Dealer couldn't get close to the price!

[mistertee]

Hello all,

I specced myself up a 1.4 COD s-line sportback with

5 yr Warranty
Comfort pack (acoustic parking + cruise control)
Folding mirrors
No sports suspension
Interior lighting pack
Almafi white

£25895 otr road.

Went along to Audi dealership, armed with drive the deal which was £2053 off. The first offer was £500 off, and when he saw my face he went off to the boss again and got £1000 off. Seems quite far off the 8-10% I wanted. I said I'd think about it.

Trading in my car was also interesting, he said he'd value it once the new car arrived. Is it better to get an idea now? I don't want a measly offer for mine once the car arrives, I'd prefer to have some sort of idea how much I'm going to expect minimum.

Thanks

 

[Coxy234]

I ordered the same 1.4 COD s-line sportback in Glacier White with total price at £27k and managed to get £1530(5.5%) off with free LifeShine and AutoGlym kit. I have a feeling I could have got him down more if I was willing to leave and wait for the call back.

 

[mjcourtney]

You'll be lucky to get an 8% discount at a dealer (although some have managed it). 10% - no chance, there's just not that much margin in it for them. The average discount (from here) seems to be around 5 to 7% from a dealer, and about 8% from a broker.

Lifeshine is reasonable, but as has been discussed on other threads, it's not worth half of what they say it is. If you got it chucked in for free you did well though

 

[Coxy234]

You'll be lucky to get an 8% discount at a dealer (although some have managed it). 10% - no chance, there's just not that much margin in it for them. The average discount (from here) seems to be around 5 to 7% from a dealer, and about 8% from a broker.

Lifeshine is reasonable, but as has been discussed on other threads, it's not worth half of what they say it is. If you got it chucked in for free you did well though

I've read mixed reviews about the LifeShine so it's something I would never pay for, in all honesty I only wanted the AutoGlym kit.

 

[mjcourtney]

It's a good kit, I use it every time I wash the car. The LifeShine protection is good, just not worth what they try and ask for it. The Aqua Wax is particularly excellent

 

[hittchy]

To be fair to the dealer, if you're screwing them down on price they haven't got a margin for error. Cars depreciate differently and they usually sell them on to another dealer. As it's a few months down the line, it's not an exact science.

If you ordered from Drive the Deal, you'd have to sell your current car yourself. It seems a little unfair to expect the dealer to take the risk of your part exchange and meet the broker price.

My local dealerships wouldn't discount the car so I had to travel 150 miles to get a deal of 7%. No part exchange though. If I needed to, I'd have used some of the online 'We Buy Any Car' type of outfits for an indication and then telephoned some Audi dealers to see if they wanted to buy. As long as you've got your purchase price right, your part ex will sell for whatever the value is at the time, through the dealer, a web broker or privately.

 

[First Ever Audi]

To be fair to the dealer, if you're screwing them down on price they haven't got a margin for error. Cars depreciate differently and they usually sell them on to another dealer. As it's a few months down the line, it's not an exact science.

If you ordered from Drive the Deal, you'd have to sell your current car yourself. It seems a little unfair to expect the dealer to take the risk of your part exchange and meet the broker price.

My local dealerships wouldn't discount the car so I had to travel 150 miles to get a deal of 7%. No part exchange though. If I needed to, I'd have used some of the online 'We Buy Any Car' type of outfits for an indication and then telephoned some Audi dealers to see if they wanted to buy. As long as you've got your purchase price right, your part ex will sell for whatever the value is at the time, through the dealer, a web broker or privately.

My dealer didn't offer a discount as such, but he did give me almost 30% more for the Trade in than i had been offered on comparable new cars from other manufacturers. i guess that was my discount I believe that the dealers make very little on the sale, but the profit comes from repeat business, accessories and servicing.

 

[RossR]

I've read mixed reviews about the LifeShine so it's something I would never pay for, in all honesty I only wanted the AutoGlym kit.

I did a lot of research into these types of product. My conclusion was Lifeshine is a decent product if applied well (which it often isn't) and there are better alternatives for slightly more money.

I'm getting a full Gtechniq package (paint, glass, wheels and interior) applied to mine by a detailer for £295.

 

[mjcourtney]

I believe that the dealers make very little on the sale, but the profit comes from repeat business, accessories and servicing.

Yep, and kickbacks for total amount of sales. Margin per car isn't that great (in the UK at least)

 

[Chappers]

I did a lot of research into these types of product. My conclusion was Lifeshine is a decent product if applied well (which it often isn't) and there are better alternatives for slightly more money.

