Filed under: Car Buying, Volkswagen
Volkswagen offering 0% financing on all 2008 models
Volkswagen typically shies away from massive rebates, but tough sledding on the sales floor had led the German automaker to take drastic measures. All 2008 models can be had with 0% financing for a limited time, which should help VW dealers clear inventory before the '09 models arrive. The 0% deals vary in duration depending on the model, with most models receiving the special financing for 60 months. You can even get a GTI interest free for five years.
Almost every automaker is breaking the bank with incentives to keep declining sales and increased inventories in check. VW is one of the few automakers that fared fairly well in August sales, so something as drastic as 0% financing is a bit of a surprise. Given that the competition is doing it, though, the German automaker may just be keeping up with the Joneses. Thanks for the tip, Jay!
[Source: Volkswagen]
Reader Comments (Page 1 of 1)
CDN Crockett 9:03AM (9/04/2008)
Time to go shoppin'!!!
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Omer 9:22AM (9/04/2008)
this is a good deal actually but I wonder does this deal void any dealer rebates or cashback money offer??? still if you can get the car dealer invoice and 0% APR that not bad at all.
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zamafir 10:04AM (9/04/2008)
It didn't before, why would it now?
Jay 9:24AM (9/04/2008)
Maybe they're just now making a big push on these incentives (and maybe they're even better now), but they've been on the VW web site for a while now. I remember seeing the 0%/60 on the GTI several weeks ago.... Still, it's a very tempting deal.
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John Johnson 9:34AM (9/04/2008)
August sales were good because they've had 0% since then. I traded my Rabbit for a GTI and my payments only went up $17/mo (0%/72months compared to 4.9%/60mos). So at the end of the loan, I'll be paying $4000 more for the GTI, which is worth $8000 more. A fair deal, if I say so.
Most dealers will also go very close to invoice to move the 08s, so if you want a VW, now is the time!
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Michael Sliczniak 3:27PM (9/04/2008)
They will do more than approach invoice, they will go under. I have great credit and a few years back VW also had 0% before the new model year type deal. One dealer would not budge on price to under invoice + $200 on a Golf, but I dealt with a bunch of other dealerships until I found a fleet sales guy at another one that offered me 200 below invoice. I checked it out and due to some scratches on a hub cap and inside on the center console I was given another $75 off. Then the finance guy gave yet another $75 off to cover the sales tax difference (I had to go 100 miles out of the way for the car). So I got it for $350 under invoice.
mybora99 9:40AM (9/04/2008)
They offerred the same 0% on certain models, including the GTI in August as well. That's the reason why they did okay. In aint cause of that hideous new Tigaun that's for sure.
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Rick 11:04AM (9/04/2008)
The Tiguan is hot, that's for sure.
Sean 10:06AM (9/04/2008)
You've been able to get an 08 GTI since July for 0% for 60 months with approved credit.
Of course, I had just taken delivery of one 3 days earlier.
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Braden 10:24AM (9/04/2008)
FWIW, the 0% deals don't apply to R32s, or they do but only for 36mo IIRC. (My credit is fantastic so that wasn't the problem.)
This was back at the end of May though... But I still doubt they'd give you an R32 for 0% @ 60mos.
There is supposedly $2k dealer cashback for using VW Finance though, so keep that in mind when you're looking at your final price.
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John Johnson 10:59AM (9/04/2008)
Seeing as how VW has only sold 2,700 R32s, they're pretty eager to sell them. I've seen them going recently for $27k, so that more than makes up for the financing difference.
IowaSuby 10:26AM (9/04/2008)
I'm just waiting for the obligatory Autoblog "VW has reliablity issues comment" someone's going to post it, you just watch.
Good deal on financing, interest adding to your payments is a drag on finances IMO.
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why not the LS2LS7? 11:22AM (9/04/2008)
metaposts like this are really boring.
Why don't you just switch to "first before the ..." instead?
I remember back when autoblog had people who discussed cars instead of the politics of posting.
IowaSuby 12:38PM (9/04/2008)
I'm as tired of people posting "X cars are unreliable" as you are. I thought it was funny that I posted, then the next post after me was someone saying VW is unreliable. I got a chuckle, sorry you didn't.
Anyway, it's 2008 not 1992, manufacturers change things every year, it' too bad people are stuck in the past and can't drive a modern VW. Of course they have problems, all cars have problems, lemons are made, but for the most part, any new car you buy will be reliable. Sorry I have to keep posting this over and over but good grief, people won't give the Audi/VW reliability issue a rest. I'd start posting the same in the GM, Ford or Chrysler posts as well but that would be a full time job. I've owned many Audi and VW cars with no issues at all.
justin 1:57PM (9/04/2008)
I have three people at work with Passat's, all plan to sell after warranty is up.
Luckily their dealership has free loaners....
IowaSuby 2:47PM (9/04/2008)
What's wrong with the Passats that they want to sell them? You gave no information. I could guess they don't like the color or leather interior? Or is there some mechanical issue they don't like?
For instance, I had a 1994 Dodge Intrepid, it was a great car except the Auto Climate Control had a terrible engineering defect. I drove the car until the warranty was out and then ditched it. Nothing else broke on the car, it never left me stranded, I was just tired of having the entire HVAC unit replaced every summer for 5 years (under warranty no cost to me). I wouldn't call that car unreliable, because it got me from point A to point B for 5 years and 60K+ miles, never had a mechanical issue with it.
People tend to go nuts over little things. I was reading in the VWvortex forums someone was mad because the sunroof screen latch broke on their A3 and they paid a lot of money for their car and this shouldn't do that blah blah blah he's so unhappy with Audi. Uh...get a grip, it's a $10 part that is covered under warranty because yes, mine broke too. See my point?
Vince 10:35AM (9/04/2008)
This provides no additional incentive to those who prefer to pay with cash.
Of course cash buyers are pretty conservative in the first place and don't like to be taken by the poor dealer service and crappy reliability. They'll be avoiding VW anyway.
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DKB_SATX 11:04AM (9/04/2008)
Umm... anyone who would prefer to pay with cash instead of buy the car at 0% for 60 months didn't make their cash by being smart. If you're irrationally risk-averse and paranoid that you're going to lose your source of income to make the payments, put the rest of the cash in an interest-bearing account (CD, savings, money-market, t-bills, something!) and buy the car with the minimum down, and earn interest on the money you'd want to give to the car dealer.
why not the LS2LS7? 11:25AM (9/04/2008)
I am sure VW has incentives for cash buyers too, they just aren't publicizing them because it's the on credit (i.e. is on the borderline of affording the car) buyer who is the one who won't walk into a dealership currently.
Go in and make a deal.
DKB_SATX 12:32PM (9/04/2008)
LS2LS7 made a point that I ignored when I posted. I was just thinking about the article itself, which is talking about 0% financing. Now, if they offer low/0 financing *OR* a fat cash incentive, often it's cheaper to take the cash incentive EVEN if you are borrowing money to buy the car. If you're able to pay cash, you have to do the math to see which saves you more in the long run, but in the absence of cash incentives (or if the cash incentives aren't exclusive of the 0%) you're better off with 0% (or any rate lower than you can make on a CD) than paying cash.