12VMan

He included a $1500 incentive on the nav package, but I'll check about the loyalty rebate. Thanks for the heads up.

12VMan

I'm in NC. So in the original deal, I paid around $1150 in sales tax. On the new deal I pay sales tax on the difference b/w the new card agreed price and trade, which comes out to just over $200.

mjfloyd1

Just glancing, it appears to be

New car is $42000 less $600 in taxes and fees = $41400 agreed new car price

$41400 less $35000 trade = $6400 difference + $200 new taxes = $6600 additional cost + $900 audicare loss =$7500 extra cost

Does that make sense?

mjfloyd1

It looks like the dealer wants you to focus on the difference you pay for the new car minus what you originally paid for your two week old car. He is not wanting you to focus on the depreciation hit or audicare loss.

I don't know if you can cancel the audicare since it's less than 30 days and you haven't used it

12VMan

That looks about right. He said that sticker on the new car is $46,535 and he is taking $1500 off of that for the nav package incentive and then $1000 off for audi loyalty program plus he is discounting another $2000 to get to $42,035. I feel like the 2 incentives (loyalty and incentive) are paid back to him by Audi so he could theoretically discount the car by another $2500 if he wanted to which would get me to a much more agreeable price point. That would mean I am paying $5000 extra for the new car with about $4k worth of new options and I would be sucking up the $900 audicare lost. This way I get the car I really want, he has a VERY satisfied customer who will be loyal to him and tell all my friends to buy from him, and he gets to sell 2 cars instead of 1 (my old one and the new one). He said if I did the trade in he would sell my old car, with about 600 miles, as a CPO for $36k and the buyer would get Audicare included since I already paid for it. That car would sell very quickly. Am I missing anything here?

mjfloyd1

I would think he would sell for at least a 5% to 6%discount and then take off the two incentive/loyalty discounts so push for more of a discount. The worst thing that can happen is for them to say no. Remember that he will have some additional costs with transporting the new car to his dealership. And don't forget that some of the additional cost is in the depreciation of your old car. As they say "the difference is the difference". If you feel OK with the additional cost, then go for it.

12VMan

I proposed that instead of financing an extra $7200 that I he go down another $2200 and I finance an extra $5000, suggesting that he pulls that $2200 from the incentives reimbursement he may get from Audi. He has made profit off my current car, will make profit off of it again when he sells it as a CPO (less than 1k miles on it, driven for 2 weeks, and "free audicare), and he will make a profit again off of the new car he is selling me. Seems like a no brainer to me but let's see. Thanks again for your input and advice.

mjfloyd1

The incentives come from Audi so I doubt that they will come down more than $800 or so but they may be more motivated than i think they will be -unless they increase the trade in value of your car too. But I've been wrong before. ..

12VMan

They wouldn't budge. The way I figure it is they are charging me the depreciation on the car ($4k) over what I would have paid had I bought this car form them originally. With the added features (prem sound & mmi/nav/backup camera) I'm hoping to recoup about half that when I sell it in 5-7 years and end up paying about $2k extra for my screwup.

dk1

You will get very little or nothing for the extra options when you sell the car. Yes, it will be more attractive to buyers but options like Nav depreciate the fastest.