I'm getting a full Gtechniq package (paint, glass, wheels and interior) applied to mine by a detailer for £295.

You won't regret the Gtechniq package, had exactly that done to mine the week after I collected it. Amazing stuff! Would recommend to all. The detailer I used also did a correction detail at the same time so before being coated it was also machine polished.

 

[smk82]

I managed a 7.6% discount for mine, + a guaranteed value for my car on trade in. (I'll still try and sell privately, just nice to know that I have a back up in case I can't in time).

My advice would be ring around more, don't just rely on your local dealer. Have your spec set, and ask what would be your best price for this spec. Don't let them talk about monthly payments or trying to get you to the showroom, thats their turf! Let them work for it!

 

[Daveotto]

You won't regret the Gtechniq package, had exactly that done to mine the week after I collected it. Amazing stuff! Would recommend to all. The detailer I used also did a correction detail at the same time so before being coated it was also machine polished.

have you got any pics, before and after would be even better

 

[RossR]

You won't regret the Gtechniq package, had exactly that done to mine the week after I collected it. Amazing stuff! Would recommend to all. The detailer I used also did a correction detail at the same time so before being coated it was also machine polished.

It'll be getting a machine polish too, but hopefully won't need much as it will be pre-delivery and I've asked the dealer not to wash it.

 

[mistertee]

I was aware that I wouldn't be able to get as close as drivethedeal, which is about 8% but the 4% offered isn't very close. I agree that dealerships offer a better service face-to-face etc, but I wouldn't put a £1000 price on that

Interestingly, I emailed 3 other dealerships, one sent me a curt email saying they didn't want the business (!), another rang me back and said they weren't discounting at all for the A3, and one invited me for a test drive and a chat. These car deals remind me of mortgages, regardless of what apr you've managed, someone always manages a better deal

As for gtechnic, best stuff I've ever used as a sealant, had C5 on my alloys and the brake dust fell off after rinse with water. Very expensive though. About £1,500 a litre if you work it out.

 

[mjcourtney]

Yes a few colleagues have had the old 'we don't discount the A3 range' from dealers. However, when they called in person things were very different. I get the impression dealers don't like offering discounts without first seeing you face to face. "Best I can do is £500 off" is also another common response, but if you push them you should get more.

 

[carl-1968]

Not having a trade in can also work in your favour as the dealer has no disposal risk therefore can afford to cut their profit margin to secure the sale, the earlier comment about services and extras is where they can make a profit a good example is gap insurance

 

[Zoowatch]

Hi there,

I have done quite a bit of bargaining, including making public transport journeys to 8 different Audi Dealers over the past 30 days. I was also in touch with brokers to get the best purchase price possible.

Eventually, I got a 9.55% off the on-the-road-price, not through a broker but from an Audi dealer (although they are 150 miles away from me but I wouldn't mind picking up this car later). I would say that be really patient. Be prepared to get a lot of "No", and walk away although you have just spent 2 hours travelling/walking there. Also, work out exactly what you want. Do all the homework on the specs and options. I put down a deposit a couple of days after price increases on 1 July, and still insisted that I get the lower price before the price increase. I did that in a nice way, of course.

Do a bit of reasearch on car sale (Autoglym commission, back end vs. front end margin), also show them that you are serious and you will put down a deposit on that day if the purchase price is right. Never work on the basis of monthly PCP payment, never. Get the best purchase price. If you are part-ex'ing, remember to also negotiate a good price for your old car. If the retail side is not moving, then try to get in touch with Fleet Managers if that's possible. Lastly, don't discuss financing options (e.g. PCP deals) until you are about to commit. Tell them that you would be financing the car privately, or by using your personal bank loan.

Even then, you will still get lots of "No". Be prepared to call different dealers, and travel to meet the sale reps if necessary. Talk to them nicely and show that you are serious about doing business with them. Being direct and honest (e.g. "I would be basing my decision on the final purchase price. if the price is right, I'm happy to pull the trigger.") worked well for me.

Eventually, I got A3 Sportback in Misano Red. I'm excited by the prospect of driving my very first Audi (have been with Volvo for quite some time). Be realistic on the discount you can get, but remember that price is always flexible, so everything is up for negotiation really.

The good thing is that you are here in this forum. A lot of guys here are pretty knowledgeable and you can learn a lot by reading some of the posts on here. Good luck to you.

