CD Article: 2007 Volkswagen City Golf & Jetta

[johngenx]

Anyhow, do think they'll sell sh*tload of City Jettas regardless of the 2.0L.

And that's the point.  95% of the car buying public won't know/care about the age of the chassis.  All they will know is that they can get a fairly stylish VW with good equipment for about $20K.  I still wouldn't buy one, but I think there is a market for inexpensive VW products.  This is where they built their reputation, and I hope it's a move of VW to offer products that are competitive within pricing segments.  The Jetta line should always have going head to head with the Civic/3/Corolla products.  If they can't make the car competitively, what are they doing?  It's not like the Civic is manufactured in a third world nation using child labour for $1 a week.  It's made in Canada with non-union workers that earn union rates, maybe more.

Maybe you can make the argument that the Jetta is technologically superior to the Civic and offers more afety equipment.  Looking at the 06- Civic, I'm not sure that claim holds water.  Also, VW could have done as per Honda/Toyota and offered an entry level car for sub $20K to get people into the brand.

While I think the City Jetta/golf line is a cop out (yes, they should offer current products at a much different price) I also think that it might be signalling a change in thinking at VW that understands that are not trying to mass-market Bentleys.

[JSCC]

That's right $2000 price dropo on 2007 Beetles.
Lucky we dont' have any 06s left on our lot, phew! 

[Radshark]

Despite all the taxes, apparently Canadians are a pretty rich lot!   

If VW really wanted to sew up the Canadian market - all they would have to do is start offering VW's at the US MRSP at the current US/CDN exchange rate. 

US MRSP: 2007 Rabbit 4D - MT w. Alloy wheels: $17,390 US (vw.com)

CDN MRSP: 2007 Rabbit 5D MT alloys + conv package*: $22,100 CDN (vw.ca)

     *the extra options are standard in the US.

Using the current exchange rate of 0.89 US/CDN or 1.12 CDN/US we find the CDN MRSP should be: 19,477.  That's about $2,700 less than the current CDN price.

That's way too much of a premium for being Canadian - it should be about 0. 

Lets not forget, in addition to paying an extra $2,700 than Americans, we also get dinged for extra taxes and (if financed) extra interest on the difference (in ON about an extra 380 tax and probably an extra 400-600 in interest).  That's a total of about $3,500 CDN more for a $19,500 vehicle.

A rich lot indeed.

As for the resale value of your older Golf's and Jetta's .. perhaps you can sell it quick to one of the same people buying new cars at these inflated prices (not just VW's) then take a trip to the US and buy a new one.  Although I would recommend looking at North American built cars like the civic and matrix because there would be no 6.1% excise tax. 

Gotta love them rich, pumpkin-headed people - walking onto lots wondering how much per month for a shiny new car.    As long as there is a steady queue of them I will continue to spat at when offering the US MRSP (cash) for a new car here in Canada.  Seriously - you would think I was wrestling a meaty bone from a rabid animal offering them full US price.

I'll give manufacturers another month or so of happily gouging Canadians before the Competition Bureau recieves too many calls.  Maybe then they'll update the CDN pricelists. 

BTW - This is not an anti-VW rant - all automanufacturers are doing it right now - Toyota, who I think is the number one seller in Canada, and according to my calculations, being the worst. 

Happy Halloween,

R.

[JSCC]

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[sirAQUAMAN64]

http://www.globeauto.com/servlet/story/RTGAM.20061011.wh-buzz12/GAStory/specialGlobeAuto/

[PJungnitsch]

Had a good look at a City Golf at the local dealer, 5 spd, only option power locks/cruise.

Impressive, doesn't seem like a cheap car at all. Nice interior, seems well put together, doors and hatch thump shut nicely, all the nice touches of a proper Volkswagen.

They might do very well.

[JSCC]

12 Jettas and 6 Golfs came in during the initial launch, now we are down to 3-4 each.

[sirAQUAMAN64]

12 Jettas and 6 Golfs came in during the initial launch, now we are down to 3-4 each.

Any Jetta V intenders take the City Jetta specifically because of price difference? Or are most Jetta V buyers coming in sticking with the V? Impact/thoughts?

Any confusion in explaining the various models available to customers?

