New Car Deals

[lazypucker]

Originally Posted by Blankcanvas

I 'factory ordered' a new VW January 2022. The car arrived this week but it's now a 2023 model year with $5,000 higher retail price and lease rate has jumped from 1.49% to 9.19%. Dealer would not budge on price or interest rate AND added $3,000 'mandatory' extras that I didn't want and specifically negotiated out of in the original agreement. All in all, the monthly lease payment almost doubled.

I walked away an 'unhappy' customer and got my $1,000 deposit back.

May I ask what model of VW did you order that took like almost 2 years to deliver?

Eventhough it is scummy for the dealer to quote a different model year and add features to bump up the price, I understand that financing is usually negotiated upon delivery, not when you put in the order, at least that's when I ordered my car that took 4 months to arrive (but that was in 2019)...

[bizaro86]

Originally Posted by lazypucker

May I ask what model of VW did you order that took like almost 2 years to deliver?

Eventhough it is scummy for the dealer to quote a different model year and add features to bump up the price, I understand that financing is usually negotiated upon delivery, not when you put in the order, at least that's when I ordered my car that took 4 months to arrive (but that was in 2019)...

It seems to me that there was probably a buy-down by someone in the process when he did original transaction that he isn't getting now.

In January 2022 the 5 year Canada bond rate was roughly 1.4%-1.6%. So his lease rate was less than a 1% premium over the government's cost of funds - someone in the process was buying down that rate to get him the money that cheap.

Now the Government 5 year rate is slightly under 4%, so a 5%+ premium. That's probably a retail rate with no buy down at all.

So in an opaque way he is very much not getting what he originally bargained for.

[Blankcanvas]

Originally Posted by lazypucker

May I ask what model of VW did you order that took like almost 2 years to deliver?

Eventhough it is scummy for the dealer to quote a different model year and add features to bump up the price, I understand that financing is usually negotiated upon delivery, not when you put in the order, at least that's when I ordered my car that took 4 months to arrive (but that was in 2019)...

It was a Golf R.

[monkeyman]

Originally Posted by Blankcanvas

I 'factory ordered' a new VW January 2022. The car arrived this week but it's now a 2023 model year with $5,000 higher retail price and lease rate has jumped from 1.49% to 9.19%. Dealer would not budge on price or interest rate AND added $3,000 'mandatory' extras that I didn't want and specifically negotiated out of in the original agreement. All in all, the monthly lease payment almost doubled.

I walked away an 'unhappy' customer and got my $1,000 deposit back.

That sucks. I can't believe how egregious it's gotten. slimy bastards.
I would've walked away too.

[chemgear]

Yeah, #### that ####.

[soreshins]

Originally Posted by IGGYRULES

You owe BlindMilwaukee a case or two or twenty of beer.

In the spirit of paying it forward, I might not have contacted Hyundai without reading these posts, and can’t send beer, so i’ve just donated $200 to the alberta children’s hospital in BlindMilwaukee, Powderjunkie and Cecil’s honour.

[Hemi-Cuda]

Originally Posted by monkeyman

That sucks. I can't believe how egregious it's gotten. slimy bastards.
I would've walked away too.

Slimy yes, but what else can you expect in the current market? The dealership knows if he walks away that they can easily sell that car on the lot for that price or more, zero incentive for them to offer any kind of deal

[Sliver]

Could they have even held that interest rate if they wanted to?

Blankcanvas: have you checked out the Audi S3? Essentially the same car, but I don't think they're as susceptible to dealer mark ups and there does seem to be inventory in Calgary. No hatch and no drift mode, so potential deal breakers there; however, the interior is way WAY nicer, so a potential win. No cooled seats, though, which is total weak sauce considering the R can be optioned with them.

[you&me]

Originally Posted by Sliver

Could they have even held that interest rate if they wanted to?

