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Model specific boards => Golf mk8 => Topic started by: Paul70 on 18 October 2021, 14:46

Title: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Paul70 on 18 October 2021, 14:46
Any thoughts on this point, has anyone ordered a new car in the last month with a significant discount? Have seen a couple of articles recently suggestion limiting supply is more strategic than a true shortage of electronic components. Appreciate there will always be conspiracy theories out there and only time will tell but interested to hear your view.

I did check back through posts to see if this topic has been raised.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Carl_45 on 18 October 2021, 15:23
My sister went to VW to look at swapping her T-Roc for a GTI, other than the finance company deposit contribution (£1250) there was absolutely no discount on offer and a very optimistic 40 week delivery quote.

It was the same on the demo GTI she drove, that had a few k miles on and was actually more expensive than the new one they quoted and with zero discounts even tho they wanted her (very good condition) T-Roc to sell on their forecourt.

I posted this video before….

 https://youtu.be/9ZlBNS4OmaI (https://youtu.be/9ZlBNS4OmaI)

It’s worth a watch.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Talk-torque on 18 October 2021, 15:31
Strategic? No way. My dealer has no new stock and little to offer incoming. The knock on from that is that he has little used stock, most of which has been hanging around for a while. It’s the same story for all makes, so, unless dealers have developed a Lemming mindset, they are, indeed, victims of the chip shortage.

Given that situation, discounts seem unlikely, but, as ever, will be down to the individual transaction.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Paul70 on 18 October 2021, 15:42
Strategic? No way. My dealer has no new stock and little to offer incoming. The knock on from that is that he has little used stock, most of which has been hanging around for a while. It’s the same story for all makes, so, unless dealers have developed a Lemming mindset, they are, indeed, victims of the chip shortage.

Given that situation, discounts seem unlikely, but, as ever, will be down to the individual transaction.

Sorry, should have been clearer, VW / car manufacturers strategy, not dealership strategy. I am sure the dealerships are feeling the pain at the moment!
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: ar899 on 18 October 2021, 15:47
On line brokers appear to be offering similar discounts to what they were offering a year ago.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: SRGTD on 18 October 2021, 16:38
On line brokers appear to be offering similar discounts to what they were offering a year ago.

I received one of the generic emails from Drive the Deal today and yes, they’re still offering discounts. Lead times are likely to be long though, although unlikely to be any longer than they are if ordering a new factory build car direct through a dealer rather than a broker.

Here are the VW’s that were listed in the email that give an idea of the discounts currently available; 15% off a Golf GTI and GTI Clubsport and 14.5% off a Golf R.

(https://i.postimg.cc/C5gxnfbz/A869-F415-4984-4652-A0-CD-D5-DB9-A351591.jpg) (https://postimages.org/)


(https://i.postimg.cc/2SVr6xg0/AE292046-0263-4-EB3-8-E8-D-B3380-BDA8-F2-C.jpg) (https://postimg.cc/5XdZK84z)
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: BillSan on 18 October 2021, 16:57
It's interesting that DTD are still offering these discounts.  I have been kicking myself for ordering my Clubby on a lease (rather than a PCP) back in June.

Since then all I've heard is that new cars are going to get more expensive and present longer waits.

If I can order a new Clubby in 18 months time it should hopefully arrive as my current one goes back and, from the prices that DTD are quoting, it may not cost much more.   I'd be happy with that.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: king monkey on 18 October 2021, 17:17
The Inchape group now have a zero discount policy on new cars as there’s a 40% reduction of new cars available.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: fredgroves on 19 October 2021, 09:01
The squeeze apparently is on the trade price to the dealers - the OEM's are increasing their margins.

At the same time the rumour is that they are restricting supply.

Reduced margin + long waits (increased customer demand) = no discounts...

DTD is still offering the discounts (good ones at that!), but I wonder for how much longer.

I can't remember if the DTD VW supplier (I won't name them!) will honour your discounted price if it changes between order and delivery... but with a 12 month wait you certainly will be at the mercy of list price increasing, which could take you into luxury car tax...so I'd be careful about sailing too close to the evil 40k limit.

Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: ar899 on 19 October 2021, 09:21
The squeeze apparently is on the trade price to the dealers - the OEM's are increasing their margins.

At the same time the rumour is that they are restricting supply.

Reduced margin + long waits (increased customer demand) = no discounts...

DTD is still offering the discounts (good ones at that!), but I wonder for how much longer.

I can't remember if the DTD VW supplier (I won't name them!) will honour your discounted price if it changes between order and delivery... but with a 12 month wait you certainly will be at the mercy of list price increasing, which could take you into luxury car tax...so I'd be careful about sailing too close to the evil 40k limit.

Presumably on line brokers will have to keep 'some' discount otherwise they will cease to exist?!
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: davo245 on 19 October 2021, 09:41
On line brokers appear to be offering similar discounts to what they were offering a year ago.

I received one of the generic emails from Drive the Deal today and yes, they’re still offering discounts. Lead times are likely to be long though, although unlikely to be any longer than they are if ordering a new factory build car direct through a dealer rather than a broker.

Here are the VW’s that were listed in the email that give an idea of the discounts currently available; 15% off a Golf GTI and GTI Clubsport and 14.5% off a Golf R.

(https://i.postimg.cc/C5gxnfbz/A869-F415-4984-4652-A0-CD-D5-DB9-A351591.jpg) (https://postimages.org/)


(https://i.postimg.cc/2SVr6xg0/AE292046-0263-4-EB3-8-E8-D-B3380-BDA8-F2-C.jpg) (https://postimg.cc/5XdZK84z)

Did a quote on car wow last week last year 14% same dealer same car this year 0.2% so I would say that's a no.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: ar899 on 19 October 2021, 09:55
On line brokers appear to be offering similar discounts to what they were offering a year ago.

I received one of the generic emails from Drive the Deal today and yes, they’re still offering discounts. Lead times are likely to be long though, although unlikely to be any longer than they are if ordering a new factory build car direct through a dealer rather than a broker.

Here are the VW’s that were listed in the email that give an idea of the discounts currently available; 15% off a Golf GTI and GTI Clubsport and 14.5% off a Golf R.

(https://i.postimg.cc/C5gxnfbz/A869-F415-4984-4652-A0-CD-D5-DB9-A351591.jpg) (https://postimages.org/)


(https://i.postimg.cc/2SVr6xg0/AE292046-0263-4-EB3-8-E8-D-B3380-BDA8-F2-C.jpg) (https://postimg.cc/5XdZK84z)

Did a quote on car wow last week last year 14% same dealer same car this year 0.2% so I would say that's a no.

Funnily enough, did the same with CW yesterday and got 85 quid off an A3 which is 0.2%. Coast2Coast and DTD seem to still be offering sizeable discounts. I always found CW discounts to be less than others.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Sootchucker on 19 October 2021, 10:35
I'd also read sometime ago, that post "chipgate" the general consensus is that the manufactures won't go back to the same business model they had before. They are already prioritizing models that net them the most margin, and apparently (if you believe what you read on line), that will continue, and by "artificially" limiting supply they can keep the prices inflated.

Not sure how this will work personally, because for every person that can afford a €40-50,000 plus car, there's probably 10 or more that can't or won't spend that amount of money on a new car. So if (for instance), VW make 100,000 cars a month, and they decide to produce only the expensive or high margin ones, then how many will they sell a month, 20,000-30,000 ?? Even with increased pricing and margins, can that make up the shortfall of 70,000 lower priced and margin cars a month that they won't be producing ?   

