VW has done this to ensure consistent and transparent pricing for all customers, this fosters a fair and straightforward car-buying experience for everybody regardless of where you buy your vehicle. I think you'll see a lot of dealerships switching to this model for other brands, too. Here in the dealerships, our focus remains on providing you with the best service and value. Thanks for your input.
Of course, why should there be a benefit for the customer? It's plain window dressing. "Let's change our strategy so we make less profit and the customer benefits more", yeah right...no big company has any interest in doing that. And it's understandable from a business point of view, they always need to grow...but we shouldn't fool ourselves. VW is imploringly looking for pseudo benefits they can sell to the customer. What the customer wants is a good price combined with a good service, nothing else. In theory the prices should even go down since the middleman is now bypassed, but I highly doubt that'll happen. By the way, this "negative comment" has nothing to do with your channel, Chris, I actually appreciate the video, thanks!
@@xnaper Ditto like the Channel even though I don’t have a California just a converted T5, but I know if I go in to a dealer just before Christmas or the end of the month/quarter I’m going to be able to negotiate a good deal as the dealer will be keen to meet months/quarters end targets. I’ve been that salesman !
Less Competition between dealers on price WILL result in higher prices no matter how it’s dressed. Youre telling me that customers prefer having the same price nationally than negotiating for a lower price with other dealers? 🐂 💩 VW propaganda.
I hear what you’re saying but you haven’t really explained WHY they are changing the model. I’m sure the official slant is price but I imagine someone somewhere has worked out it’s better for VW in some way, or as in every corporate environment it’s someone somewhere after a promotion or new in post looking to revolutionise something to the benefit of nobody.
So if you have any complaints, about battery degradation, with time and use cycles and range being no where near that advertised, when driving in real life, you should direct those to VW now should you ?
Honest Question, if prices are the same everywhere. What’s stopping a customer getting all the info from you and then just ordering online, since no deal from dealer. You wasted all your time and you get no fee.
There's nothing stopping you. But there's literally no reason for you to do that either, especially if you already have a good relationship with the people at the dealership who helped you out. The price would be the same either way.
The dealers were able to negotiate discounts with customers, presumably because they bought them in bulk at a lower price from VW. By selling direct to the consumer, VW can fix this at a non-negotiable set price. Will it be lower than before? I very much doubt it! Bad luck good negotiators!
Its one of the early stages of a multiphased strategy. Some of the conclusions of which are that you will only legally be allowed to drive EVs on European roads and that you will no longer be able to purchase vehicles, only rent them. European insurers are being primmed for this already, sadly digitized vehicles are the only way forward for our digital ID (no pun intended) obsessed. Orwellean rulers.
Just EV,s so copying Tesla and more importantly removing the requirement for dealers to fund vehicles they cant easily sell. In the long run I dont see this will benefit dealers or consumers. What does the dealer get out of this ?
Nice site Chris and very informative, love watching posts. We are very interested in a California Ocean. At the moment we have a T6 campervan that I am thinking of updating to an Ocean. Can you let me know what you have in stock for sale at the moment at any of your sites.
I can't see how VW will want to get bogged down in negotiating trade-in values, as they won't understand the used market as well as a dealer. Inevitably this will surely impact negatively on the customer.
Thanks Chris, I think I get it now however this model might entice a dealer to offer an inflated trade-in to secure the deal. VW must have some control over the trade-in to discourage this, surely. I really don’t envy you, as you venture into this very different world, I fear you may be squeezed out.
Shame and I will imagine this will stop customers getting a better price through sites like drive the deal, or local dealers matching DTD quotes. Personally when I purchased my new 2021 Ocean I managed to get about 6k off using DTD as a bargaining tool, had I not then I doubt I would have have bought new. As others have said not moaning at you Chris, just VW trying to make more money and spin it as a benefit to customers….which is simply not the case…..unless VW drop the profit margin inline DTD quotes which I can’t see happening, it will be RRP or no sale!
Ha..! What could possibly go wrong..? Weeeell.... Means the electric rubbish is now left on a massive airfield rather than dealers going out of business trying to sell them at massive discounts..
Previously, there was a profit margin (which could be haggled at the dealership / by shopping around). With agency, customers get a transparent price and the dealer gets a handling fee.
Instead of a profit margin, the dealer now gets a handling fee. While the handling fee per order is usually a fair bit lower than the original profit margin, it can't be reduced via haggling etc.
As a customer I want to be able to shop around for the best deal.
Tuff
Personally I don’t see how price fixing benefits the customer, it seems to benefit VW more.
VW has done this to ensure consistent and transparent pricing for all customers, this fosters a fair and straightforward car-buying experience for everybody regardless of where you buy your vehicle. I think you'll see a lot of dealerships switching to this model for other brands, too. Here in the dealerships, our focus remains on providing you with the best service and value. Thanks for your input.
Of course, why should there be a benefit for the customer? It's plain window dressing. "Let's change our strategy so we make less profit and the customer benefits more", yeah right...no big company has any interest in doing that. And it's understandable from a business point of view, they always need to grow...but we shouldn't fool ourselves. VW is imploringly looking for pseudo benefits they can sell to the customer. What the customer wants is a good price combined with a good service, nothing else. In theory the prices should even go down since the middleman is now bypassed, but I highly doubt that'll happen. By the way, this "negative comment" has nothing to do with your channel, Chris, I actually appreciate the video, thanks!
