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Vw moving to a direct sales model

MrMusician18

From 2026, VW is moving to a direct sales model for all it's brands and existing dealership contracts will be terminated. Dealers are now going to be offered a handover and service contract instead.

It's not clear to me if service centres will still offer test drives and a show room experience but what it does mean is that all sales are now going to be direct through VW. It also means only a single trade in price being offered.

While this move is undoubtedly good for VW as they will now capture the dealers margin, will this extra efficiency be any good for the consumer?

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DrPsychia

https://www.boards.ie/discussion/comment/122202406#Comment_122202406

Association does not imply causation.

If road deaths increase in one year, it doesn't mean that a specific factor, ADAS as you say, contributed to this increase.

Since 2003, there are approx. 1 million extra vehicles on our roads, up from 1.9M - 2.9M. Since 2014 approximately around 500k extra vehicles on our roads.
https://www.gov.ie/en/publication/f392d-bulletin-of-vehicle-and-driver-statistics/

In 2003 our population was approximately 4 million, today its approximately 5.2 million.
Our population in 2016 was approximately 4.6 million, today somewhere in the region of 5.2million, an extra 500k people.

Yet accidents and road deaths are trending downwards despite the substantial increase in vehicles on our roads, and population. It's important to note that ADAS technology isn't the only factor that improved figures. Better roads, more road safety campaigns etc also helped.

In fact, 24 out of 30 counties in the EU seen a decrease in road deaths, taking an average of 2017-2019 compared to average from 2023.
https://www.rte.ie/news/primetime/2024/0410/1442258-rising-road-deaths-why-is-ireland-bucking-the-european-trend/

You're trying to attribute ADAS for the increase yet providing no evidence to support your claims, nor are you considering the other factors. I guess that doesn't suit your narrative.
Ignorant of facts.

mickdw

https://www.boards.ie/discussion/comment/122201953#Comment_122201953

But Vw have no entitlement to insist on them being the only trade in option. Firstly you have all the other manufacturers for new cars and secondly, you have the the independents and as is now the case, most main dealers have an independent sales outlet so even if vw somehow didn't allow their dealers to buy returning pcp cars from customers (I don't think they can stop this anyway), what is to stop aanother section of the dealer in same ownership from buy direct from customer.

At the end of the day, the general market will decide and there won't be an extra 2 or 3k there for vw to just soak up.

[Deleted User]

https://www.boards.ie/discussion/comment/122202842#Comment_122202842

Lol, you're ignorant if you think all the tech in cars + infotainment is not having an impact, they can't prove mobile phone use is causing crashes how are they going to know all the in car entertainment is not having an impact , how are they going to prove someone was fumbling through spotify playlists or trying to adjust the climate through menus at the time of impact ? that's an absolutely ridiculous statement to make.

DrPsychia

https://www.boards.ie/discussion/comment/122203244#Comment_122203244

I never stated that there were no deaths or accidents caused by infotainment use, or ADAS systems.

What I am saying is that there's no evidence to support your claim that the significant increase of more complex car infotainment, and increasing prevalence of more advanced ADAS systems in modern cars has led to an increase in deaths or collisions.
Data shows a decrease in deaths and accident related injuries despite the significant increase of vehicles in the national fleet and population.
https://data.gov.ie/dataset/roa27-traffic-collisions-and-casualities

Liam2021

I think some people did not have a good experience with their VW cars and this is showing in all the negative comments, not all people have had a negative experience with all the new tech in cars. There is also no evidence that this new tech is causing more deaths on the road.

Is there any chance the Mods can move this conversation back to the original topic and let the negative comments have a different page.

Vw moving to a direct sales model.

Calahonda52

https://www.boards.ie/discussion/comment/122203746#Comment_122203746

I agree 100%, it reads like an Angela McNamara agony column.

No wonder folks leave this site when there is so much off topic verbal diarrhoea tolerated.

[Deleted User]

https://www.boards.ie/discussion/comment/122203625#Comment_122203625

I suppose in car tech is really wonderful surely it can't have an impact on accidents ? How long before car manufacturers get sued ?

