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GTI Incentives 1/9/19-2/28/19
- Thread starter Shane_Anigans
- Start date
Shane_Anigans
Drag Race Newbie
- Location
- SE MI
- Car(s)
- 2017 GTI Sport DSG
2/1/19 Update: Dealer cash increased by $1000 on 18/19 GTI. No changes to any other programs. This update was unannounced.
Sorry for being dense, but upon rereading this thread, I'm not sure I understand that answer to my prior question. Let me try again
Example - 2018 Autobahn - Dealer Cash is $3000; Special APR is $1000. Does this mean that if I buy the 2018, and finance at the Special APR, VW gives the Dealer $4000, which the dealer should (or might) pass on to me?
Separate questions on the finance program -- (i) is there a minimum dollar amount that must be financed to trigger the program; (ii) is there a minimum number of months I have to wait before I pay off the loan 100%; and (iii) even if I qualify for top credit (lowest rate) can I voluntarily take a higher rate to get more cash (qualify for Special but take Choice 2, adding 2 points to rate but increasing cash from $1000 to $2000)?
Thanks
Example - 2018 Autobahn - Dealer Cash is $3000; Special APR is $1000. Does this mean that if I buy the 2018, and finance at the Special APR, VW gives the Dealer $4000, which the dealer should (or might) pass on to me?
Separate questions on the finance program -- (i) is there a minimum dollar amount that must be financed to trigger the program; (ii) is there a minimum number of months I have to wait before I pay off the loan 100%; and (iii) even if I qualify for top credit (lowest rate) can I voluntarily take a higher rate to get more cash (qualify for Special but take Choice 2, adding 2 points to rate but increasing cash from $1000 to $2000)?
Thanks
The dealer can pass to you:
- Cash from MSRP to invoice
- Dealer cash
- Financing incentives
- Holdback (if they are whoring cars out for volume)
There may additional advertised incentives you qualify for.
There should be no minimum dollar amount to trigger the incentives, only credit score. You can pay the loan off in full when the first payment date arrives. You should be able take the higher rate and more cash and pay it off at the first payment date. In most states, prepayment penalties on auto loans are illegal.
Thanks very helpful. A dealer told me that if I pay the loan off before I've made 4 payments, then VW takes back the finance cash from the dealer. Do you know if that is correct? (To be clear, its not that the dealer would want me to pay it back the financing incentive, its just that the dealer loses out)
That’s the Dealer’s risk to take, not yours.
Shane_Anigans
Drag Race Newbie
- Location
- SE MI
- Car(s)
- 2017 GTI Sport DSG
VW Dealer cash only applies to vehicles purchased with cash or bank/credit union/3rd-party financing. It cannot be combined with Special APR or Special lease programs. So, if you opt to use special financing, the dealer will not receive (or pass on) the dealer cash incentive, they (you) will only receive the APR cash associate with the rate package.
I don't believe this is true, but I will scrutinize the fine print on the program documents to verify that.
Ok, so still a bit confused. Does this mean that, in my example, the dealer does NOT get the $4000 ($3000 dealer cash + $1000 Special APR) - instead dealer maxes out at either $3000 or $1000?
Shane_Anigans
Drag Race Newbie
- Location
- SE MI
- Car(s)
- 2017 GTI Sport DSG
The dealer does not receive the $3000 dealer cash if the vehicle is financed using the special APR program. The lower interest rate is its own incentive. Most/all manufacturers offer a larger cash incentive in lieu of special financing, since they're making more off of the interest by financing the purchase at their standard rates, or getting the entire sum paid at the time of sale by the bank that issues the loan. For car companies that publish their cash incentives, you see ads that say "Choose $3000 cash back OR 1.9% financing" etc.
got it, thanks. So I can actually generate the most $$ from VW to the dealer (which may get passed on to me) by not taking the VW financing (paying cash or 3rd party financing) because the $3000 dealer cash is greater than any of the financing payments to dealer.
But I'm still puzzled by guys saying they got, for example, $5650, off the msrp of a 2019 AB. Assuming the dealer sells for invoice (36,506, DSG), assume $3000 dealer cash and $500 partner cash, that yields a discount off msrp of $4984. That leaves $666(!!) unaccounted for - are dealers really dipping that far into holdback (2% of msrp) this early in the model year? Or am I missing some other area of dealer profit or are my numbers otherwise off?
There might be another incentive or two they qualified for, like Military / First Responder or Recent college grad, autoshow bonus cash, etc. Some dealers may even go into the holdback (cash bonus paid to dealer after the sale and dependant on volume).
Shane_Anigans
Drag Race Newbie
- Location
- SE MI
- Car(s)
- 2017 GTI Sport DSG
By combining the available dealer cash ($5000, but don't expect to see that ever again), partner program discount, and adding another $1000 in "marketing allowance," I was able to get a 2017 Sport for something like $8000 under MSRP. Some dealer will also go into their holdback and probably some other back-end incentives, on the basis that they'll make it back in volume bonuses.
The dealer did push to get the deal in by Jan 31 even though I didn't take delivery until Feb 2 (some paperwork was dated 1/31 and the finance app was also submitted 1/31). My guess on the unaccounted difference is that the dealer was trying to meet a quota for a manufacturer bonus by the end of the month, was willing to go into their holdback, and also made a bit of cash on the mark up on the included accessories (homelink, monster mats). It was maybe a little risky for them as I suppose I could have just backed out of the deal before delivery.
I still think you should be able to find someone willing to offer you a similar deal - especially with the increased incentives as of 2/2. My guess is that incentives will only increase as the year goes on as the MK8 will debut sometime soon.
XM_Rocks
Autocross Newbie
- Location
- Austin, TX
Who cares if the dealer has to pay it back?
I refinanced the VW Credit 2.9% rate ($750 bonus for me) before I even paid the first payment.
My CU at the time got me 1.45% for 60 mos.
Shane_Anigans
Drag Race Newbie
- Location
- SE MI
- Car(s)
- 2017 GTI Sport DSG
It is not correct:
Bonus Programs
- Bonuses will be paid based on the contract date.
- Bonuses are applicable to all tiers.
- Bonuses may be used with special rates only.
- Bonuses will be paid out after contract funding.
- In order to ensure bonus payment at time of funding, please report the unit sold prior to funding package receipt at our service centers.
- All reconciliation and payment inquiries must be received within 60 days of the date of funding. All deals are subject to verification and validation through the reporting system.
That text is taken directly from page 1 of the 2/1/19 release of the VCI Official Rules. It does not take them 4 months to fund a contract.