By Park Jin-hai
Imported carmakers, involved in multiple recent misfortunes here, ranging from an emission cheating scandal and vehicle fires, have upped their sales promotions.
As the nation’s largest carmaker, Hyundai, is set to launch its first luxury sedan, the EQ900, here next month, imported carmakers are making a last ditch effort to fight for market share over the remaining months of the year.
Volkswagen, whose October sales dropped more than 60 percent from a month earlier, has been making the most aggressive sales promotions.
Customers think this is a good time to purchase a car.
“I have waited for about ten minutes, because all dealers in the shop were talking with customers,” said Kim Yeon-seo, who signed a contract to purchase a Beetle, at a Volkswagen showroom in southern Seoul, crowded with customers.
“The carmaker is giving big discounts at the moment, and I think it is good time to buy a car at cheaper price. Say, ten years from now, I think the carmaker will be recovered from the recent turmoil, with its vehicle prices going up again,” she added.
The German carmaker, together with Volkswagen Financial Services Korea, is giving zero interest rate car loans to all its customers regardless of models they purchase this month. Customers can also choose to have 17.72 million won discount on cash payments.
For 17 models including popular Tiguan and Golf models, customers can have 60-month installment plan with zero interest. For the Zeta, Touareg, and Phaeton, there is no down payment either.
Volkswagen group’s luxury vehicle brand Audi Korea is offering a deferred installment payment for its A3 sedan, while allowing customers to lease cars for a 59,853 won monthly payment. The A6 has a 36-month interest free installments loans.
BMW, whose CEO had to apologize for vehicle fires due to defects, is also heavily promoting its cars.
Customers, who have an accident within three years of purchase, where the repair costs exceed 30 percent of the vehicle price, can exchange the damaged car for a new one.
Mercedes-Benz is running a Star Trade-in service, where a current owner, selling the car through its certified second-hand car dealer StarClass and repurchasing another Mercedes car, can have a discount.
However, some customers say that imported carmakers are engrossed in selling new cars and not paying as much attention to existing owners.
Volkswagen vehicle’s on-line social clubs see customers postings complaining that the carmaker is holding an aggressive sales promotion, but is not mentioning how to compensate the owners of the models involved in the emission scandal.
“Except for BMW’s program that offers a free car exchange within three years of purchase, all of the programs are looking to new customers,” complained a netzen, declining to be named.