There's a reason mobile phone use in cars is illegal, why should playing with the infotainment or instrument cluster be treated any differently ? or having the car's functions such as climate, radio etc all be controlled by the screen ?

What do we do next, create even more advances systems so people can play with these systems safely ? lol

https://www.hupy.com/library/car-infotainment-system-dangers.cfm#:~:text=A%20study%20by%20IAM%20RoadSmart,or%20cannabis%20use%20while%20driving.

https://www.kffjlaw.com/blog/the-hidden-dangers-of-car-infotainment-systems/

[Deleted User]

https://www.boards.ie/discussion/comment/122203761#Comment_122203761

And you're toxic diarrhoea. Following people around forums trolling.

Liam2021

Can we get back on topic.

Vw moving to a direct sales model

MrMusician18

https://www.boards.ie/discussion/comment/122202913#Comment_122202913

Say an independent dealer takes in a VW trade. They would then have to sell that person a used vehicle or another brand and all the brands apart from the japs and Koreans are moving to agency or give them cash.

The reality is that most drivers stay brand loyal, especially those on the new every three years pcp merry go round. VW will completely own the sub 5yo VW group market.

One thing interesting about the agency model is that if done correctly it can really reduce the amount of stock a dealer is carrying. Correctly done, internal auctions would essentially be able to deliver any flavour of used VW to order to any dealer. Tell your dealer you want a tiguan 2yo comfort line sub 30k km in black and he will very easily be able to get it for you and you can even set a ceiling on what you will pay.

goochy

Vw aren't going to be making 2k profit selling a trade in . In the trade . There can't be x2 groups making a profit off a trade in

mickdw

https://www.boards.ie/discussion/comment/122204463#Comment_122204463

No as I see it..... taking the example of our local vw dealer. They have a car supermarket adjacent.

Supermarket buys returning pcp vw direct from customer if for some reason vw dealer isn't allowed to. They write a check a fair trade price and settle the finance. Offer should easily beat vw offer if people think they will be offering poor value to the point of dealers still being able to buy off vw after them swallowing up a couple of grand.

Customer buys new vw online.

The only way vw could counteract this is to offer extra discount to vw returning customers so either way, value to customer should remain.

goochy

But alot of people will want to buy a used vw with vw used warranty and vw finance avail. .sales people for these brands will fo elsewhere as there is not much opportunity to sell anymore

Sam Russell

A number of years ago, I wanted to buy a new Passat for cash. I could not get 1c off the list price from the local VW dealer, despite being known to them.

Another time, I wanted to buy a VW Golf (used) and the salesman tried to sell me a HP finance deal despite me saying I only wanted to pay cash. I did not even get to look at the car.

So, I predict this is not going to benefit the customer. I currently own a 10year old VW that I have owned for 8 years and will keep it till it dies.

[Deleted User]

For all those saying it will put people off buying VWs, it won’t, certainly not in the long term because in all probability, this is the way all manufacturers will go.

I actually think it will benefit buyers in the long term as it will do away with the different specs in the same model of cars. I have often paid more for a spec above basic because it had a couple of features I wanted, but also included a lot I didn’t want, yet had to pay for. With online ordering, like Porsche, everyone will start with the basic car and only add on/pay for the features you want, this will be a good thing.

Also, we now have platforms to sell our cars (mostly at a higher price) rather than having to rely/shop around for better trade in prices. A couple of quid and a few minutes on MotorCheck.ie gives you the private and trade in value, sell your car, order new one online and you are done. The days of people needing dealerships for anything other than test drives and servicing are gone.

elperello

What about "goodwill" for work done outside warranty.

There was often a bit of wriggle room with dealers.

Will it just be "computer says no" dealing directly ?

[Deleted User]

https://www.boards.ie/discussion/comment/122207146#Comment_122207146

Such is life in a digital age. For all those who benefit from wriggle room, there are those who complain about lack of transparency. If a manufacturer clearly outlines what work is covered, everyone knows where they stand before pressing the “order” tab.

