Posted On: January 6, 2005, 2:34 pm CST

Posted By: PB

VW and Nationwide should call Yamaha! Yamaha was the first innovator of such a scheme. It was very complex and they did a lot of research, development and got approvals from insurance departments across the nation. Yamaha paid the insurance premiums and DID NOT adjust the MSRP or "negotiated" price on each sale. A buyer could decline the insurance, but that did not get them any reduced price. Dealers are independent, do not offer the insurance and do not pay anything for it. The dealer can negotiate whatever price they want for the vehicle with a customer, and that even includes giving the customer the vehicle FREE (if the dealer wants to lose money). Young buyers were the attraction then, as are now in this case with VW. We in insurance know that this scheme is flawed and will not be successful. It will prove too expensive to VW and they will discontinue it quickly, I'm sure. Nationwide will not lose unless their rates for young drivers are already too low.