You’ll have to bear with me on this one but car dealer’s profitability would be very much enhanced by including items which might in normal circumstances be chargeable, free.
Manufacturers are already including warranties for “life” and offering free servicing on new cars but now there are many extras which have a perceived high value on used cars as well.
Things such as free MOT’s for life, free servicing or vouchers for accessories. These items, included in the price, are designed to take the focus away from discounting cars by including value adders which are a cost to the dealer but nowhere near as costly as taking hundreds of the price of cars when discounting.
The evidence proves that in many ways customers, who are not used to or do not enjoy the process of haggling, are happy to buy cars in this way. They still retain the peace of mind that they are getting the right car for a fair price but also that they are getting value added benefits like low rate finance, free accessories or no cost maintenance for 3 years etc.
“Das WeltAuto” (literally translated as “The World Car”) is a scheme being launched by VW to do just this. When buying a used VW from a franchised dealer a buyer can choose from a list of benefits which will suit their lifestyle and appeal to the needs of the individual customer. This will then hopefully deflect from the need to negotiate on price and therefore subsequently improve profitability.
The Das WeltAuto scheme breaks down as follows:
Guarantees and Checks (of course)
Minimum 12 month Volkswagen All Component warranty
30 day / 1,000 mile “no quibble” exchange promise
Full history check
Comprehensive testing and reconditioning
Preparation to Volkswagen standard
Plus one free option from the following list:
1 year’s Volkswagen Roadside Assistance
3 years’ MOT protection
MOT tests for life
£100 worth of accessories
£100 off a used car service plan
Or as an alternative to the above, 2 years’ servicing at a significantly reduced price.
The scheme goes live throughout the VW dealer network on 22nd April
As each manufacturer raise the stakes car dealers, for their part, need to ensure that their approved cars are prepared and presented to the highest possible standard and marketed competitively from day one. Car buyers will then really feel that they are getting the very best value for their money and dealers will be able to retain more profitable deals as a result of better standards and an enhanced service which could potentially benefit everybody.
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