Sam Russell

https://www.boards.ie/discussion/comment/122207317#Comment_122207317

Well, not really.

The Mazda diesel problem is such a case. The diesel engine destroys itself completely after a number of years beyond warranty. [Something to do with fuel getting into the engine oil - not sure of the details, only not to buy a diesel Mazda.]

Now, the problem is not for all cars, but it has made diesel Mazda cars impossible to sell.

VW ID4s are getting a bad reputation over software - be interested to see how that will be handled under the current scheme, and how a similar case would be handled under direct sales.

[Deleted User]

https://www.boards.ie/discussion/comment/122207823#Comment_122207823

Is that relevant to direct internet sales? Surely those problems exist irrespective of whether its dealership or internet ordering. If you have an issue with a Mazda or ID 4, it is still the manufacturer rather than the dealership who makes a decision.

Sam Russell

https://www.boards.ie/discussion/comment/122207970#Comment_122207970

The point I was making was not all problems emerge during the limited warranty period. Most manufacturers rely on their dealers to provide 'good will' support to customers, particularly loyal ones.

Will VW do the same when they sell direct - eating the dealers lunch?

[Deleted User]

https://www.boards.ie/discussion/comment/122208036#Comment_122208036

Don’t kid yourself, no Mazda dealer is going to replace an engine without manufacturer approval. Besides, the dealers will still be there for servicing so you can bring it there if you have any complaints.

Cookie_Monster

https://www.boards.ie/discussion/comment/122207146#Comment_122207146

Goodwill is controlled at importer level, not dealer level in general and VW have a global goodwill platform for determining any goodwill offers to customers for issues experienced.

Also dont forget the move towards single spec models but locked by subscriptions, this is what vw and others are really after, where the long term income stream will be. Dealers will just get a few to deliver and pdi etc, maybe a cut of any subs subsequently "sold" to the customer and that's it.

elperello

https://www.boards.ie/discussion/comment/122208455#Comment_122208455

As you say in general the importer calls the shots.

However I know of cases where the importer dug in and refused any goodwill but the dealer went the extra mile.

Admittedly I'm not talking big ticket items like a new engine.

We'll see how it goes but this kind of market disruption is usually carried out when the disruptor believes it's to their advantage.

elperello

https://www.boards.ie/discussion/comment/122208036#Comment_122208036

I'd certainly prefer to be eyeballing the dealer rather than trying my luck with someone in a call centre.

carfinder

I expect the new system will benefit the consumer as there is one less margin taker in the value chain. The dynamics of the various competing manufacturers pushing for market share will ensure a contestable market and this should benefit consumers in the purchase of new vehicles.

The big issue is the trade in and I believe the dynamics of the 2nd hand market will now be very interesting. Manufacturers do not own this market at present but dealers could potentially get disintermediated. An alternative ecosystem at the newer end of the 2nd hand market is entirely possible as the value for the consumer will be the cheaper price on the new car purchase and a better price for their "old" car in an entirely separate transaction to the new car purchase. Challenging times ahead for the dealers for sure

Casati

Consumers that don’t shop around or ever considering haggling will potentially benefit, but everybody else will see higher costs. The dealer has to be paid and now VW used car sales division will also need a cut to cover their extra costs so it’s actually adding a layer not taking one away

Calahonda52

https://www.boards.ie/discussion/comment/122219318#Comment_122219318

dealer will now only be a repair centre and an advanced click and pickup so the end of the fancy show room

Casati

https://www.boards.ie/discussion/comment/122219508#Comment_122219508

You sure? My understanding was the dealer would still need the fancy showroom to display the cars

goochy

i still dont understand how it works - if i am in limerick can i waste a dealers time going on test drive etc then go home to cork and order car and VW will send me to local dealer to collect car ?

[Deleted User]

https://www.boards.ie/discussion/comment/122229165#Comment_122229165

Which part are you struggling with?