Volkswagen's ID electric vehicles will use a new, online-focused sales model

Polycount

Posts: 2,446   +549
Staff member

Moving forward, most ID vehicle customers won't be walking into a dealership to haggle over prices. Instead, they'll likely place the order for their car online, directly from Volkswagen, at which point they'll be prompted to select a "preferred" dealer as a local point of contact.

The dealer will then assume the role of an "agent," while still receiving the same compensation and commission that they would under the traditional dealership model. However, their actual job will be less focused on sales, and more on consultation, handling test drives, and "vehicle handover."

There are plenty of benefits to this new sales model for both dealers and customers alike. Customers won't have to sit through a frustrating sales pitch when they already know what vehicle they want, and dealers can rely on a consistent, "calculable" commission because the vehicle's price will now be set by Volkswagen -- there are no surprises.

Furthermore, Volkswagen says it will take on the burden for vehicle financing, in addition to bearing inventory costs and the "costs associated with showroom vehicles." All in all, Volkswagen seems keen to reduce the financial burden for dealers while encouraging them to take on a more customer service-oriented role in the sales process.

Though these changes might sound a bit controversial to some, Volkswagen says 100 percent of its retail partners are on board, which is quite the achievement. Volkswagen calls this new sales process the "agency model," created with the goal of unifying the showroom and online experiences. It remains to be seen how well the agency model will work for dealers, customers, and Volkswagen itself in the long run, but so far, it sounds like a win-win for everyone.

The new model is expected to take effect in European markets come June, with the launch of Volkswagen's all-electric "ID.3" hatchback.

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Vulcanproject

Posts: 1,138   +1,834
When I buy a new car I have an old fashioned urge to walk in, look the dealer in the eye, talk to these people and consider whether I want to be in bed with them on a major life purchase second only in value to a new home. It's important to me.

Online car sales won't cut it. If there isn't a personal rapport where I feel like I'm being BSed or fobbed off with my questions or support on the vehicle then I walk, and I have done many times.
 

Uncle Al

Posts: 7,098   +5,455
VW means Very Wary as far as I'm concerned. The days of German Engineering leading the world are long since dead and gone ......
 

toooooot

Posts: 1,247   +576
The best thing about this VW is that it looks nothing like Prius. The worst thing about this VW is that they probably lied about its range, toxicity to environment or something like that.
 

Nobina

Posts: 2,506   +2,099
The best thing about this VW is that it looks nothing like Prius. The worst thing about this VW is that they probably lied about its range, toxicity to environment or something like that.
Every car manufacturer lies about the range of it's cars. That is accepted for some reason. Expect VW to lie a bit more than the others.
 

Homerlovesbeer

Posts: 58   +66
The worst problem with this plan for consumers is no ability to negotiate a deal. It means fixed price so no savings which is very bad for consumers.

I'd rather be able to shop around and find a dealer willing to make less profit selling a car which saves me possibly thousands of dollars.
 

mailpup

Posts: 7,561   +708
TS Special Forces
There are plenty of benefits to this new sales model for both dealers and customers alike. Customers won't have to sit through a frustrating sales pitch when they already know what vehicle they want, and dealers can rely on a consistent, "calculable" commission because the vehicle's price will now be set by Volkswagen -- there are no surprises.
I'm not sure why it is such a great thing to have a set price and no need to negotiate. So many seem to want it. If a buyer hates to negotiate so much, he/she can always just pay the sticker price and be done with it. In essence that is what they would be doing with the price set by Volkswagen anyway.
 
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Joray K Joseph

Posts: 22   +29
The worst problem with this plan for consumers is no ability to negotiate a deal. It means fixed price so no savings which is very bad for consumers.

I'd rather be able to shop around and find a dealer willing to make less profit selling a car which saves me possibly thousands of dollars.
If you know why the car prices are higher you would be on board with online sales of cars. One things is that you don't pay dealer fees, they're markups and the sticker prices are already markups from the MSRP. Take all of those away and and are left with a lower cost hassle free purchase.

Adam did a very good video on this if you would like to learn more:
 

Homerlovesbeer

Posts: 58   +66
If you know why the car prices are higher you would be on board with online sales of cars. One things is that you don't pay dealer fees, they're markups and the sticker prices are already markups from the MSRP. Take all of those away and and are left with a lower cost hassle free purchase.
I'm not naive enough to believe VW will magically reduce the online price of their vehicles when the dealer disappears. VW knows the public has happily paid X dollars for their cars for years so they will just keep prices the same and reap greater profits.

100% guaranteed my friend!
 

BobHome

Posts: 70   +27
And if the first time you actually get to sit in the vehicle after your online purchase you don't like the seats or it feels cramped or is noisy on the highway or doesn't handle like you want or is sluggish, etc., etc. what do you do then?

I'm in the market for one, have 4 models in mind, but I want to actually sit in it and drive it a bit before signing my life away for 3-6 years of payments.
 

mailpup

Posts: 7,561   +708
TS Special Forces
And if the first time you actually get to sit in the vehicle after your online purchase you don't like the seats or it feels cramped or is noisy on the highway or doesn't handle like you want or is sluggish, etc., etc. what do you do then?
Personally, I wouldn't like to purchase a vehicle in this way but if I did, I would ask your questions before actually buying the car.