I am reading that dealer prep is basically BS and shouldn't be paid, my salesguy is trying to hit me up for $200 as this.

 

I can't answer your question - but there was thread about that - https://www.audiworld.com/forums/sho....php?t=2727802

 

Thanks for the link, so this "seems" to be legit. Hmmm.

 

The MSRP and the underlying invoice include the total price of the car and delivery to the dealer including preparation. Audi pays the dealer to do an inspection prior to delivery.

The destination charge on the sticker is actually a "charge at destination" and is not actually collected by the factory. (remember delivery from Germany to the dealer is in the MSRP.) This is shown this way to allow the dealer to make some money without paying a commission to salesmen on that amount. Salesmen don't get spiffed on DMV fees, tire fees, and loan fees either.

The dealer does not need to charge this amount, but few will pass it up unless you are skilled at the art of the deal.

It is difficult to determine the price of each unit because there is usually only one person at the dealer who knows the exact amount of each deal. He is not telling either. Looking at auction and flooring costs for A4's it looks to me like $2,600 to $2,800 below invoice will allow the dealer to keep the doors open, and give you a killer deal.

 

They are reimbursed by Audi of America for any pre-purchase preparation or inspection, tell them to shove it. As for the other BS (documentation fees), here in NJ they have to disclose what those fees actually pay for, your state may vary. I called out an Acura dealer on their break down because it didn't make any sense ($100 for "computer time", this isn't 1973 folks)... they took almost all of it off. Grandma was happy, and the fee was BS anyway because she paid cash for the car. It would have been pure profit for the dealer as they had to do nothing but title the car.

Here are the only legit fees you have to pay:
Title fee- should be your state's cost for a new car title with one lien holder (if financing)
Registration- should be your state's cost of one or more years of registration for that vehicle. Depending on the state, this is usually a flat yearly fee or road tax calculated based on the percentage of what the car is worth.
New tire tax- If your state has one (NJ does)

 

OK so my salesguy is quoting 4% as his margin, is taking the line items on the invoice (including the prep fee) and adding 4% and telling me that is the sale amount. That puts the number at about $1500 over invoice.

How on earth would he be able to sell me the car for that much under invoice?

What annoys me is I gave him the opportunity to give me a good price, but nothing crazy ($800 over invoice for example) and what he came back with was higher than I could get through a site like zag without having to do any work! Quite honestly I was annoyed and just emailed him back telling him that was not even close and left it at that.

 

ut apparently there is a line on the invoice for dealer prep (and ad fee), but you are saying that post sale they will be reimbursed for that? Seems like some others disagree.

 

Yes, that is indeed the truth. I have never paid any sort of vehicle prep fee on any car I have purchased, new or used. The pre-delivery inspection (Audi's official term) I am referring to is the check list Audi of America makes the dealer follow when the car comes off of the truck. It includes things like removing the white protective plastic, removing the foam spacers off of the suspension, checking various functions of the car for proper operation (headlights, wipers, etc.), checking for obvious defects, and removing the shipping stickers from the windshield. Audi of America reimburses the dealer in full to do that for EVERY new car they have in inventory.

 

PDI or Pre delivery inspection is separate from the PORT PREP charge on the dealer invoice. PDI is never charged to the customer. Sorry Port Prep is legit and on every invoice. I did a friends and family deal today, that's $300 over invoice, the guy actually called his contact at Audi to verify the Port Prep and regional advertising charge on the invoice because he didn't think he should have to pay them, they are REAL. Pay profit and be a supporter of capitalism. This isn't a socialist republic. You don't work for free neither do we. Look at things from a dealer's point of view. You have a multi million dollar facility, staff, millions in inventory. Your sales staff is there 12 hours a day hustling to make a living that ultimately translates to about $8 an hour after taxes.
Would you want to go for joyrides all day in cars with strangers, answer ridiculous questions, bend over backwards for people all day, have to argue with somebody to make a living and at the end of the day be glad you made $150 for what was in reality about a week's worth of work?
Nor can you complain your dealer doesn't provide Audi loaners when you want to buy things for cost or less.
Anyway I'll get down off my soapbox, oh and thank you TIME89 for posting up that thread. Always helps when it's been discussed before.

 

I would agree if car salesman weren't so well known for adding bogus charges. You can't blame someone for trying. I am happy to pay a reasonable margin to the dealer up to 800 over inv but I they make me fight for it.