Thought I would throw this out there to get peoples thoughts......

 

A common opinion here has been the % increase is down to extra profit / help bring down the waiting times. However, Its been mentioned to me by a couple of SEAT / VW reps that the new Octavia (and the associated offers) have really hurt their Golf / Leon sales....

 

The quality of the Golf interior (especially up specced) is still slightly higher, and the new Leon FR has upped it's game alongside the Octy so it is no longer the cheap 'n' nasty alternative with a VAG underpinning - However it's still the case that the Octy isnt carrying a badge *cost* premium, and the public are a lot more educated than before.

 

I got the vRS Estate diesel for 370 / mth (in the spec I wanted)..... A 1.6 Golf SE spec with a few extras to match the spec (less 18" rims) was £430 / mth with simiar numbers. The Leon 2.0 FR was closer (due to the 4.9% finance offer and free stereo / LED upgrade)..... the diesel Hatch (ST wasnt out) was £355 but with no 18" rims and less space... 

 

So, have VAG ordered the price increase to decrease the price gap between the Octy and the Golf, so that people will pay the extra for the badge?

Edited 20 December, 201312 yr by sniperpenguin

This story fits with yours...

 

http://www.ft.com/cms/s/0/c7b0d758-5dc9-11e3-95bd-00144feabdc0.html#axzz2o2Es1ZeA

Sorry I'm not up much on Golfs but is the 1.6 a petrol? if so that will probably have an impact as the residuals /FV are probaly lower than a diesel, so the buyer has top pay more? If the Golfs a diesel that my mis sorry.

 

Anyhoo

 

No doubt Skoda are chuffed selling loads of new Octavias, which beings what you've said above are in some significant numbers to new to skoda owners though at some stage I'm guessing (hoping) that they realise that to keep their existing customers they may have to do something as just a quick look on SUK's website a SE 1.4tsi manual hatch with no extras is more than I paid for my Blackline - they even want to charge £50 for a set of mats. I'm not going to risk an eye to see what a vRS is....

When I was thinking about changing cars, I looked at the Golf as well, both in GTI and GTD forms, both worked out on a PCP similar in price to the vRS as they have good residuals, so any extra cost on it was wiped out by a better residual and huge discounts offered by dealers, the standard S, SE etc models etc were more expensive than the GTI, vRS etc on a PCP as they carried poor residuals in comparison to the GTI etc, so it actually worked out better monthly to have a better car!  In the end as much as I liked the Golf, I went for a vRS estate, as nothing (in my opinion) can compete with the vRS on its 'do it all label' really, at the end of the day, it can be a sedate cruiser on the motorway, it can take us all on holiday, it can do the tip run and shopping and it can give me some fun when I want it to!

 

As for the Seat, never been interested in Seat, despite various people on here saying that it should always be considered, may be it should be considered but for me it wasn't even in the ball park.

IMO it's simple supply and demand.

 

If you are selling more than you can build/import to the UK you increase the price.

That way you can raise profits and still have a waiting list, even if it's shorter.

 

A long waiting list is no good.

It means you should be charging more as the completed sales are the same as if the waiting list is shorter.

The same number of cars are coming into the UK per week, just people are paying more and waiting less.

IMO it's simple supply and demand.

 

If you are selling more than you can build/import to the UK you increase the price.

That way you can raise profits and still have a waiting list, even if it's shorter.

 

A long waiting list is no good.

It means you should be charging more as the completed sales are the same as if the waiting list is shorter.

The same number of cars are coming into the UK per week, just people are paying more and waiting less.

Agree.

 

IMO The VRS, although a 'Skoda' competes well with its competitors. Having had a Leon FR (2005 Model) I can honestly say my Octy VRS's have been better. VW's are way too overpriced and under specced (PCP deals aside), look at what your getting for your £. Residuals etc make the PCP deals work in terms of monthly payments

VW waiting lists have been 9 months in the past!

Believe the GTI and GTD isn't far off that at the moment, when I was looking at the vRS and GTD dealer said minimum of 6 moths for the GTD possibly longer and said don't get too excited about it coming any time soon, so that was another reason I went for the vRS however that is looking like 6 months anyway!!!!

Skoda may be a part of the VAG group, but they operate as a seperate business entity with the people at the top being measured (and given bonuses) based upon profitability. The price increase will be down to increasing margins or maintaining them if manufacturing costs have increased. Secondary factors such as waiting lists may also be considered but ultimately it is all about company profitability. If VW are suffering with poor sales it will be up to VW management to make the necessary changes.