 

[Daveotto]

I put down a deposit a couple of days after price increases on 1 July, and still insisted that I get the lower price before the price increase. I did that in a nice way, of course.

On my current car which I bought in Jan 2010 just after the rise in VAT from 15% to 20% I go the dealer to pick up the extra VAT on top of the originaly agreed discount -so in effect total was around 10 - 13% if I remember correctly, plus a decent Px

 

[mistertee]

Wow Zoowatch, you really like a bargain don't you?

I effectively have 2 jobs so I don't have the time to do what you did, but I will try a bit more before I end up at a broker. 7% is what I'm aiming for now.

Another dealer got back to me today saying they couldn't get to 4%, although this was over the phone which I don't think works. I sent a complaint to the other dealership about the tone of the "no" email, it was that bad.

I do hope to join you all in audi land one day

 

[Fragup]

Really good advise, thanks zoowatch, am new to forum and this helps a lot, looking at sline Misano red so liking your spec.
thanks

 

[Rup]

Just ask the dealer to match the drivethedeal price or you will leave. Worked for me straight away, don't really have the time to visit/call multiple dealers.

 

[Kraken27]

The trick I used was to tell the dealer I wanted everything from them, e.g. finance & GAP insurance, so they saw £££ in the deal. Got them to price match an online broker for the new car price & got a decent part-ex value for my old car (guaranteed at the time of order). Estimated delivery time at order was 8-10 weeks. A shade under 7 weeks after ordering I was in the showroom to collect the new A3.

I had done a little homework & have a friend who works for a franchised VW dealer (so same finance company that Audi use). He told me that if you take the finance & repay in full within 28 days, the dealer does not get the commission. Dealer sold GAP insurance can be cancelled during the cooling off period (14 days). You can guess the rest... I turned up to collect the car and when the finance documents were produced, I got the debit card out and said I had changed my mind about how I wanted to pay. A little "chat" followed, but given that they had an A3 on the forecourt with all my extras added on, registered to me, they were hardly going to back down. Needless to say I cancelled their £725 GAP insurance and bought better cover online for £249.

I may have jumped the delivery queue a little due to the perceived £££ the dealer thought they were going to make. A colleague ordered her A3 from a different branch of the same dealership [but told them she was financing it herself] - she ordered before me & got delivery after me, for a fairly comparable A3. Draw your own conclusions.

 

[mistertee]

Kraken27, that is brilliant!! I've put my a3 on hold now, whilst I explore other options. Unsuprisingly, now it's getting to the end of the month, dealers are emailing me asking what they could do to get my sale. I got one this morning with I quote "the sales manager is hungry for sales", all I can say is..if you'd have negotiated earlier I would have snapped your hand off.

 

[cemerson]

Did you tell them that?

 

[sftdi]

The trick I used was to tell the dealer I wanted everything from them, e.g. finance & GAP insurance, so they saw £££ in the deal. Got them to price match an online broker for the new car price & got a decent part-ex value for my old car (guaranteed at the time of order). Estimated delivery time at order was 8-10 weeks. A shade under 7 weeks after ordering I was in the showroom to collect the new A3.

I had done a little homework & have a friend who works for a franchised VW dealer (so same finance company that Audi use). He told me that if you take the finance & repay in full within 28 days, the dealer does not get the commission. Dealer sold GAP insurance can be cancelled during the cooling off period (14 days). You can guess the rest... I turned up to collect the car and when the finance documents were produced, I got the debit card out and said I had changed my mind about how I wanted to pay. A little "chat" followed, but given that they had an A3 on the forecourt with all my extras added on, registered to me, they were hardly going to back down. Needless to say I cancelled their £725 GAP insurance and bought better cover online for £249.

I may have jumped the delivery queue a little due to the perceived £££ the dealer thought they were going to make. A colleague ordered her A3 from a different branch of the same dealership [but told them she was financing it herself] - she ordered before me & got delivery after me, for a fairly comparable A3. Draw your own conclusions.

Would have loved to have been a fly on the wall when you dropped that bombshell on them about the finance.

I know that if finance is taken out it can be paid back early, say in the first month with a slight hit on the interest. But for you to pay upfront instead was a great move. Hats off to you as I am not sure I would have the nerve!

 

[Zoowatch]

So can I assume that most A3/S3 buyers here are opting for the Audi 5.9% fixed / 6.4% APR PCP finance deal? Is the interest rate negotiable?

 

[mistertee]

Did you tell them that?

No, this particular dealer was very nice, so I didn't want to rub their nose in it. But that very day, if they had matched the DTD price I would have signed up.

