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Why would a car dealer be willing to sell a brand new car at 539 below invoice?????

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Old 04-09-2002, 06:31 PM
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Default Why would a car dealer be willing to sell a brand new car at 539 below invoice?????

My brother is looking for a 2002 VW GTI 1.8t. His dealer in Concord, Ca. Told him that he would sell him the car at 400 below invoice.
This is for a fully loaded GTI, it has everything. My brother didn't even need to negotiate that price. He just asked the dealer what would they be willing to do for him on the price. and that dealer came back with $19900 plus tax and fees. Why would the dealer be willing to do this????
Old 04-09-2002, 06:34 PM
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that's below MSRP
Old 04-09-2002, 06:49 PM
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Default No the invoice price on that car in California is $20,439. he got it for $19,900

The invoice price checks out at a few different online sites. That invioce price doesn't include the CD changer, but the dealer through that in for my brother too. The car has been on the lot for less than a week because he has been looking around and the car only has 22 miles on it and as far as he or his friend can tell it is %110 perfect. And he knows how to look at a car too. Am I missing something. What gives here. Almost sounds to good.
Old 04-09-2002, 07:01 PM
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Default Invoice isn't necessarily their true cost

VW dealers get a "holdback" of 2% of MSRP from the automaker. That reduces their vehicle cost below invoice price. There are also occasional secret and semi-secret factory-to-dealer incentives, rebates and allowances. Some of these deals are known to the sales people and some aren't. God only knows what the "real" cost of any vehicle to a particular dealer.
Old 04-09-2002, 07:05 PM
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Default Well put. God only knows. He may have a sales quota that is more important than the

profit on the car. Plus, he's got like 4 GTI 337's to see at MSRP or higher.

It sounds like an awesome deal, and VW has 0.9% financing right now.

I have been researching VW's in case my grand Avant plans fall thru.
Old 04-09-2002, 07:51 PM
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my dealer swears: no audi holdbacks
Old 04-09-2002, 08:01 PM
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Default Why don't you just ask?! This way it eliminates the guesswork and forces the dealer to be honest

with you.

What if it was in an accident during shipping? Or maybe there was some serious body work done to get it back in perfect shape?

Just ask. It can't hurt.
Old 04-09-2002, 08:05 PM
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Default The car has probably been on the lot for a very long time. (More)

I can buy a fully loaded 2002 A4 3.0 that is totally loaded (even Nav.), from my local dealer right now for $500 under invoice since the car was their first A4 when the 2002s were released. It has been on the lot sooo long that they just need to sell it since the pay for these cars immediately and if they can't sell it, they are slowly losing money.. Of course the deal would be great if I could afford the $40k....
Old 04-09-2002, 08:28 PM
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Default Is it really new, or an unwind ( contracted by dealer but not funded by bank )

I would be very very careful about this deal. Something is fishy. VW has only 2% holdback. It could they had a bunch, and have had a slow time moving them.
Old 04-09-2002, 08:31 PM
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Default True. No holdback on Audi. Only bonus program is to be in the top three CSI

( customer satisfaction index - JD Power survey ) spots for a given region each quarter.
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