Blankcanvas: have you checked out the Audi S3? Essentially the same car, but I don't think they're as susceptible to dealer mark ups and there does seem to be inventory in Calgary. No hatch and no drift mode, so potential deal breakers there; however, the interior is way WAY nicer, so a potential win. No cooled seats, though, which is total weak sauce considering the R can be optioned with them.

No, the dealer couldn't have held the rate as it's not up to them... I mean, technically they could have subsidized it, but at ~8% per year on a ~$50k car, it would get mighty expensive, and as mentioned, they would have zero incentive to do so.

It's a really ####ty situation ordering cars right now. Lots of unresolved chip issues means lots of randomly available options, frustratingly regardless of the order submitted; lots of delays and crazy, runaway interest rates.

[Table 5]

The increased retail price because of the newer model year, and the higher interest rate wouldn't be my issue. Frustrating, but I get it. The extra 3K of options, that you especially said you didn't want, is what would've killed it for me.

Which dealer was this? Hopefully not pylon's!

[calgarygeologist]

If the car buying situation wasn't bad enough already with inventory issues and high prices the autoworker strike that started today will not help. I've been thinking about a purchase for next summer-ish but unless things significantly improve I'll stay on the sideline.

[monkeyman]

Originally Posted by Hemi-Cuda

Slimy yes, but what else can you expect in the current market? The dealership knows if he walks away that they can easily sell that car on the lot for that price or more, zero incentive for them to offer any kind of deal

I’d hope after holding the guys $1000 for two years, they’d at least honour the part of the agreement they can control. I mean, they know how much more the car is from model he ordered, and they know how much more he’d have to pay in interest, but no, they decided to tack on an extra $3000 of extras.

[bizaro86]

Originally Posted by you&me

No, the dealer couldn't have held the rate as it's not up to them... I mean, technically they could have subsidized it, but at ~8% per year on a ~$50k car, it would get mighty expensive, and as mentioned, they would have zero incentive to do so.

It's a really ####ty situation ordering cars right now. Lots of unresolved chip issues means lots of randomly available options, frustratingly regardless of the order submitted; lots of delays and crazy, runaway interest rates.

There was pretty clearly a buy down on the original deal though.

So while I agree it's probably not fair to expect the dealer to eat 2 years of interest rate hike, if they were buying down by 2% before buying down the same 2% now seems fair.

That, combined with the $3k of extra mandatory options suggests this isn't someone working in good faith trying to make it fair, it's someone trying to get out of the deal so they can sell the car for more.

[you&me]

Originally Posted by bizaro86

There was pretty clearly a buy down on the original deal though.

So while I agree it's probably not fair to expect the dealer to eat 2 years of interest rate hike, if they were buying down by 2% before buying down the same 2% now seems fair.

That, combined with the $3k of extra mandatory options suggests this isn't someone working in good faith trying to make it fair, it's someone trying to get out of the deal so they can sell the car for more.

To be clear, it's exceedingly rare for a dealer to buy down rates, especially on a single deal.

If you're seeing a rate at something like .9 or 1.9%, it's almost always a promo from the manufacturer... You'll notice when these deals are advertised, it's almost always in conjunction with an either/or offer of a discount, i.e. "1.9% financing, or $3,000 cash back". Occasionally, a large dealer or dealer group will make a bulk purchase from the manufacturer on the basis of being able to offer a promo finance deal (still at the expense of the manufacturer), so they can have something like a "Shaw GMC blowout on Sierras".


Regarding the $3k in "mandatory extras", it depends what those were... If we're talking stuff like crappy 3M and winter weather mats, then yes, that's on the dealer. However, if we're talking a repackaging of options to include things like heated seats, when the OP didn't want them, that's really ####ty, but also really common these days.

[Erick Estrada]

Originally Posted by Blankcanvas

It was a Golf R.

Northland VW?

[bizaro86]

Originally Posted by you&me

To be clear, it's exceedingly rare for a dealer to buy down rates, especially on a single deal.

