onthebeam

I'm about to order my A7 and have seen quite good pricing from three dealers, having received bids from six. One of these dealers is throwing a curveball with charges I have never heard of for an Audi purchase in Florida.

Each dealership charges dealer prep fees ranging from $579-$699. Even though, like many, I don't like this, I accept it, figure it into my negotiations and pay it.

But this one dealer is also trying to add ANOTHER $596.50 on top of the dealer fee. One charge is "Florida Gulf Coast DAG" advertising fee charged by Audi of $401.50 and the other is "Preparation and Inspection" of $195.00.

I know there are ad fees for some car companies in some parts of the U.S. However, NO other Audi dealer has brought these up or tried to tack these on top of their own dealer prep fee. Paying another $195 that is supposedly an Audi charge to its dealer for Preparation and Inspection smells a bit funny to me, especially on top of $600-$700 dealer prep that's supposed to cover that and more.

Has anyone paid these in Florida, or anywhere else??

uberwgn

This is the result of the consumer wanting to buy cars at "invoice". The dealer has to figure out a way to pad the bill so they can keep the lights on. Only you can decide what to bear when it comes to these add-ons... many dealerships are doing it, it's not exclusive to Audi or to your region.

MKDFW

Agree on a price that includes ALL dealer charges, except Florida taxes and title fee. Invoice price is just a mirage. With monthly, quarterly, and annual incentives, hold-backs etc.,it is almost impossible to determine the true dealer cost of a vehicle.

snagitseven

Your first sentence is true enough - the net price is the real price regardless of how you get there. However, unlike many other brands, Audi does not use "hold-backs" which are usually rebates associated by a specific amount per car. Audi may provide various dealer incentives that are general in nature such as meeting quotas, customer ratings and such but these are not tied to individual cars sold and would be reported as a separate income line item on the dealer's cash flow statements.

snagitseven

A dealer can try and charge any extras they want and call it anything they wish. Some throw these kinds of things against the wall to see if they stick, often to have a higher starting point to negotiate from. (Audi does not get involved in what extras a dealer may charge or discounts the dealer will agree to). Bottom line is to negotiate to the best net price you can by working with several dealers if possible. If trading in, watch out for the low ball on the new car while they low ball the trade. Negotiate the two transactions separately.

fkaufman

Legit charges? In the car retail business? Whom are you kidding?

Horse trading methodology carried over into that business at the outset and it is still hanging on.

Ignore what the different charges are called or their amount. Concern yourself only with the net total payable at the end!

onthebeam

Appreciate the horse trading advice. However, that's not what I'm writing about in this thread. Very experienced buying cars and familiar with the games dealers play re so-called invoice pricing, holdbacks, quarterly and annual incentives, etc. (True Audi doesn't have traditional holdback but they rebate dealers in other ways.)

Yet, although many will appreciate the helpful advice above, and thank you for it, I wasn't asking how to negotiate on buying a car. Very comfortable in that area.

What I am asking is if anyone is familiar with these specific charges that are supposedly from Audi to the dealer. The dealer says that the attached image is Audi's invoice to them with the charges I mention in my first post above.

However I've talked with a six dealers and nobody else mentions these fees claimed to be part of the Audi invoice to the dealer. You can see them listed on the bottom two lines below the destination charge.

fkaufman

I got your point. This thread has a lot of info on your specific questions: https://forums.audiworld.com/archive...t-2826791.html

snagitseven

Are those dealer advertising and prep charges shown on the dealer's actual invoice legit? Yes, they are. Are they always passed on to buyers? In my experience, only the prep is typically presented as a charge the buyer needs to pay. Advertising is not although some dealers may try to do so. I suspect this charge is something that may be rebated back to the dealer by Audi in some fashion in part or in full based on performance and/or local co-op advertising expense. I feel if a dealer were to try and pass on the cost per car the salesperson's commission, their light bill or the donuts in the waiting room, it would amount to the same thing. At the same time, no different than Home Depot or Best Buy, a car dealer has to make a profit or the donuts and the lights go away.

moosehead1

Me thinks you have answered your own question. It's all fluff.

Go elsewhere unless their vehicle price is far enough below invoice to still net below the other six dealers bids.