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Volkswagen’s diesel scandal has three key victim categories: customers, the environment, and the company itself, facing immense fines and repair costs. However, an often-overlooked casualty is Volkswagen’s own dealers, who are now in a precarious situation.
Due to a stop-sale on all 2-liter diesel models, many dealers find themselves with a significant portion of their top-selling inventory stuck in their lots. Additionally, Volkswagen has abandoned its attempt to secure EPA certification for 2016 2-liter diesel models. Local dealers are expected to face intense consumer backlash, as it’s easier to confront a local service manager than the corporate office in Wolfsburg.
In an effort to mitigate the impact on its American dealerships, many of which exclusively sell Volkswagens, the company has pledged to maintain quarterly incentives for dealerships even if sales aren’t occurring. They are also providing “discretionary funds” to help dealers manage cash flow. Larger dealerships are reportedly set to receive substantial sums, though specific amounts are undisclosed.
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In addition to these measures, many dealers are rolling out enticing promotions. Some are providing $2,000 in “owner loyalty” credits to existing Volkswagen customers, while others are offering $2,500. Other promotions include $500 VISA debit cards and 125% of the NADA trade-in value for vehicles, with no questions asked. Low-interest financing options are also prevalent. As the month comes to a close, it’s likely many cars will be available for only $500 above invoice price.
For these reasons, now is an excellent time to consider purchasing a new vehicle.
Notably, these promotional offers extend to Volkswagen’s premium vehicles as well. The Golf R, for instance, is included in various deals. This model boasts 292 horsepower, a manual transmission, and incredible acceleration, reaching 0-60 mph in just 4.5 seconds, all while providing all-wheel drive performance. This is a unique opportunity to not only enjoy driving a powerful hatchback but also to support struggling dealerships. Purchasing a high-performance vehicle like the Golf R could be a rewarding choice in more ways than one.
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