Personally I think think it will still be about volume and an even spread of upper tier though middle to lower tier models, but all with increased delivery times to make the market aggressive to keep discount levels offered to an absolute minimum. That's provided all manufactures do the same though. If one or more rivals think they can steal market share by under cutting the big German Marques though aggressive pricing strategies, then BMW, VAG, Mercedes etc. would surely have to follow suit ?
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: SRGTD on 19 October 2021, 12:02
Interesting video at the link below regarding reduced volume of new car production and supply, and manufacturers profits. Link was originally posted by forum member @Yusee on the mk7 forum board;

https://www.youtube.com/watch?app=desktop&v=9ZlBNS4OmaI
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Sootchucker on 19 October 2021, 15:22
Very interesting and slightly depressing at the same time.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: valentino on 19 October 2021, 15:53
Spoke to the salesman at my dealer in Nottingham, an he says at the moment they are not taking orders for new cars
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: HA54SYM` on 20 October 2021, 14:53
I do wonder how long some of the bigger retailers who work on "low margin mass sales" can continue without the inevitable job cuts if this carries on much longer. Something has to give....
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: evo1986 on 20 October 2021, 16:23
I do wonder how long some of the bigger retailers who work on "low margin mass sales" can continue without the inevitable job cuts if this carries on much longer. Something has to give....

From what I hear this is going to last till at least Q3 next year.

Now working for Select Car Leasing I can see delivery times across all the manufacturers.......
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: SRGTD on 20 October 2021, 16:42
I do wonder how long some of the bigger retailers who work on "low margin mass sales" can continue without the inevitable job cuts if this carries on much longer. Something has to give....

From what I hear this is going to last till at least Q3 next year.

Now working for Select Car Leasing I can see delivery times across all the manufacturers.......

So are other manufacturers delivery times similar to VW’s Lee?
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Foxy367 on 20 October 2021, 16:42
Really interesting videos and posts, when I drive past dealers and see so few cars on the forecourt it has got me wondering. I've read before that part of the reason that servicing was so high at main dealers was because their margins were so low. add in the fact that there are fewer cars to sell then a couple of things could happen.

1. Servicing prices increase to cover the dealership overheads
2. New and Used car prices increase further and less discount

but ultimatley

3. Some dealers (most of which are franchised) may have to close their doors as it no longer becomes viable.

I certainly agree that car supermarkets may become a thing of the past their business model has always historically been stack them high and sell them cheap if the supply isn't there and the prices increase to dealership levels where would you rather buy from a dealer and get warranty etc or a supermarket where you get balance of warranty at most?
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: evo1986 on 20 October 2021, 21:01
I do wonder how long some of the bigger retailers who work on "low margin mass sales" can continue without the inevitable job cuts if this carries on much longer. Something has to give....

From what I hear this is going to last till at least Q3 next year.

Now working for Select Car Leasing I can see delivery times across all the manufacturers.......

So are other manufacturers delivery times similar to VW’s Lee?

I will put together something tomorrow but quite simply if you want any Mercedes, BMW, Audi or VW you are ordering now for next Summer.

Landrover 9-12 months on everything
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: jaceyboy on 21 October 2021, 12:11
I do wonder how long some of the bigger retailers who work on "low margin mass sales" can continue without the inevitable job cuts if this carries on much longer. Something has to give....

From what I hear this is going to last till at least Q3 next year.

Now working for Select Car Leasing I can see delivery times across all the manufacturers.......

So are other manufacturers delivery times similar to VW’s Lee?

I will put together something tomorrow but quite simply if you want any Mercedes, BMW, Audi or VW you are ordering now for next Summer.

Landrover 9-12 months on everything

Then the car market will die as people will just keep what they have, including me
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: ub7rm on 21 October 2021, 15:50
Seems to me that the golden age of 'cheap' anything and mass consumerism is over.  It was nice while it lasted...
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Stretts on 22 October 2021, 08:36
We ordered a Manual GTI mid September. Dealer quoted end of May next year ish!!!!!
Looks like I will be putting some more miles on my MK8 etsi R line
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Kenis on 22 October 2021, 09:31
I can't remember if the DTD VW supplier (I won't name them!) will honour your discounted price if it changes between order and delivery... but with a 12 month wait you certainly will be at the mercy of list price increasing, which could take you into luxury car tax...so I'd be careful about sailing too close to the evil 40k limit.

its my first time buying through DTD but as I understand it after that intro they are sort of out of it and the deal is directly between the dealer and the buyer. So far I've had no indication that the deal/terms are not being kept to. I was originally told to expect September, so even though my last update (6th Sept) was an unconfirmed BW 47 and that has presumably slipped, I cant see how they could back out of the deal.

