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Re: Non-BMW Auto Purchase ?

Allen,

I've had several VW's and have found them to be great little cars.  If 
it wasn't for my M3, I'd have a VR6 Jetta.  As you've done your homework 
you seen that VW has very little markup on their cars, generally less 
than 10%.  This makes it tough for a dealer to go as low as they have 
such a small margin to work with.  However, your method sounds correct 
and the $500 factory to dealer incentive should definitely be passed on 
to you.

A couple extra thoughts for you... Has your girlfriend looked at the VR6 
Jetta? It's a bit more $$'s but a hell of a lot more car.  You need to 
drive one before you spring for the 4 banger.  Also, in case you don't 
know there is a totally new generation Jetta coming out by the end of 
the year that is supposed to be quite extraordinary.  Better than the 
Passat is what a couple magazines have said.  It might be worth waiting 
a couple months.  You can check it out at:

 http://www.scottvw.com/newcars/a4jetta/a4jetta.htm

Good luck,

Calvin Hare
Orlando, FL
'96 M3 Lux
'97 VW Cabrio

>From: [email protected]
>Date: Sun, 25 Oct 1998 11:39:56 EST
>To: [email protected]
>Subject: Non-BMW Auto Purchase ?
>
>My girlfriend wants to buy a 1999 VW Jetta (save your groans, I still 
do love
>her).  What I need advice on is how much should she pay? List for the 
auto is
>$18,465, dealer invoice is $17,086. If I subtract the 2% holdback and 
the $500
>factory to dealer incentive I come up with $16,217 as the dealer cost. 
I have
>read that 3-5% over dealer cost is an acceptable profit, bringing 
purchase
>price to $16,704 - $17,028. I respect that the dealer has to make a 
profit,
>just not a huge one.
>
>I thought that I was doing good when I got the dealer down to $17,400, 
that
>was before I read the local newspaper today indicating that dealers get 
$500
>back from the factory (not shown at Edmunds or Kelly's web site). And 
here I
>was patting myself on the back for getting them to come close to my 
initial
>offer of $17,200 with just 15 minutes of negotiating, I should have 
known.
>
> 
>I guess what I'm asking is if this formula seems reasonable? I know 
other
>factors can set how low the dealer is willing to go, but am I on the 
right
>track in determining how much me lady should pay? Thanks all.
>
>Allen
>1986 635
>
>
>


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