A4Driver

I've seen several people here who claim they bought their new B8 at "invoice price." I'm curious, how can a dealership make a profit by selling a car at invoice? Are there incentives and other little deals that allow a dealership to do this?
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Toecutter

Invoice is not really what the dealership paid for the car.

AofC_RR

Funny only comes when we meet a certain sales quota from Audi. Then there's DOC fee, that keeps the lights on.

A4Driver

What "only comes when we meet a certain sales quota from Audi"? And what's the DOC fee, and who pays it? Thanks.
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AofC_RR

DOC fee is paid by everyone in most states. What I was getting at is the fewer cars a dealer sells the less $$ they get as help. More volume is more money.

markcincinnati

What I have heard is that Audi does not have holdbacks, invoice is invoice. . . .

dk1

People usually take cars for service to the same place where they bought them. Over the years dealership stands to make some money from servicing cars that they sell.

Also dealerships receive bonuses when then meet quota, as other posters already said.

I don't think these days you can have some hidden incentive program that the public will not know about.

CEB

...Dealers pay what is on their invoice, but....

there is a very convoluted super secret formula that manufacturers use to reward dealerships according to the number of cars they sell. This formula is not readily available to the public (or to dealer personnel for that matter) but given that it is fairly easy to buy a car at invoice, it is apparent that the dealership makes enough from the "processing fees not mandated by law" and that "reward" to allow dealerships to stay in business.

If you live close to another state then it might pay to shop both states. In the DC metro area, for example, VA allows dealers to charge "up to" $399 as a processing fee. Guess how much dealers will try to charge? MD has a "up to" $99 charge, so a car in MD is initially $300 cheaper than in VA.

Then there are regional advertising feesthat can change by region as well, so finding a car in West Virginia might be another $100 cheaper.

The last car that I paid over invoice for was in 1996 - even then, I used my GMCard to get invoice.

Most (many?) manufacturers also have "holdback" which the dealer gets once the car is sold. That is usually 2-3% of the base price (ie without options)but I understand that Audi did away with holdbacks a few years ago...

roccoman82

markcincinati is correct, no holdbacks, invoice is truly invoice.