pw-man

OK, trying to work a deal on my 2011, which just came in from order... I'll share the real #'s later, but need to understand a concept.

Without asking for anything, I received a price from my dealer BELOW MSRP (not sharing the # just to keep on topic, for now).

I also have through my employer access to the Audi Supplier program. Which gives me 6% of MSRP. (I am assuming that it is a kick-back to the dealer and the dealer will be made whole at some % of the discount received).

Shouldn't I now be able to negotiate a price that incorporates both the Supplier program discount, the original discount the dealer quoted me and, of course, my loyalty rebate...

So the calculation would be:

MSRP - Supplier Program Discount - Discount from Dealer - Loyalty + Destination, plates, etc = price

The dealer is telling me that the if I use the supplier program I can not have the discount that he gave me (before I mentioned the supplier program).

I disagree because I believe that if he is making money on the price with the discount he is giving me, he is making even more with the kickback / reimbursement that Audi will be giving him for the supplier program. (Net-net, the supplier program puts money in his pocket, without taking it out of mine).

Is my assumption incorrect? Or am I being to strict on my interpretation of the process?

Thanks!!!!

Patrick

2011Q7TDI

you'll prob be lucky to get one or the other, but loyalty should be on top of which ever one they give u. i didnt mention the loyalty thing until AFTER i negotiated my buying price.

pw-man

Same here. He gave me a price, and I said sounds good, now I have the loyalty, let's subtract that discount (6% off MSRP) and then he said... you can only have one of the other... and I thought bollocks. ;-)

AFAIK, there is no written rule that says that I can't so ... :-)

So now I need to decide how to call the bluff... Call AoA and ask them straight up or ....

myriadshalaks

There is 6% markup on audi. There is no kickback for your supplier program, whatever that would mean. the dealer agrees to do the supplier program because presumably they will sell several cars at a prenegotiated price, not just one.

The loyalty won't work with the supplier program because you, an individual, are the one who's loyal, but it's your company who's buying the car through the program.

You could negotiate a price with the dealer then add loyalty, but it likely won't be better than invoice even with the loyalty, so you're better off with the supplier program.

I am a dealer. I stand to make no money from you. I'm just telling you how it is. There isn't a ton of mark up on these cars. And there's only 3-4k real profit in even the most expensive audi.

So don't get greedy. Your dealer is being generous with the supplier program. Take it and enjoy your car.

myriadshalaks

There is 6% markup on audi. There is no kickback for your supplier program, whatever that would mean. the dealer agrees to do the supplier program because presumably they will sell several cars at a prenegotiated price, not just one.

The loyalty won't work with the supplier program because you, an individual, are the one who's loyal, but it's your company who's buying the car through the program. The paperwork wouldn't be right for audi of north america to accept it and pay the dealer.

You could negotiate a price with the dealer then add loyalty, but it likely won't be better than invoice even with the loyalty, so you're better off with the supplier program. A typical discount on Audi is 2-3 percent. 4% off is employee pricing. Loyalty costs the dealer nothing, so it doesn't matter if you add it to any deal. But there are rules -- see above.

I am a dealer. I stand to make no money from you. I'm just telling you how it is. There isn't a ton of mark up on these cars. And there's only 3-4k real profit in even the most expensive audi.

So don't get greedy. Your dealer is being generous with the supplier program. Take it and enjoy your car.

pw-man

Hmm. interesting, from the research I have done, there is a 50-50 split on the supplier program.
Interesting, I spoke with AoA last night and they confirmed differently, the loyalty program doesn't cost the dealer anything and can be used with the supplier program (at least the one I have)

I disagree, from what I have been able to research, the supplier program only costs half to the dealer, so, just using it one would only getting a 3% discount off MSRP, so there would still be 4% profit for the dealer, which is significant.

myriadshalaks

I am not familiar with your supplier program. the stuff i have done with companies always involves the company buying the car, fleet deals. Your supplier program must be more like USAA pre-discount. But there is nothing back to the dealer on those. We just agree to sell the car at a percent over invoice to their customers, and they promise to direct them to us.

who does the dealer split the discount with? Does your company pay it? Does Audi? Someone has to.

But if what you say is true, then there should be no problem giving you loyalty and your supplier discount.

Who is the split with with

pw-man

As far as I know it is with AoA, the supplier program is with Audi Corporate, so my understanding is that the 50-50 split is between AoA and the dealer.

My company (for example) doesn't get involved with the deal at all, just passes along the program.

myriadshalaks

if that is correct, you should be able to get both the supplier discount and your loyalty. if that dealer won't do it, i will, and i'll pick up shipping to you.

Reggie

I am buying a Q5 tomorrow (ordered in July) I got the 6% supplier discount and the 1.5% Loyalty discount. No questions or problems. I did not try or plan to ask for anymore off as this is a fantastic deal IMHO.

I also plan to get the ACNA(Audi Club North America) US$500 discount.

You need to find a better dealer.