totally agree with the 40k thing, my sub 40k spec would have been tripped now anyway with the first set of price adjustments let alone ones still to come. Although the other thread on this topic  suggests some dealers might give some form of accommodation for that happening.

if only they had offered the CS45 in Dolphin - I'd probably have got that and it might have taken priority AND held its value more into the future due to what will become an even more limited run than they might have thought for very minor differences vs the standard (exhaust aside)
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: phope on 22 October 2021, 11:26
The important parts of the sale contract between DTD's dealer and you are shown here - the dealer does have the right to cancel the sale contract if they are unable to fulfil your order (as do you) within 3 months of the original estimated delivery date - clearly the delivery timescales are outwith their control due to supply chain issues/factory downtime


(https://i.postimg.cc/CMbfcsDK/1.png) (https://postimg.cc/XX7JJFsM)

(https://i.postimg.cc/9FVwKwtY/2.png) (https://postimg.cc/t7SgVTcs)
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Carl_45 on 22 October 2021, 19:18
if only they had offered the CS45 in Dolphin - I'd probably have got that and it might have taken priority AND held its value more into the future due to what will become an even more limited run than they might have thought for very minor differences vs the standard (exhaust aside)

Not the topic here, however, I too would have loved the dolphin grey. When the first brochure to include the 45 was issued I’m certain it said something like “metallic paint option not available in all regions” and the dealer told me it was dolphin grey, but not available in the uk. It looked great.

Since then the brochures have changed to say that the car is moonstone, but I’m not convinced. It looks metallic to me. I do like the moonstone grey, but so so common on so many cars now.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: willni on 23 October 2021, 09:01
I do wonder how long some of the bigger retailers who work on "low margin mass sales" can continue without the inevitable job cuts if this carries on much longer. Something has to give....

From what I hear this is going to last till at least Q3 next year.

Now working for Select Car Leasing I can see delivery times across all the manufacturers.......

So are other manufacturers delivery times similar to VW’s Lee?

I will put together something tomorrow but quite simply if you want any Mercedes, BMW, Audi or VW you are ordering now for next Summer.

Landrover 9-12 months on everything

Then the car market will die as people will just keep what they have, including me

Was speaking to a salesman in JLR the other week, it's not a matter of people keeping what they have it's do you want this Defender? No, looks at a list of 50 people ok it's now sold.

Mercedes, BMW, Audi or VW can get units out quicker because there's less specification on them requiring less semi-conductors, JLR tend to have more so more semi-conductors means longer wait.

What we will 100% be seeing is a repeat of the mk7R 'PCP' spec cars across the board now, as people will not want to wait for a 360 degree camera etc that adds 3 months onto the build time, so the plainest versions will be sold.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Exonian on 24 October 2021, 15:16
The car market is just plain weird at the moment so it’s probably not worth speculating too much. There are too many side issues to make an informed guess.

Will has a point though. With huge order backlogs it would make sense for manufacturers to stop taking new car orders and drip feed lower spec cars to dealers who would have a waiting list of prospective purchasers/leasers. This would keep all factories and dealerships ticking over in the short to medium term.
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: king monkey on 24 October 2021, 16:55
I went into a dealer today. One new car in the showroom. Just one. Wanted to make an offer for mine but I remained strong!  :grin:
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: Exonian on 24 October 2021, 17:12
I’m guessing it wasn’t a 1.0 80bhp Polo in there?  :whistle:

A BMW/MINI salesperson told me recently that they’d been told to remove new cars from their showrooms so as people coming in were under no illusions about stock availability (ie. the complete lack of cars) 
Title: Re: New car (Double Digit %) discounts - are they a thing of the past?
Post by: king monkey on 24 October 2021, 17:37
It was some Arteon variant. They had a Clubsport, Mk7.5 GTI, Polo Gti and a big standard Mk7.5 Golf. It was like the zombie apocalypse had happened while I drove over.