 

[cemerson]

You should let them know - if they are questing why they didn't get the sale even though they seem desperate to sell, I'm sure they'd appreciate the feedback!

 

[RossR]

So can I assume that most A3/S3 buyers here are opting for the Audi 5.9% fixed / 6.4% APR PCP finance deal? Is the interest rate negotiable?

I went for the Audi PCP and a few others have too. Some are getting it through company lease schemes. Some are buying cash or sorting there own finance. Couldn't tell you how the split works out.

I doubt the interest rate is negotiable as it's provided by a third party. However, dealers get a fair kickback for "selling" finance, so they may be willing to pass some of that on in the form of a better discount/trade in/freebies.

 

[cemerson]

Yeh - mine worked out at 6.1% APR in the end due to the dealer trying to fiddle the numbers a bit without me noticing (I did notice, of course - and then made him correct it but keep the APR the same so I got a bit more off)

 

[Kraken27]

Would have loved to have been a fly on the wall when you dropped that bombshell on them about the finance.

I know that if finance is taken out it can be paid back early, say in the first month with a slight hit on the interest. But for you to pay upfront instead was a great move. Hats off to you as I am not sure I would have the nerve!

All the warning signs were there for the dealer. During the negotiations to buy the car I walked out of the showroom as the salesman was taking too long "talking to his boss" in the back office. I'd finished my coffee, so I walked out. Would love to have seen the salesman's face when he emerged from the bosses office to see an empty chair and coffee cup at his desk. He caught up with me halfway across the forecourt

The look on the Business Managers face was a picture when I produced the debit card to pay for the car. He did make a bit of an issue saying I had to sign the finance docs. I just replied that we could do it the easy or hard way, but either way there was no commission in it for him as I would repay in full within a week. He went to get the card machine with a scowl on his face.

Oh, it gets better - when I got the after sales call from Audi UK, I mentioned to them a few fibs the salesman told me on the test drive - which all got fed back to the dealership. Later that day I had the Dealer Principal on the phone apologising and offering to take the car in to apply Lifeshine free of charge by way of amends.

I somehow suspect that my next Audi will have to be ordered via a different dealership!

 

[sftdi]

All the warning signs were there for the dealer. During the negotiations to buy the car I walked out of the showroom as the salesman was taking too long "talking to his boss" in the back office. I'd finished my coffee, so I walked out. Would love to have seen the salesman's face when he emerged from the bosses office to see an empty chair and coffee cup at his desk. He caught up with me halfway across the forecourt

The look on the Business Managers face was a picture when I produced the debit card to pay for the car. He did make a bit of an issue saying I had to sign the finance docs. I just replied that we could do it the easy or hard way, but either way there was no commission in it for him as I would repay in full within a week. He went to get the card machine with a scowl on his face.

Oh, it gets better - when I got the after sales call from Audi UK, I mentioned to them a few fibs the salesman told me on the test drive - which all got fed back to the dealership. Later that day I had the Dealer Principal on the phone apologising and offering to take the car in to apply Lifeshine free of charge by way of amends.

I somehow suspect that my next Audi will have to be ordered via a different dealership!

Sounds like the dealer got their just desserts!

What sort of % discount did you receive off the OTR price? You said you were given a reasonable part ex value on your old car?

 

[sftdi]

Sounds like the dealer got their just desserts!

What sort of % discount did you receive off the OTR price? You said you were given a reasonable part ex value on your old car?

Just re-read your post and notice the dealer price matched a broker price so typically around 8% discount.

so all in all, a sweet deal!

 

[Kraken27]

Just re-read your post and notice the dealer price matched a broker price so typically around 8% discount.

so all in all, a sweet deal!

Yep, it was about 7.8% discount on the new A3.

I went into the dealership with 2 online broker quotes vs the Audi list price (all broken down item by item in a spreadsheet). When the salesman retrieved me from the forecourt after I had walked, they took next to no time to agree the discount if I placed the order that day. (Bear in mind they would have been seeing PCP & GAP commission pound signs at this point!)

On the part-ex, they agreed a value of £100 less than what I wanted at the time for 8-10 weeks down the line (when delivery was estimated to be). Sure, I could have got more via a private sale or a webuyanycar.com sale, but with the hassle that either option entails. You pay a bit of a price for the convenience of part-ex.

At the end of the day, I got a deal I was happy with & a car that I am very happy with. If the dealer got a bit of a shafting in the process, then so be it!