Team-BHP - VW to enter the used car market. EDIT "Das WeltAuto" Launched

Volkswagen makes an entry into the used car segment in India.

Volkswagen forays into used car business in India - The Economic Times

This should bode well for many. Something like a company-warranty on the used cars sold and this could make a very enticing proposition.

Wonder if ensuring the A.S.S. is competent figures in VW's plans for India.

How is this different from something like a Mahindra First Choice or a Maruti True Value?

Quoting certain pertinent points from the article:

Quote:

The company will sell both VW and non-VW branded cars under the pre-owned car business, Volkswagen Group Sales India Member of Board and Director Neeraj Garg told reporters here.

So my question here then would be whether VW will be able to give warranty on the cars of other brands?

Quote:

Asked about the investment involved in the new venture, he said it will be borne by the company's dealers, who would set up separate showrooms for the used cars.

Does this mean onus will be on the dealer to ensure quality? Will this model be similar to AutoTerrace of Honda (except that VW will also have other brands of cars?)

While I'm generally in favour of getting a good bargain in the used car market, regarding this one, I'm a little sceptical. It's also possible that I'm not aware of whether VW has successfully implemented this in other countries...

Quote:

Originally Posted by PhX (Post 2631631)

How is this different from something like a Mahindra First Choice or a Maruti True Value?

Its the same with higher expectations.
They mentioned that they would open separate showrooms for this, as long as they are opened by registered VW dealers and not the Used Car mafia that runs everywhere (Like Mahindra First Choice), it has good prospects.

Though I would have really wanted for them to only sell VW used cars, it would have given them more credibility like Honda Auto Terrace.

This is just a news article. More explicit details should not be expected. VW will make a good advertising campaign for this thing I guess. Just wait for an official statement from VW. But it all points to the fact that VW is very serious about the Indian market unlike some other car manufacturers.

Quote:

Originally Posted by mjumrani (Post 2639779)

Though I would have really wanted for them to only sell VW used cars, it would have given them more credibility like Honda Auto Terrace.

Actually, the other day at Linkway Honda, Andheri Mumbai, I think I saw a Fiat Palio Stile for sale at Auto Terrace.

i sincerely hope that they succeed in this initiative. almost everybody i know has had bad experience with the used car dealers and there is a huge opportunity in that area for companies like VW. they would really need to differentiate themselves and come up with something that will ensure peace of mind to the customer and ensure the customer that they are not being cheated; such as - a certificate of genuine mileage, all cars sold would come up with service history, extended warranty, certificate of car being accident free, etc.

Quote:

Originally Posted by stormsearcher (Post 2640144)

How long has volkswagen been in India? Isnt it a bit early for a used car market? I mean their oldest car must be 3 yrs old.

Jetta and Passat have been around longer than that, no?

EDIT: you are right, VW India was formed in 2007. But the report says that they'll sell other brands too, so it doesn't matter :-)

Quote:

Originally Posted by Saanil (Post 2639803)

Just wait for an official statement from VW.

Just to confirm : The ET Report is based on an official statement from VW. 3 - 4 showrooms are apparently going live soon in the metros. They will be selling non-VW cars also (primarily trade-ins).

Remember, in most transactions, the profit margin on a used car is far more than on a new car. VW dealers will welcome this initiative.

Quote:

German carmaker Volkswagen will have 8-10 used dealers by the end of this year, a top company official said today.

"It is a global plan for us. It's called Das Wealth Auto. This is what we have announced at the Auto Expo on January 5 that we are going to bring Das Wealth Auto into the country and start the pilot by the Q2 of this calendar year," Neeraj Garg, Director, Volkswagen Passenger Cars, India told reporters here.

"By the end of this year possibly, we will have around eight to ten dealers on a pilot-basis," Garg said.

As the pilot project of the business model succeeds, "We will expand to all the dealerships in the country," he said.

The dealers in the pilot project will come up in big towns, Tier 1 and Tier 2 towns.

"It is a well-known fact that customers do not have a disciplined used cars sales process. It is speculated that the number of used car transactions are equal to the number of new car transactions," he said.

Asked if these dealers would take only makes from Volkswagen, Garg said, "Not necessarily. I might take any car from the customer. We will upgrade the car to good quality levels."

Garg was here to introduce Volkswagen's IPL Edition II of Polo and Vento.

Source

Quote:

Originally Posted by Warwithwheels (Post 2735392)

"It is a well-known fact that customers do not have a disciplined used cars sales process. It is speculated that the number of used car transactions are equal to the number of new car transactions," he said.

This is good news, the used car market needs to get better and healthier, like the way its in the US or Europe. One would not think twice before buying a used car in the US, but its a nightmare doing the same in India.

TrueValue and the likes of Mahindra aren't helping much. TrueValue is expensive and there have been negative cases of Mahindra.

The news report says they would be dealing with all brands, same is the case with Toyota, which has not had enough traction (Welcome to Toyota U Trust), probably because of cost, hopefully VW will bring in healthy competition, possibly good times for used car buyers in future.

Carmakers getting into the "certified" used market is always great news. In this case the new dealerships could possibly stock all the VW AG cars. Skodas and Audis along with Polos, Ventos and everything else?

Quote:

Originally Posted by drmohitg (Post 2631377)

This is great news. Lets wait and see what sort of premium VW asks for in exchange for giving a warranty. I would love to own a used Passat at 12-15L with a 2-3 year VW warranty/service package.

Yes, we all know how you "bought" the Jetta and the Vento with the help of all of us here :D:uncontrol

Quote:

Originally Posted by noopster (Post 2736087)

Yes, we all know how you "bought" the Jetta and the Vento with the help of all of us here :D:uncontrol

Well its the thought that counts lol:. The next car in my garage to be changed is the Innova. Lets see if its replaced by the Fortuner or the Q3.

But on a serious note the biggest worry behind buying european cars is the service costs. If VW can give us a certified used car then why not?