Beat high car prices the VW way
SINGAPORE - Put off by high car prices? Buying a used car might be the answer, if you ask Volkswagen Group Singapore.
Last night the company launched Das WeltAuto, a used car division that has opened its doors after nine months of preparation.
VW operates Das WeltAuto (German for “the world car”) in 24 countries worldwide, and the Singapore branch is the first in ASEAN. The division deals exclusively in Volkswagens.
Volkswagen sees the business as a way to reach more customers, given the high prices of new cars these days. “Not everyone can afford a new car under the current COE situation,” says Steffen Schwarz, the managing director of Volkswagen Group Singapore.
At Das WeltAuto, a Volkswagen Polo just under four years old would cost less than $70,000, estimates general manager Eric Chua.
Volkswagen’s website currently lists a new Polo for $125,800 with COE.
Even newer cars give buyers the chance to save tens of thousands. At last night’s launch an eight month-old Passat 1.8 TSI was priced at $141,800, versus $179,300 for a new one now.
Every car sold there has a minimum of 12 months’ warranty, and Mr Chua says that Das WeltAuto certifies the mileage and service history of each one.
All of the division’s stock is younger than four years with less than 90,000km on the odometer.
The cars are mostly harvested from trade-ins or Volkswagen’s own fleet of vehicles. “We can really cherry-pick our cars,” says Mr Chua.
VW’s new car operations see around 100 trade-ins a month, while the 7,225 square-foot Das WeltAuto showroom can display around 30 vehicles at a time.
Before going on sale the cars undergo a 115-point mechanical check and are then sent for servicing. They are also groomed, and cosmetic touch-up work is done if necessary.
Customers have to pay a premium for the scrutiny and rectification, though. Mr Chua estimates that Das WeltAuto’s cars cost $5,000 to $6,000 more than comparable VWs sold elsewhere.
“We will never be the cheapest in the market, but the premium paid by customers benefits them in the end,” says Mr Chua. He adds that VW’s ownership of Das WeltAuto means that various departments can work closely to keep out lemons.
If a trade-in has no service history with VW Singapore’s workshop, for instance, it doesn’t make it into Das WeltAuto’s inventory.
Indeed, such is the company’s confidence in its cars that this weekend it intends to challenge customers to try and tell two of its used cars from a pair of new ones.
The company has also launched its website, and has planned family-friendly activities at the showroom for its opening weekend.
One of these will be an Easter Egg hunt, although the real hope is that customers will be equally in the mood to hunt for bargains.
