Quote:
Originally Posted by I-Hate-Hulse
Here's the real reason for those strong sales in Canada for VW:
As of Oct. 1, VW Canada’s choice of incentives include finance interest rates as low as zero per cent for up to 84 months, depending on the model.
Alternatively, customers can opt for lease rates as low as 0.9 per cent for up to 48 months, depending on the model, or up to $6,000 cash back.
On top of those options, VW is offering up to an additional $1,500 in bonus cash.
Cash incentives are like a defibrillator jolt to even the most moribund of sales levels.
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Nope, almost all of these incentives were in place before the scandal broke. The only incentive that has changed is current diesel owners, or clients that had diesels on order, are getting the $1500. Everything else has stayed the same. In fact at first we were kinda disappointed that all that was offered was the $1500 bonus to diesel owners.
What is kinda hilarious is some people coming into our dealership, "Oh, it must be so tough right now... give me 50% off of a car and I'll help you out."
The reality. We had to write off 1 week of business in September, that's it. We had a banner October, and in fact had one of our single best weekends in the 12 years I've been at the store. 45 cars. Some people are coming in thinking that there is going to be these crazy deals, look at the product, love it, and buy it. We have had 0% for 84 mths on most models since May/June. Long before the scandal. $6000 cash is on Touareg and I believe CC, which is pretty much the standard rebate they put up every year on them since I can remember, to clear out the remaining previous year models.
It has been business as usual on the gas inventory, and for the city dealers like us, we are doing just fine. We have had worse Octobers when we could sell diesel models. However, the dealers that are getting hurt are small rural dealers which are 50%+ diesel sales.
If GM and Toyota can survive their "We hid stuff we knew was setting cars on fire and sending them careening over cliffs." scandals, I wasn't worried VW would survive this. Still doesn't make what they did right, but it isn't the worst thing a car manufacturer has done.