Summary
- Volkswagen dealers are marking up the ID Buzz as much as $20,000 over the sticker price
- Former VW Americas CEO warned dealers not to add markups, but they are still doing it
- Dealerships are adding markups of up to $15,000, going against customer expectations
- The high price and dealer markups have caused backlash from potential buyers
- Volkswagen is facing financial struggles and cannot afford markups on the ID Buzz, which was supposed to revitalize its lineup.
Article
Volkswagen Dealers Marking Up the ID Buzz
Dealers for Volkswagen are marking up the ID Buzz by as much as $20,000 over the sticker price, despite the previous instructions from the brand’s CEO not to have markups on the vehicle. This high markup on VW’s most important halo product in decades is causing consumers to be priced out of the market for the electric people hauler.
Dealership Practices and Markups
Multiple accounts have surfaced of dealerships adding markups to the ID Buzz in various regions. From California to Illinois, dealerships are quoting prices up to $15,000 above the sticker price for the highly anticipated vehicle. This trend of markups of $10,000 or more seems to be becoming the standard for VW’s dealerships.
Nostalgic Appeal of the ID Buzz
The ID Buzz was designed to evoke emotions in customers, especially those with a nostalgic connection to VW’s iconic bus. The vehicle garnered excitement from consumers looking for a modern twist on a classic design. However, the thrill of owning an ID Buzz has been dampened by the high price point set by Volkswagen.
Pricing and Customer Reactions
Consumers were shocked by the pricing of the ID Buzz, with the base model starting at $59,995 before destination fees and going up to $69,995 for the higher trim levels. The limited range of 231 miles on a full charge also disappointed potential buyers who were eagerly awaiting the release of the electric minivan.
Volkswagen’s Financial Situation
Volkswagen is facing pressure from global EV brands and struggling to meet sales expectations with its ID family of vehicles. The ID Buzz was intended to breathe new life into VW’s lineup and attract customers to the brand. The markup situation poses a risk for the automaker, as increased prices may deter buyers and hurt sales of the flagship product.
The Future of the ID Buzz
The ID Buzz finds itself in a challenging situation, with high markups deterring potential buyers and affecting Volkswagen’s sales strategy. The German automaker needs to address the issue promptly, as failure to do so could result in the loss of sales and damage to the reputation of the brand. Volkswagen must take decisive action to prevent dealer markups from jeopardizing the success of the ID Buzz in the market.
Read the full article here
