looking@audi

Whether it's worth it or not is very subjective, and subject to debate depending on your values.

Personally, if I owned the car I probably would not purchase Audi Care.

However, since I lease the car the actual cost is approximately $5 more per month. It's actually a stupid decision not to get Audi Care.

The reason as noted by Snagit is that AFS increases the residual by 1%. On a $55K to $80K car, the residual increases $550 to $800, and Audi Care is only $820.

jw62

I saw this thread while researching Audi Care for my new 2015 Q5 TDI. Just picked it up at the dealer yesterday and I can confirm the formula is (for California purchases only):

Before first service - 95% refund
After 15,000 mile service - 50% refund
After 25,000 mile service - 30% refund
After 35,000 mile service - 10% refund
After 45,000 mile service - 0% refund

The current Audi Care price as of January 2015 for a Q5 is $860, so if I return the car at lease end with 30,000 miles on the ODO, I'll get $258 back. I'll have paid $602 for the 15,000 & 25,000 mile services. That should save me some on the regular dealer prices, especially since the TDI needs AdBlue additive that the gas engines don't require.

Your mileage may differ...

Boost Addiction

I declined Audi Care on my new S6. I did so because I don't expect to have driven 45,000 miles in 5 years. It's that last service (at 45,000) that is expensive for the S6, and by presumably missing out on it in the mandatory 5-year period, the numbers just didn't add up.

IOW, if you are a low-mileage driver, it may not make sense based on the 5-year imitation.

In any case, I may have some of the services done locally at a non-dealer, or DIY, depending on how the service experience is at my local dealer.

snagitseven

Audi recommends the service intervals at every 10K miles OR 12 months, whichever comes first (after the first 5K service). Audi Care, of course, follows the same schedule. Therefor, for those planning on having the dealer perform the scheduled maintenance, the benefit and value applies to all, regardless of miles driven (including the "45K" service).

toramo1

Thanks for the great summary and analysis. I think you are spot on regarding the convenience of being able to get warranty work done at the dealership while getting the periodic service. Doing that is always a plus for me since getting a loaner is easy from local my Audi dealer. Now I'll consider picking up Audi Care after I take delivery of my '16 A6.

AvantMore

What a great thread - the reason I love AudiWorld. I've enjoyed your posts over the years Snagit.

So, I am negotiating purchase of Q7 Sport loaded to the brim (everything possible) and a All Road, premium plus, tech and sport. Dealer put me at invoice for both plus available incentives. I said great, deal - if you include Audi Care for both cars. He said no way, he's already to the "bone." I told him I've been buying Audis for so long, I've never paid for Audi care...

Part of the purchase decision is based on my current cars coming off Audi Care (and Warranty) and having to pay for all maintenance. I lose some incentive if I have to now pay for Audi Care.

So... long story short, I am surprised to see that the dealers Audi Care Cost is 90% or retail - where does that figure come from?

(And tell me if I am wrong, based on the invoice purchase of a loaded Q7 and a fully equipped All Road - two cars, one shot - I am not unreasonable to expect the inclusion of Audi Care...)

Thanks for the original post and any additional information.

snagitseven

My dealer of 11 years confirmed their cost is about 90% of retail on Audi Care and I have no reason to doubt them. Three other dealers told me the same thing over the years. Their incentive to sell AC is they hope to capture your service business.

My take is if the dealer is selling you at invoice cost, expecting them to go below that by absorbing another $1700 or so for both cars is not realistic in most cases. If they sold you each car at $1500 above invoice and "threw in" Audi Care, you might feel better but you wouldn't be getting as good a deal as you are now. At invoice, the only money the dealer is making is on incentives for meeting overall dealership goals for sales, service, cust. satisfaction, etc. A dealer like any other business has to make a profit or they will be soon gone.

I spent my 44 year career in retail and it sometimes I am often amazed that we can expect car dealers to sell below their cost but wouldn't even consider trying to negotiate a price at a restuarant, gas station, supermarket, Apple store or most any retail chain. Unless the dealer is close to his monthly goals and willing to sell below cost, I can understand why they would balk no matter if it's one car or ten. If they lose money, they can't make it up in volume. I think you are getting a very good deal at invoice without AC. But only you can decide. If they let you walk you'll know.

AvantMore

Thanks Snag. I certainly don't expect a dealer to take a loss to sell cars to me. I just view "invoice" as about as accurate and precise as "wind chill" or "heat index" because of everything that I imagine goes on between the dealer and Audi behind the invoice transaction. Maybe my imagination is too active....
I appreciate your insight.

snagitseven

Avant, money behind the invoice is less than most would believe with Audi. Since Audi doesn't use fixed percentage "holdbacks" like most brands, as I mentioned, the only dollars behind the invoice cost (always 93% of sticker plus full freight cost) for the dealer are those various periodicl incentives for meeting various dealership goals. Unlike a holdback, these dollars are not tied to specific cars however, and are applied to the dealer's balance sheet. The only exception might occur at model year end after new cars are being delivered when Audi could attach an individual car rebate to the dealer. There is also often a fixed amount to help offset some of the dealer's advertising cost (about $350-400 called "co-op") but the dealer has to actually spend advertising money to receive this.

Good luck on the cars! Buying one at a time is enough of a challenge. I would imagine two is even more fun.

What Is Dealer Holdback? on Edmunds.com

AvantMore

Sort of off topic at this point, but just to follow up - dealer bought one Audi Care and I bought the other. Split the baby... Thanks again for a great original post Snag.