If you're seeing a rate at something like .9 or 1.9%, it's almost always a promo from the manufacturer... You'll notice when these deals are advertised, it's almost always in conjunction with an either/or offer of a discount, i.e. "1.9% financing, or $3,000 cash back". Occasionally, a large dealer or dealer group will make a bulk purchase from the manufacturer on the basis of being able to offer a promo finance deal (still at the expense of the manufacturer), so they can have something like a "Shaw GMC blowout on Sierras".


Regarding the $3k in "mandatory extras", it depends what those were... If we're talking stuff like crappy 3M and winter weather mats, then yes, that's on the dealer. However, if we're talking a repackaging of options to include things like heated seats, when the OP didn't want them, that's really ####ty, but also really common these days.

Fair enough, and I have no idea who bought down the rate originally (manufacturer or dealer). But someone was putting money into getting him 1.9% originally and he isn't getting that money now that it's time for delivery, which seems ethically flexible to me.

[RichieRich]

Originally Posted by Blankcanvas

I 'factory ordered' a new VW January 2022. The car arrived this week but it's now a 2023 model year with $5,000 higher retail price and lease rate has jumped from 1.49% to 9.19%. Dealer would not budge on price or interest rate AND added $3,000 'mandatory' extras that I didn't want and specifically negotiated out of in the original agreement. All in all, the monthly lease payment almost doubled.

I walked away an 'unhappy' customer and got my $1,000 deposit back.

Very legit gear grinder. At least you got deposit returned however I’m guessing that even took some drama?

Is it even possible to protect oneself from something like this?

[driveway]

Cars are the worst product category ever for data privacy.

Car brands quietly entered the data business by turning their vehicles into powerful data-gobbling machines. Machines that, because of all those brag-worthy bells and whistles, have an unmatched power to watch, listen, and collect information about what you do and where you go in your car.

All 25 car brands we researched earned our *Privacy Not Included warning label -- making cars the official worst category of products for privacy that we have ever reviewed.

Every car brand we looked at collects more personal data than necessary and uses that information for a reason other than to operate your vehicle and manage their relationship with you.

They can collect super intimate information about you -- from your medical information, your genetic information, to your “sex life” (seriously), to how fast you drive, where you drive, and what songs you play in your car -- in huge quantities. They then use it to invent more data about you through “inferences” about things like your intelligence, abilities, and interests.

Most (84%) of the car brands we researched say they can share your personal data -- with service providers, data brokers, and other businesses we know little or nothing about. Worse, nineteen (76%) say they can sell your personal data.

Only two car brands, Renault and Dacia (which are owned by the same parent company) say that all drivers have the right to have their personal data deleted.

We couldn’t find confirmation that any of the brands meet our Minimum Security Standards. Our main concern is that we can’t tell whether any of the cars encrypt all of the personal information that sits on the car.

Maybe good that you didn't get that new Golf R.

[Derek Sutton]

Originally Posted by RichieRich

Very legit gear grinder. At least you got deposit returned however I’m guessing that even took some drama?

Is it even possible to protect oneself from something like this?

The decision not to purchase and return of the deposit is ones “protection”. The biggest issue is the dealer forcing the $3000 in add one which is total crap. As mentioned above, year over year price increase and rates are out of the dealers control.

[Blankcanvas]

Originally Posted by Table 5

The increased retail price because of the newer model year, and the higher interest rate wouldn't be my issue. Frustrating, but I get it. The extra 3K of options, that you especially said you didn't want, is what would've killed it for me.

Which dealer was this? Hopefully not pylon's!

I'm not going to name the dealer just in case!

At the end of the day it's just a car. My frustration is that when I placed my order it was at a payment that I could justify and afford. VW failed to deliver the car in that model year and now the landscape has changed dramatically. The same car would have cost me almost double the monthly payment which I can't afford.

Interestingly, VW finance is currently offering 3.99% lease rates on other models but 9.19% on the vehicles they have no problem selling. The dealer knows full well that when I walked away someone else was willing to pay up and buy the vehicle. It's a business after and it's all about supply and demand.