MY06 Price Drop
04-05-2006, 10:34 AM
#4
Depends what you want, inventory supply, and whether AoA feels they need to subvent.
If you're after a specific car, then do it sooner rather than later, because the really loaded cars and the oddly optioned cars are the last ones on the lot. That might cost you a bit, but you'll get something you really want. Even though the overall discount may be larger if you wait, you may end up with a bunch of stuff you don't want in the first place, thus driving up the baseline cost.
If AoA decides to subvent in some fashion (could be a rebate, could be special finance or lease rates), they usually do so about a month or two before the next model year comes out. The point of subventing is to move the bulk of inventory, not the strangglers. So waiting until the new model comes out is usually a bad idea unless inventory was was tight and no subventing occurred anyway.
The rest depends on your dealer and your negotiating ability. Remember that you are buying a car and not a deal. You'll have to live with the car (and the dealer) long after the memory of the negotiation fades away.
BTW, cash is not the way to get the best deal. It gives the dealer only one profit point, instead of being able to make a little on the financing (which may be a subvented rate you can't get outside of the dealer), and thus cut you more of a deal on the car itself. Same goes for leasing. If the interest rate on a purchase or lease is below the returns you can see by investing that money you would otherwise spend on the car, why not make money rather than spend it on a depreciating asset? Of course this applies only if the rates are subvented and you like to make money;-)
If AoA decides to subvent in some fashion (could be a rebate, could be special finance or lease rates), they usually do so about a month or two before the next model year comes out. The point of subventing is to move the bulk of inventory, not the strangglers. So waiting until the new model comes out is usually a bad idea unless inventory was was tight and no subventing occurred anyway.
The rest depends on your dealer and your negotiating ability. Remember that you are buying a car and not a deal. You'll have to live with the car (and the dealer) long after the memory of the negotiation fades away.
BTW, cash is not the way to get the best deal. It gives the dealer only one profit point, instead of being able to make a little on the financing (which may be a subvented rate you can't get outside of the dealer), and thus cut you more of a deal on the car itself. Same goes for leasing. If the interest rate on a purchase or lease is below the returns you can see by investing that money you would otherwise spend on the car, why not make money rather than spend it on a depreciating asset? Of course this applies only if the rates are subvented and you like to make money;-)
04-05-2006, 10:53 AM
#5
AudiWorld Senior Member
Thread Starter
Re: Depends what you want, inventory supply, and whether AoA feels they need to subvent.
I am always open to do a finance deal. Of course i will pay it off within a month but if it helps me get a better price i will do it.
04-05-2006, 01:40 PM
#7
So, when does the window open for subventing, and is the end of the quarter (June 30) too late?
The end of quarter is when a dealer faces the most financial pressure from his floor plan to move metal, no?
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04-05-2006, 02:04 PM
#8
It's never a sure thing and dealers don't know until around the 6th/8th of
each month whether subventing will be on the plate - and the end date is whenever AoA decides to stop the program - the shortest I've seen is 2 weeks. Usually if an old model is to be subvented, it is started 2 to 3 months before the new model arrives - and ends several weeks before the new model hits dealer showrooms - so as to prevent cross-shopping by customers. It's up to the dealer to move the metal while deals are good. The exact terms can change weekly as inventory and inventory matrix changes.
For example, AoA says to themselves, "We've got a lot of QTR 3.2 sedans on the lots. Let's try this program for two weeks and see how it does." And later they might say, "We've got some V8s we need to move - but not many. Let's see if applying a small incentive will work."
It may work great, or they may find they need to apply more incentives. The thing is if the deal sounds good, don't second guess yourself because you may miss out on the car or deal. It's a very fluid situation.
Some incentives are customer direct like interest rates, money factors and customer cash back. In other cases it's trunk money that belongs to the dealer, and the dealer can decide how much they wish to pass along to the customer.
For example, AoA says to themselves, "We've got a lot of QTR 3.2 sedans on the lots. Let's try this program for two weeks and see how it does." And later they might say, "We've got some V8s we need to move - but not many. Let's see if applying a small incentive will work."
It may work great, or they may find they need to apply more incentives. The thing is if the deal sounds good, don't second guess yourself because you may miss out on the car or deal. It's a very fluid situation.
Some incentives are customer direct like interest rates, money factors and customer cash back. In other cases it's trunk money that belongs to the dealer, and the dealer can decide how much they wish to pass along to the customer.
04-05-2006, 02:45 PM
#10
AudiWorld Senior Member
Thread Starter
Re: Depends what you want, inventory supply, and whether AoA feels they need to subvent.
Can you give me any idea about how much a price might drop, a range perhaps. Are we talking, 1k, 2k, 5k, 10k? on a 50k A6?