Negotiating on top of discount (Supplier discount, Microsoft employee)

[rs4dreams]

I've been considering ordering a 2013 S4. I've found that I'm eligible for a 6% discount (more precisely, (MSRP - destination fee) * .94 + destination fee). This puts me at a price within $500 of invoice as far as I can tell. I don't currently own an Audi so I won't easily be able to get one of those "frequent flyer" discounts. Does anyone have experience negotiating on top of such a discount (maybe even just Audicare for free or something like that), or will any attempts be fruitless? Thanks in advance.

[nicksena]

Originally Posted by rs4dreams

I've been considering ordering a 2013 S4. I've found that I'm eligible for a 6% discount (more precisely, (MSRP - destination fee) * .94 + destination fee). This puts me at a price within $500 of invoice as far as I can tell. I don't currently own an Audi so I won't easily be able to get one of those "frequent flyer" discounts.

Does anyone have experience negotiating on top of such a discount (maybe even just Audicare for free or something like that), or will any attempts be fruitless?

Thanks in advance.

Im trying to do the same exact thing right now, I'll let you know how I make out. I original did a carwoo submission and a few dealers contacted me about a 2012. I've since decided I want a 2013 and I've told a few dealers within the last 2 days. One of which already offered Invoice+$500, and said he can probably do Invoice+$500, and a third just asked how much over invoice do I need to make it happen. I'm trying to get the Audicare thrown in no crazy dealer fees and Ill be happy. The second guy already said no to the audicare and the other two havent responded yet, we'll see. If I were to get it, I would consider it a good deal.

[waffles]

dealer makes about $80-100 on audicare. So by asking for $500 over invoice with no fees and audicare thrown in, you are asking for ~$250 under invoice. doubt it's gonna happen.

[Carguy19]

Originally Posted by waffles

dealer makes about $80-100 on audicare. So by asking for $500 over invoice with no fees and audicare thrown in, you are asking for ~$250 under invoice. doubt it's gonna happen.

If you get a supplier price be happy you are getting the car for dead invoice.

dealers are not going to give you more then that off.

I managed an Audi dealer for the last 2 years.

PS- audicare has 30-80 markup from cost to retail and dealers are discouraged from discounting it because audi wants everyone to pay the same price for it. Thats why they dont mark it up.

[audi40]

The dealer gets half (3%) of the 6% supplier discount reimbursed by Audi so there is still room to negotiate - really just depends on finding the right dealer who's willing to work with you.

Personally, I've bought 2 Audi's in the last 4 years both using the supplier discount (+ owner loyalty on the 2nd one). In both cases, I put most of my negotiating effort into getting a fair trade-in value, rather than knocking more off the MSRP.

[primetime]

FWIW... I got supplier pricing + owner loyalty(comes off after taxes and fees) + another $250 + supercharged badges...

[sendmeone]

Are you going to lease or purchase the car?

If you are going to lease they can give you the car at invoice and hit you in the back-end. What you need to consider when leasing the car is obtaining the closes to invoice (preferably invoice); know your Residual and the Money Factor, these two things play a HUGE part on the negotiation and it varies month to month. Lastly, if you are going to purchase the car or even lease the car force them to give you the CALL BACK from the bank (this is the information they get from the financial institution which tells the bank what is the best rate they are offering) any points they put above that goes to the dealers pocket...some dealers say it is information they don't give away but it is your right and your personal information that they are showing you.

Just a little FYI, the current lease information for top credit tier for the month of MAY 2012 are:

S4 Sedan Premium Plus with 12k yearly: .00044 (Money Factor) and 56% (Residual)

S4 Sedan Prestige with 12k yearly: .00044 and 53%

Every tier of miles you go over or under increase your Residual 1% (10k yearly will be 54% residual versus 15k yearly would be 52%)

Hope this helps.

Side note: I have ALWAYS received the AUDI CARE at no additional cost, this you get from the Finance personnel, they are salesman just like the rest. Remember you always negotiate up from Invoice not down from MSRP.

Good Luck!

[Stereodude]

Originally Posted by sendmeone

Side note: I have ALWAYS received the AUDI CARE at no additional cost, this you get from the Finance personnel, they are salesman just like the rest.

This is because getting Audi Care on the car increases the residual on the car by an amount that basically offsets the cost of Audi Care.

[Pinkslip]

Originally Posted by audi40

The dealer gets half (3%) of the 6% supplier discount reimbursed by Audi so there is still room to negotiate - really just depends on finding the right dealer who's willing to work with you.

Personally, I've bought 2 Audi's in the last 4 years both using the supplier discount (+ owner loyalty on the 2nd one). In both cases, I put most of my negotiating effort into getting a fair trade-in value, rather than knocking more off the MSRP.

Dealers get reimbursed only 2% on supplier deals. It used to be 3% last year. Either way, the customer gets the car at invoice (read: a great deal).

People should make sure to get a fair deal, but it amazes me how people have the mentality that the dealership should make no profit. Then, when people have a problem or feel the dealer didn't go above and beyond, they complain. I'm not saying every dealer deserves our business, but c'mon. If you're the type of person where invoice (and often loyalty or conquest savings beyond that) are not good enough for you, you will never be satisfied.

[sendmeone]

Originally Posted by Pinkslip

Dealers get reimbursed only 2% on supplier deals. It used to be 3% last year. Either way, the customer gets the car at invoice (read: a great deal).

People should make sure to get a fair deal, but it amazes me how people have the mentality that the dealership should make no profit. Then, when people have a problem or feel the dealer didn't go above and beyond, they complain. I'm not saying every dealer deserves our business, but c'mon. If you're the type of person where invoice (and often loyalty or conquest savings beyond that) are not good enough for you, you will never be satisfied.

Pinkslip, I am not saying that the dealer is not making money. House never loses, but I work just as hard as anyone on the forum for my paycheck. Why would I want to give it away? When you purchase the vehicle new from the dealer, if you have a problem they get paid either way, hence the reason why you buy into a brand and not another.

I honestly think that so long that both parties honestly feel that they received a fair price or value for the vehicle...both parties win. If the dealer was losing money on my deal, or any other for that matter they wouldn't be in business...I can guarantee you that is not the case.