But don't panic. These prices aren't sustainable.
The simple laws of supply and demand mean that the number of people wanting to buy VWs at these prices will shrink dramatically. Buyers will simply look elsewhere.
For run-of-the-mill models maybe, but VW have addressed the low demand issue for the more desirable GTI and R by limiting supply. Secondly, the manufacturers and supply chain are stabilising at a new lower level of production and in doing so will require higher margins in order to maintain profit/unit. And the dealers, whos overheads are going up, not down, will also want to maximise margins. So I'd anticipate prices remaining high and maybe even going higher with little desire for discounting, particularly on the desirable models.
I agree the private buyer market in general will stall in the next few months but (though reduced) the fleet market will remain healthy.
At 125p/gallon, it is in the treasury's interests for us to drive less economical cars

but I'm sure the governments CO2 target trumps that issue...