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Question- I’ve been, as many of you, exited about the arrival of my 1st Edition ID.4. My dealership has been very helpful and professional. Suddenly I’m a bit concerned with what my dealer is telling me about the cost of the car. My salesman is telling me that Volkswagen will not permit any discounting off MSRP for the first year. Is this true? They expect me to pay full MSRP. I’m leaning toward leasing my car as I don’t drive many miles per year. MSRP minus the 7500 tax incentive will cost me 490.00 and that’s with me putting $5000.00 down. This seems high. Thoughts? I can lease a 45,000 Acura for $425.00/month with almost no money down. Just feels like my dealership is taking advantage of the situation and passing off the tax incentive as a discount they are offering.

My app just updated today and it says

“MSRP
Did you know that your dealer will set the actual price of your reserved ID.4? The value you see here reflects the manufacturer's suggested retail price of your vehicle, excluding additional taxes, fees, and charges that will be included within your final contract. “
 

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Supply and demand. I remember the first PT Cruisers selling for thousands over MSRP. Currently here in San Antonio, Ford dealers are asking well over MSRP for the Mach E, one at least $5,000. Six months from now you will probably be able to buy that same car a bit over dealer invoice with sizeable rebates and special financing. I spoke to all three local VW dealers here and all offered the same $500 off MSRP. WOW! I want the car now so I guess I had better forget the auto buying axiom "always negotiate up from invoice and never down from MSRP". As much as I have searched online for the invoice price of the ID.4 there is no place for it to be found as far as I know. I am now standing in line for the VW Kool Aid
 

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My salesman is telling me that Volkswagen will not permit any discounting off MSRP for the first year. Is this true?
Just as VW can’t force dealers not to sell over MSRP, they can’t forbid dealers discounting the car either. Having said that, it is a new car with small supply and in demand so you will be hard pressed finding a dealer willing to sell at a discount.
 
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The VW dealerships all agreed to participate in the online purchase process. They are assured of a percentage of the MSRP for being the local contact. They are not the persons who negotiated the price when the reservation was made. In essence, a person was agreeing to the MSRP when they ordered. If this is unacceptable, then ask for your deposit and walk away.
The dealerships can charge for registration filings and add ons, but these are normal costs for all cars. The destination fee was clearly identified in the reservation process.
 

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The reference I should have attached was an article posted May 20, 2020 on the new sales model wherein the dealerships agreed to being agents for transitioning cars to buyers. It is a new process, not like it used to be where the dealer owned the car and could haggle.
 

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So IIRC that article was VW specifically and the Europe dealers. The US based VWOA has not been quite so successful, but the intent was there, I think.
 
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...and again

 

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Question- I’ve been, as many of you, exited about the arrival of my 1st Edition ID.4. My dealership has been very helpful and professional. Suddenly I’m a bit concerned with what my dealer is telling me about the cost of the car. My salesman is telling me that Volkswagen will not permit any discounting off MSRP for the first year. Is this true? They expect me to pay full MSRP. I’m leaning toward leasing my car as I don’t drive many miles per year. MSRP minus the 7500 tax incentive will cost me 490.00 and that’s with me putting $5000.00 down. This seems high. Thoughts? I can lease a 45,000 Acura for $425.00/month with almost no money down. Just feels like my dealership is taking advantage of the situation and passing off the tax incentive as a discount they are offering.

My app just updated today and it says

“MSRP
Did you know that your dealer will set the actual price of your reserved ID.4? The value you see here reflects the manufacturer's suggested retail price of your vehicle, excluding additional taxes, fees, and charges that will be included within your final contract. “
Why are you putting 5k down? Interest is always upfront. If you have a good credit rating, put as little down as possible it will not effect your payment that much. Always remember if you leave the lot and total your car that 5k is gone. Insurance will pay dealer for car and they will not replace it. You would have to start over with a new lease new down payment Oops! Don’t want that.
 

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In Washington State, many dealers are making goodwill gestures by discounting off MSRP to bring the selling price plus destination charge to the maximum allowable for our state sales tax exemption. With the First Edition, $190 out of their pockets keeps over $2,500 in ours.
 

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Why are you putting 5k down? Interest is always upfront. If you have a good credit rating, put as little down as possible it will not effect your payment that much. Always remember if you leave the lot and total your car that 5k is gone. Insurance will pay dealer for car and they will not replace it. You would have to start over with a new lease new down payment Oops! Don’t want that.
Im with Brad on this. If you drive off the lot, and 5 min later car gets totalled, you are out your deposit. Best thing is to ask for out the door price with only 1st payment and state licence/title fees for lease. You can also ask for the buy rate for the money factor on the lease as well.
 
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