[JSCC]

Any Jetta V intenders take the City Jetta specifically because of price difference? Or are most Jetta V buyers coming in sticking with the V? Impact/thoughts?

Yes, a few, not many.
So far the consumers have been fairly educated.

We use the City Jetta as a Civic/Corolla/Mazda3 sedan competitor now.

City Golf vs Fit/Yaris/Versa.

Jetta V is left to fight the Accord/Camry/Mazda6 4 cylinders.

People who want the "old" design style instead of the Jetta V, made up thier minds before they came in the showroom.

Any confusion in explaining the various models available to customers?

A bit but not that much.
3 Golfs in total = 07 City Golf (~$15,000), 07 Euro Golf = Rabbit (~$20,000), 06 Golf TDI (~$25,000)!

[wing]

Yeah how do you explain it?

This is the City Jetta, it's the "OLD" Jetta they replaced it with this nice new Jetta, but you can still buy this old one and it's fairly cheap to buy! haha  Man I think this is retarded.... just lower the price on the Jetta and be done with it.

[sirAQUAMAN64]

I think as a salesperson it would be hard to explain. I don't know who in their right mind would buy an '06 Golf TDI for $28Gs, maybe salespeople? Regardless, gotta be much lower volume now than in the past for those.

If I were VW I wouldn't lower Jetta V prices much. The City Jetta will sell well which is pretty much a given, and the Jetta V outsells the Altima, Sonata, 6, G6, Accord, Fusion, etc (but no longer the Camry with its new redesign) even tho it's a smaller car than most with a relatively stiff price tag. And it's built in Mexico which means besides the New Beetle it's pretty much the only source of real profit. With TDI going away I think the price of option packages should be lowered tho as an incentive to get buyers to step up into higher more profitable trim levels.

I personally still think this stems from VW restricting European imports like Rabbit, and clearly dealers needing other product to sell when TDIs disappear.

But man, it must be weird to present so many options to walk-ins who have no idea what's available. I guess you'd ask the basics and go down from there? "Sedan or hatch... size requirement... gas or diesel..."

[JSCC]

Those who have the stong desire to get TDI will pay the money.
We'll just make the 06 Golf TDIs as demos if we can't sell them.

[wing]

They will sell I"m sure, nobody offers a diesel anymore except merc now?

[macsupra76]

New to forum. By the way great forum!

Quick question, I'm thinking or buying a City Golf or Jetta. Do u think the dealer will move a bit on price?
And what range: $500-$2000 ?
Thanks in advance

[sirAQUAMAN64]

New to forum. By the way great forum!

Quick question, I'm thinking or buying a City Golf or Jetta. Do u think the dealer will move a bit on price?
And what range: $500-$2000 ?
Thanks in advance

Definitely not $2,000, that's for sure. I would say under $1,000 too, more like maybe $600 tops if you're lucky. I don't know what invoice is but I can't see them having much margin, and I also can't see them having much difficulty moving City Jettas in particular, at least for the time being.

[Mr. Meow]

They will sell I"m sure, nobody offers a diesel anymore except merc now?

How short sighted of them. Every one in Europe has Diesels. Diesels are much better at saving fuel and long term reliability and they clean. In fact all manufacturers  have Diesel even Kia. The Canadain maket seems limit in that regard and you don't have to pay a premuim for it.
.

[BlackS40]

They're not short sighted Meow.  Volkswagen (and other manufacturers, I hope) are waiting for the modified, clean diesel to arrive.  That's actually looking ahead, if you ask me.

[JSCC]

They're not short sighted Meow.  Volkswagen (and other manufacturers, I hope) are waiting for the modified, clean diesel to arrive.  That's actually looking ahead, if you ask me.

You are correct. 

[JSCC]

New to forum. By the way great forum!

Quick question, I'm thinking or buying a City Golf or Jetta. Do u think the dealer will move a bit on price?
And what range: $500-$2000 ?
Thanks in advance

Aim for $300 and don't be shocked if you only get winter mats!
$2000? The total mark-up on a fully fully loaded City Jetta is not even $2000!

[JSCC]

The MKV Jetta 2.5 is tanking! 

90% of last 2 weeks showroom traffic is all for the Cities!
Stock is running low, we expect the Rabbit situation all over again, 2-4 month waiting period.