A4 (B8 Platform) Discussion Discussion forum for the B8 Audi A4 produced from 2008.5

Dealer Prep

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Old 11-28-2009, 10:46 PM
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Originally Posted by u2jrmw
I am reading that dealer prep is basically BS and shouldn't be paid, my salesguy is trying to hit me up for $200 as this.
No. At least not here in California. Find a dealer that won't pull it on you.
Old 11-29-2009, 05:13 AM
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Originally Posted by AofC_RR
PDI or Pre delivery inspection is separate from the PORT PREP charge on the dealer invoice. PDI is never charged to the customer. Sorry Port Prep is legit and on every invoice. I did a friends and family deal today, that's $300 over invoice, the guy actually called his contact at Audi to verify the Port Prep and regional advertising charge on the invoice because he didn't think he should have to pay them, they are REAL. Pay profit and be a supporter of capitalism. This isn't a socialist republic. You don't work for free neither do we. Look at things from a dealer's point of view. You have a multi million dollar facility, staff, millions in inventory. Your sales staff is there 12 hours a day hustling to make a living that ultimately translates to about $8 an hour after taxes.
Would you want to go for joyrides all day in cars with strangers, answer ridiculous questions, bend over backwards for people all day, have to argue with somebody to make a living and at the end of the day be glad you made $150 for what was in reality about a week's worth of work?
Nor can you complain your dealer doesn't provide Audi loaners when you want to buy things for cost or less.
Anyway I'll get down off my soapbox, oh and thank you TIME89 for posting up that thread. Always helps when it's been discussed before.
I've been buying Audis exclusively at Roger Beasley in Austin, Texas for 10 years and ordered my 2010 A4 there 5 or 6 weeks ago. I've developed good relationships with most of the folks who work there; one of the owners (the active partner), manager, sales manager, most of the sales folks, the mechanics, and service folks. They're a good group of people and I treat them like family (which isn't always a good thing)! LOL Their first offer was $500 over invoice and I good naturely argued them down to $300 over invoice; which means I guess they think I'm friends & family too! (grins)

But, one minor point of disagreement with Audi Brand Specialist guy here. When you sell the car to a buyer, you're not only making profit off the deal - youre investing in a person who will hopefully get his car serviced there (which is reimbursed by AOA) and buy many future cars there. So treat your customer politely and fairly and everyone benefits!
Old 12-01-2009, 10:10 AM
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Originally Posted by u2jrmw
How on earth would he be able to sell me the car for that much under invoice?
He can sell it for upwards of $3,000 below invoice because of factory holdback (I know Audi has 'no holdback', but VW pays it.) sales incentives, advetising co-op, payments for building look and layout, revenue bonds on the dealer land, sales contests, and cash to dealer for meeting specific sales objectives, like taking market share from BMW or Daimler.

There is typically only one person at a dealer who knows how much the store actually pays for the car. The invoice and the administrative fees tacked to it are a device used by dealers to a) cut the salesmans commission, and b) create an artifical floor for setting prices with clients.

I bought my car off the lot for $ 2,600 under invoice, the salemanager put $200 in the glovebox to put the sale on the board, and I put $ 135 in the salesmans pocket because his commission was squeezed to minimum on the deal. Everyone made money. If you pay more, you are making sailboat payments and paying country club fees for the dealer.
Old 12-01-2009, 10:25 AM
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Originally Posted by Moviela
I bought my car off the lot for $ 2,600 under invoice, the salemanager put $200 in the glovebox to put the sale on the board, and I put $ 135 in the salesmans pocket because his commission was squeezed to minimum on the deal. Everyone made money. If you pay more, you are making sailboat payments and paying country club fees for the dealer.
All of that presumes that the dealer will sell you the car at that price, regardless of whether he is still making money on the deal. You can stand on principle all you want about how much the dealer is really making and how you shouldn't pay more than $2,600 under invoice, but that doesn't mean the dealer will make that deal.

Perhaps on cars with a large surplus on lots, or with a dealer desperate for a sale you can play such hardball. But most dealers aren't going to sell a current-year car for $2,600 under invoice, no matter what negotiating tactics you employ.
Old 12-01-2009, 10:47 AM
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Originally Posted by Moviela
He can sell it for upwards of $3,000 below invoice because of factory holdback (I know Audi has 'no holdback', but VW pays it.) sales incentives, advetising co-op, payments for building look and layout, revenue bonds on the dealer land, sales contests, and cash to dealer for meeting specific sales objectives, like taking market share from BMW or Daimler.

There is typically only one person at a dealer who knows how much the store actually pays for the car. The invoice and the administrative fees tacked to it are a device used by dealers to a) cut the salesmans commission, and b) create an artifical floor for setting prices with clients.

I bought my car off the lot for $ 2,600 under invoice, the salemanager put $200 in the glovebox to put the sale on the board, and I put $ 135 in the salesmans pocket because his commission was squeezed to minimum on the deal. Everyone made money. If you pay more, you are making sailboat payments and paying country club fees for the dealer.
So everything I reads says there is no holdback on Audi. Are you saying this is not true? Can you point me to something that would help me understand that?
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