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VW gets hammered...
Posted by chris74 [Email] (more from chris74) on Thu, 3 Apr 2003 07:14:01
In Reply to: VW On Incentives -- Sour Grapes?, Ian Glenday [Profile/Gallery]
, Wed, 2 Apr 2003 22:54:54
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because there is so little profit margin on their cars.
For example, a New Beetle, with a sticker of around 17,200 (GL automatic) has a dealer invoice of 16,800. They have no play. Hell, for what its worth, they could be dumping cars here. (remember the Toyota Vans??) Realistically, all of their models could get anywhere from 2-3 thousand added on to give them higher margins. then they could offer rebates. Sure, the dealer gets a kickback from VW, but 400 dollars profit form sticker is assinine. Its a losing proposition, unless a dealer can do volume.
APR deals is the only for VW to get buyers in with offers.
Fortunately, VW seems to lease a lot of cars, so the dealer profit in that is slightly higher.
posted by 68.39.12...
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