@@xnaper Ditto like the Channel even though I don’t have a California just a converted T5, but I know if I go in to a dealer just before Christmas or the end of the month/quarter I’m going to be able to negotiate a good deal as the dealer will be keen to meet months/quarters end targets. I’ve been that salesman !
Less Competition between dealers on price WILL result in higher prices no matter how it’s dressed. Youre telling me that customers prefer having the same price nationally than negotiating for a lower price with other dealers? 🐂 💩 VW propaganda.
So much for us getting the best deal, sounds like VW putting restrictions on dealers offering a best price. VW make the money and more.
I hear what you’re saying but you haven’t really explained WHY they are changing the model.
I’m sure the official slant is price but I imagine someone somewhere has worked out it’s better for VW in some way, or as in every corporate environment it’s someone somewhere after a promotion or new in post looking to revolutionise something to the benefit of nobody.
So if you have any complaints, about battery degradation, with time and use cycles and range being no where near that advertised, when driving in real life, you should direct those to VW now should you ?
Honest Question, if prices are the same everywhere. What’s stopping a customer getting all the info from you and then just ordering online, since no deal from dealer. You wasted all your time and you get no fee.
There's nothing stopping you. But there's literally no reason for you to do that either, especially if you already have a good relationship with the people at the dealership who helped you out. The price would be the same either way.
Im in the bicycle industry, loads of shops are destocking. This could reverse this.
The dealers were able to negotiate discounts with customers, presumably because they bought them in bulk at a lower price from VW. By selling direct to the consumer, VW can fix this at a non-negotiable set price. Will it be lower than before? I very much doubt it! Bad luck good negotiators!
Manufactures have always wanted to do this price fixing, And it’s never worked yet…Good luck VW
There a lot of brands already on agency model or moving to it this year.
I bet they are.
Price fixing? I thought that was illegal.
Its one of the early stages of a multiphased strategy. Some of the conclusions of which are that you will only legally be allowed to drive EVs on European roads and that you will no longer be able to purchase vehicles, only rent them. European insurers are being primmed for this already, sadly digitized vehicles are the only way forward for our digital ID (no pun intended) obsessed. Orwellean rulers.
I’d go for a California but the young sales lad said you don’t accept PX.
Just EV,s so copying Tesla and more importantly removing the requirement for dealers to fund vehicles they cant easily sell. In the long run I dont see this will benefit dealers or consumers. What does the dealer get out of this ?
Nice site Chris and very informative, love watching posts. We are very interested in a California Ocean. At the moment we have a T6 campervan that I am thinking of updating to an Ocean. Can you let me know what you have in stock for sale at the moment at any of your sites.
Hi, if you give us a call at Volkswagen Van Centre Wrexham we'll be able to help you out with an update on our on-site stock. 01978 503 538. Thanks!
I can't see how VW will want to get bogged down in negotiating trade-in values, as they won't understand the used market as well as a dealer. Inevitably this will surely impact negatively on the customer.
The dealer will be handling trade ins, then they will send any money to VW (or to the customer).
Thanks Chris, I think I get it now however this model might entice a dealer to offer an inflated trade-in to secure the deal.
VW must have some control over the trade-in to discourage this, surely.
I really don’t envy you, as you venture into this very different world, I fear you may be squeezed out.
Shame and I will imagine this will stop customers getting a better price through sites like drive the deal, or local dealers matching DTD quotes. Personally when I purchased my new 2021 Ocean I managed to get about 6k off using DTD as a bargaining tool, had I not then I doubt I would have have bought new.
As others have said not moaning at you Chris, just VW trying to make more money and spin it as a benefit to customers….which is simply not the case…..unless VW drop the profit margin inline DTD quotes which I can’t see happening, it will be RRP or no sale!
Ha..! What could possibly go wrong..? Weeeell.... Means the electric rubbish is now left on a massive airfield rather than dealers going out of business trying to sell them at massive discounts..
It’s not rubbish.
At last you’ve caught on, all car new dealers should be out of business, so you have at last caught up with Tesla
does this involve californias?
Only the electric passenger models at the moment, ID3, ID4, ID5, ID7 and ID Buzz (not Cargo).
so instead of paying money for a VW what changed? because thats te only way buying can change
Who you pay has changed. VW instead of the dealership.
Sounds like the demise of dealerships eventually
I'm not sure. The dealers still earn a fee per order, it just replaces the profit margin previously.
Nobody is buying electric and it’s a waste of time for dealers
How does the dealer make any money.
Previously, there was a profit margin (which could be haggled at the dealership / by shopping around). With agency, customers get a transparent price and the dealer gets a handling fee.
unless VW buy the dealers, i am not sure how they are going to survive (other than by pushing ICE vehicles). unless thats the point.
Instead of a profit margin, the dealer now gets a handling fee. While the handling fee per order is usually a fair bit lower than the original profit margin, it can't be reduced via haggling etc.