Advice for first timer ordering Q5 through dealer
04-08-2014, 10:26 AM
#21
AudiWorld Super User
Not the traditional holdbacks as found with most other manfs. He may be referring to the aforementioned rebate credits that Audi has for meeting various AOA goals like meeting sales quotas, customer surveys, achieving service dept. billing quotas, etc.. Holdbacks are a fixed percentage per car whereas achieved dealer incentives are differing dollar amounts each period and not assigned to individual cars.
Excerpts from Edmunds holdback article:
<table><tbody><tr><th>Make</th> <th>Holdback</th> </tr> <tr> <td>Acura</td> <td>2% of the Base MSRP</td> </tr> <tr> <td>Audi</td> <td>No holdback </td> </tr> <tr> <td>BMW</td> <td>No holdback </td> </tr> <tr> <td>Buick</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Cadillac</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Chevrolet</td> <td> 3% of the Total MSRP </td> </tr> <tr> <td>Chrysler</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Dodge</td> <td>3% of the Total MSRP </td></tr></tbody></table>.....
"With the introduction of holdbacks some years ago, most manufacturers inflated the invoice prices for every vehicle by a predetermined amount (2-3 percent of MSRP is typical). The dealer pays that inflated amount when it buys the car from the manufacturer. But later, at predetermined times (usually quarterly), the manufacturer reimburses the dealer for the excess amount. This is the "holdback," so named because funds are "held back" by the manufacturer and released only after the vehicle is invoiced to the dealership."
Excerpts from Edmunds holdback article:
<table><tbody><tr><th>Make</th> <th>Holdback</th> </tr> <tr> <td>Acura</td> <td>2% of the Base MSRP</td> </tr> <tr> <td>Audi</td> <td>No holdback </td> </tr> <tr> <td>BMW</td> <td>No holdback </td> </tr> <tr> <td>Buick</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Cadillac</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Chevrolet</td> <td> 3% of the Total MSRP </td> </tr> <tr> <td>Chrysler</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Dodge</td> <td>3% of the Total MSRP </td></tr></tbody></table>.....
"With the introduction of holdbacks some years ago, most manufacturers inflated the invoice prices for every vehicle by a predetermined amount (2-3 percent of MSRP is typical). The dealer pays that inflated amount when it buys the car from the manufacturer. But later, at predetermined times (usually quarterly), the manufacturer reimburses the dealer for the excess amount. This is the "holdback," so named because funds are "held back" by the manufacturer and released only after the vehicle is invoiced to the dealership."
04-14-2014, 01:01 PM
#23
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Congrats! What did your dealer tell you in regards to estimated wait time? I ordered on 4/7/14 and it was slotted for build week 20 (5/12/14). No estimated date of arrival yet but I'm hoping for mid to late June.
04-15-2014, 02:00 PM
#25
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BDa
04-15-2014, 02:46 PM
#26
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Dealers make way more than $1000 per car
Ok dealer has about 30 employee making lets say average $100k a year when you include the bosses. The dealer has rent of what $20,000 a month, plus prep etc.
Dealers are getting the cars for way less - the cost is a loaded cost after paying all their expenses.
Dealers are getting the cars for way less - the cost is a loaded cost after paying all their expenses.
Not the traditional holdbacks as found with most other manfs. He may be referring to the aforementioned rebate credits that Audi has for meeting various AOA goals like meeting sales quotas, customer surveys, achieving service dept. billing quotas, etc.. Holdbacks are a fixed percentage per car whereas achieved dealer incentives are differing dollar amounts each period and not assigned to individual cars.
Excerpts from Edmunds holdback article:
<table><tbody><tr><th>Make</th> <th>Holdback</th> </tr> <tr> <td>Acura</td> <td>2% of the Base MSRP</td> </tr> <tr> <td>Audi</td> <td>No holdback </td> </tr> <tr> <td>BMW</td> <td>No holdback </td> </tr> <tr> <td>Buick</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Cadillac</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Chevrolet</td> <td> 3% of the Total MSRP </td> </tr> <tr> <td>Chrysler</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Dodge</td> <td>3% of the Total MSRP </td></tr></tbody></table>.....
"With the introduction of holdbacks some years ago, most manufacturers inflated the invoice prices for every vehicle by a predetermined amount (2-3 percent of MSRP is typical). The dealer pays that inflated amount when it buys the car from the manufacturer. But later, at predetermined times (usually quarterly), the manufacturer reimburses the dealer for the excess amount. This is the "holdback," so named because funds are "held back" by the manufacturer and released only after the vehicle is invoiced to the dealership."
Excerpts from Edmunds holdback article:
<table><tbody><tr><th>Make</th> <th>Holdback</th> </tr> <tr> <td>Acura</td> <td>2% of the Base MSRP</td> </tr> <tr> <td>Audi</td> <td>No holdback </td> </tr> <tr> <td>BMW</td> <td>No holdback </td> </tr> <tr> <td>Buick</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Cadillac</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Chevrolet</td> <td> 3% of the Total MSRP </td> </tr> <tr> <td>Chrysler</td> <td>3% of the Total MSRP </td> </tr> <tr> <td>Dodge</td> <td>3% of the Total MSRP </td></tr></tbody></table>.....
"With the introduction of holdbacks some years ago, most manufacturers inflated the invoice prices for every vehicle by a predetermined amount (2-3 percent of MSRP is typical). The dealer pays that inflated amount when it buys the car from the manufacturer. But later, at predetermined times (usually quarterly), the manufacturer reimburses the dealer for the excess amount. This is the "holdback," so named because funds are "held back" by the manufacturer and released only after the vehicle is invoiced to the dealership."
04-29-2014, 01:10 PM
#28
AudiWorld Super User
06-11-2014, 08:57 AM
#30
AudiWorld Member
In order to stay in business, like any other retailer, a car dealer has to make a profit after expenses - they can't realistically sell cars at or below cost for long. While dealer service departments will provide the highest profit margins, sales and service are almost always a separate profit center so the sales department too, has to be profitable.
But why would a dealer sell below his/her actual cost? There's generally not enough incentive for him/her to do so. If he/she has a slow service business, even warranty work will help pay the bills...that is if the customer returns to the selling dealer for service.
