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Audi A4 Prices Paid and Buying Experience

1537 messages,  Last post on Nov 28, 2009 at 4:04 PM

You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx

What is this discussion about? Audi A4, Sedan


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#991 of 1537
Current dealer cash by tmchan00
Sep 15, 2008 (10:36 pm)
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Does anybody know how much dealer cash are offered on 2008 A4 now? Until when? Many thanks.
#992 of 1537
Re: Current dealer cash [tmchan00] by chugs
Sep 16, 2008 (7:55 am)
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Replying to: tmchan00 (Sep 15, 2008 10:36 pm)

I bought the car a 4 weeks back it was 2k.
#993 of 1537
What is REAL cost; invoice clearly inflated by 09tlawd
Sep 19, 2008 (5:21 pm)
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With invoice on the 2009 A4 so close to MSRP, I looked around edmunds.com to see what % of profit there is on the A4 vs. some other cars. Turns out (including holdback) that a Honda Civic is 10%, Acura TL 11%, Porsche Cayman 13%, BMW 335 8%, and Audi only 7%. The Porsche makes sense as a lower volume premium vehicle. The Audi/BMW vs. Honda/Acura comparison clearly indicates that the A4 & 335 have profit hidden somewhere that consumers can't access. Premium brands would clearly have higher profit per vehicle compared to very high volume brands (Honda/Toyota) with less expenive product.
 
Could this be why for a new, significantly improved A4, people are already reporting being able to purchase at invoice?? An A4 ~$1600 below edmunds.com invoice would make the (consumer accessible) profit % in line with the Acura TL.
 
If anyone has data on where the rest of the A4 profit is hidden it would be greatly appreciated!!
#994 of 1537
Re: What is REAL cost; invoice clearly inflated [09tlawd] by waygrabow
Sep 19, 2008 (6:21 pm)
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Replying to: 09tlawd (Sep 19, 2008 5:21 pm)

An Audi rep told us that the profit margin on their vehicles varies depending on the Euro-dollar exchange rate. They can't drastically raise the prices when the dollar drops so instead they accept a lower profit marign. This is the current situation.
#995 of 1537
Re: What is REAL cost; invoice clearly inflated [waygrabow] by 09tlawd
Sep 20, 2008 (4:42 am)
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Replying to: waygrabow (Sep 19, 2008 6:21 pm)

That would be a reasonable explanation waygrabow, but that would also apply to other vehicles manufactured outside of the US (or even some Japanese cars 'made in the USA', but with parts sourced mainly from Japan). Certainly the Japanese Yen to US Dollar exchange rate fluctuates and if the dollar drops relative to the Euro then it drops relative to Yen as well.
 
I think the answer is more simple - a few manufacturers have realized that most educated consumers compare their final deal on a new vehicle to either 1) savings off of MSRP or 2) amount paid compared to "invoice". You can see comments on most of the Prices Paid & Buying Experience threads on most vehicles where people compare their deals to MSRP and/or Invoice.
 
By raising the invoice amount to a falsely inflated number, Audi, BMW, and probably others are able to make consumers feel like they have gotten a bargain and the car manufacturers still make the same profits they always have.
 
Good marketing, but bad for buyers' wallets.
#996 of 1537
Re: 2009 A4 2.0 Premium Plus lease [luvlee824] by rxke
Sep 20, 2008 (7:25 am)
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Replying to: luvlee824 (Sep 08, 2008 10:38 am)

Hi
 
One of the cars I am looking at is the 2009 A4 among others. What dealer did you go to in NY? I live in Westchester county.
 
thanks
#997 of 1537
What a nice car!! by djdj
Sep 20, 2008 (12:13 pm)
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The dealer where I get my 2003 A4 1.8 FrontTrak serviced was having an introductory show today for the new A4. Nothing but A4's in the showroom and three out front for test drives.
 
I test drove the 2.0 sedan. I loved the way it drove, rode and handled. But in showroom, they had the Avant. Even better in person than the photos. I don't need a wagon but I think it looks great.
 
I didn't price shop because I'm not buying until January when my daughter gets her license and I'll let her drive the 2003.
 
We have 4 Audi dealers around Cleveland. Should be interesting to see if any are doing deals once the novelty has worn off. Also, I want to drive the new TL before I decide.
 
Has anyone else checked out the Avant?
#998 of 1537
Re: What is REAL cost; invoice clearly inflated [09tlawd] by carsonotk
Sep 22, 2008 (6:34 pm)
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Replying to: 09tlawd (Sep 19, 2008 5:21 pm)

This is an interesting question, ie. is the published invoice price real? Just bought a 2009 A4 sedan at about 5% over invoice, or $1000 less than sticker. The dealer told me that my invoice data was too low by $700 and confirmed this with the invoice for an identical car he had just sold (and which I had seen on the lot a few days before). So if the true figure is the edmunds.com invoice, I paid 5% over, and if it was the dealer's figure, I paid 3% over.
 
I have an unconfirmed suspicion that dealer invoice is inflated somehow. But one would think that Audi would risk a class action lawsuit and a reputation risk if they did that. Maybe they get by with publishing "estimated" invoice figures, that edmunds.com then publishes as actual invoice. The invoice does seem a little too close to MSRP for a premium vehicle like this.
 
Anyway, I hope the suspicions are unfounded, as I would like to believe this was a decent deal! Car arrives in mid-October from Germany. I probably won't care about a thousand or two once I get behind the wheel!
#999 of 1537
Couple things. by kyfdx HOST
Sep 23, 2008 (4:58 pm)
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1) Audi doesn't "publish" the invoice price... It's a confidential document, meant only for their dealers.. So, I don't think there is any risk on their part, no matter what the numbers are.
 
2) Actual dealer invoices usually have some sort of regional advertising charge. That usually accounts for any discrepancy between what Edmunds states as the invoice, and what the dealer says..
 
There isn't a lot of room between MSRP and invoice on an Audi. Personally, I think that is just a way to keep the MSRP lower than the competition..
 
regards,
kyfdx
#1000 of 1537
Re: Couple things. [kyfdx] by carsonotk
Sep 23, 2008 (5:07 pm)
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Replying to: kyfdx (Sep 23, 2008 4:58 pm)

Good information to have kyfdx. But how does Edmunds calculate an invoice price if it is confidential?

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