI owners or something. I feel like they have treated us like we are an annoyance to them and that they want rid of us problem customers as much as some want rid of VW. If they have had any intention of keeping customers, they sure haven't shown it.

 

[atomicfront]

I agree 100%. It's almost as if Vw was kinda miffed at TDI owners or something. I feel like they have treated us like we are an annoyance to them and that they want rid of us problem customers as much as some want rid of VW. If they have had any intention of keeping customers, they sure haven't shown it.

I don't think they were allowed to discuss the negotiations outside of the court hearings. They did give us two 500 dollar gift cards which were not required. We are being treated a lot better than the rest of the world. Look at how GMC and Toyota treated their owners when their vehicles were actually killing their owners. One owner was even convicted of murder charges due to his Toyota malfunctioning and Toyota hiding the problems of their cars and was serving jail time.

 

[k1xv]

My local dealer also sells Chevrolet. He will be disappointed to hear that I have no interest in any current VW offering. However, at some point, when available, I may have an interest in a diesel Cruze or Equinox. Or maybe a leased Volt or Bolt. I have almost $3000 in GM card credits to apply to a GM purchase or lease.

 

[JCTDI]

I was never able to get any hint of incentives from my rep.
He wanted me to come in and order a manual trans GSW, complete with a deposit, since he said they probably won't have any on the lot when I sold the JSW back.
Nothing pre-owned anywhere with MT.
So went to plan B, which is just get a used minivan/CUV to last 3 years until I can buy a Tesla.
Just found a Mazda yesterday and put a deposit on it today. Will pick it up this weekend.

 

[IcePick]

I would probably like an alltrack if it came with a significant discount.
But they are screwing up the timing, if the settlement had been approved I would have already put the money down on an Outback.

 

[Rico567]

I would probably like an alltrack if it came with a significant discount.
But they are screwing up the timing, if the settlement had been approved I would have already put the money down on an Outback.

Hi from across town, "IcePick." Maybe I'd be buying an Outback, too, but they're not screwing up "the" timing, they're screwing up "your" timing.

 

[Got Haggis?]

I went to a VW dealer today to test drive a 2017 Golf and 2017 GTI...they didn't have any Golfs at all, but I did manage to test drive the GTI and it was pretty great.

Anyway, the salesman told me that they had a meeting with their VW Ambassador last week (the person that will be handling the buy backs) and they were told that they are not allowed to offer any incentives at all to keep people with VW. Of course, take this with a grain of salt - but that is what the guy said. He said the terms of the settlement prevent it (I haven't read the entire thing, so I don't really know) - however if the customer brings it up like "what can you do to keep me with VW" then they might be able to offer something.

They have also been coached to try to get people to buy cars right away - since they are expecting people with a crapload of money in their hands after they turn in their cars (seems obvious of course)

 

[Rico567]

My local dealer also sells Chevrolet. He will be disappointed to hear that I have no interest in any current VW offering. However, at some point, when available, I may have an interest in a diesel Cruze or Equinox. Or maybe a leased Volt or Bolt. I have almost $3000 in GM card credits to apply to a GM purchase or lease.

Our erstwhile SAAB dealer, when we first bought from them, was also Olds - Chevy. How the mighty have shrunk! No more SAAB, no more Olds. And the dealer can't add any other GM marques because of franchise agreements with other area (Peoria, IL) dealers. One individual found it very peculiar that I just snorted when He asked if we would be interested in a Chevrolet when the SAAB wore out. Even if I hadn't driven any otherwise, they've given me an Equinox for a loaner twice, and....that did it.

 

[rob c]

Reasonable to guess that additional VW incentives will be shortly after Judge Breyer'

That's exactly what it is, but my point in bringing it up is that if someone wants generous savings they have to buy during this year end sale or next year's. Any dieselgate related incentives, assuming there will even be any, will be paltry in comparison.

So, I just inked a deal (pending Judge Breyer's official signoff on Tuesday) for one of the few remaining 2016 Golf S (plain jane suits me fine)...
Sticker was $22,365 / Negotiated - without much work - down to $16,865.
Am told by the dealer (so of course, it's just speculation), that they expect VW to notify them of additional incentives to "affected TDI owners" within hours of the official decision - also amount to be no more than $1000 on top of whatever deal the dealer makes to keep one in the brand.

So I think I agree that the large discounts now being seen reflect dealers purging their inventories of leftover 2016's, and frankly, would not expect that if I had not pulled the trigger, that VW would be offering several $1000's or more. Time will tell.

 

[fucanay]

Yeah the Alltrack is nice. If they discount that enough I would certainly get one. Leaning towards another SportWagon if they don't.
I can see more SportWagon owners sticking with the brand just because there is nothing in ways of alternatives if you want to pay less than 35k.

That's kind of where I am, but the regular Sportwagen doesn't have the DSG transmission and I don't know that I can do the regular automatic. I test drove one and acceleration wasn't great, slow shift between 1st and 2nd. The turbo boost gets killed there where it shouldn't drop off with the DSG.