Obsidian3K

There appears to be 8% of margin in all A4 models (also Q5s, BMW 3-series, Mazda CX-5s... a curiosity, that).

6% discount would leave the dealer 2%, which does fall into the 2-3% range often considered reasonable to leave for the dealer.

That of course doesn't count any other back-end margin, margin on additional products (Audi Care, extended warranty, accessories), etc., so 2% to the dealer can probably be considered a worst-case scenario.

I think 6% is reasonable, and it's what I'll be aiming for when I'm ready to negotiate on a new Allroad in the coming months. Don't forget to take into account any cash incentives that exist when you're ready to buy! The current $1,000 incentive (specifically the $750 that Audi Canada contributes) represents an extra 1.2-1.4% of margin to work with, depending on the MSRP of your chosen configuration.

Also, don't underestimate the value of lower interest rates. Getting another 1% off MSRP will be worth at most $650, while 1% off the APR will save you $1,500+, unless you have a huge down payment.

EDIT: And remember that the dealer admin fee (as well as any other fees that aren't government-mandated) is part of the profit margin. Some dealers refuse to drop the admin fee line item entirely, so be prepared to bump that 6% discount up to offset any fees that the dealer isn't willing to zero out.

securityguy

My dealer was giving 10% off on 2017 and 6% on 2018.

VM

In Canada?!?

securityguy

US

Obsidian3K

Who knows what was packed into the "full" price, though?

A basic quote I got from Audi of Barrie this weekend (stopped in to check out a couple of cars as we passed through) included by default:
$749 New anti-theft program, 36-month term
$175 Winter mats
$0 Audi Barrie key chain (how kind)
$139 Wheel locks
$3,704 Other Dealer Options

The two legitimate accessories were marked up from Audi's listed prices, I suspect that $750 is for window etching rather than, say, LoJack, and although the $3,700 in "other dealer options" definitely included the $2,100 PDI fee, there's no telling what the other $1,600 was for.

Just dropping what was presumably a "Dealer's second cottage fee" could have been framed as a 2.5% discount, even though "Not charging me for things I don't want and may in fact be imaginary" isn't what most of us would call a discount.

Eh. If I didn't enjoy the process, I wouldn't be forever helping other people buy cars. It's the only part of my life where I can indulge in a bit of "I'm not happy until you're not happy" without feeling bad.

EDIT: Ah, US makes sense too. IIRC, the Allroad was recently called out as the highest-margin mass-market car in the US, at 10%. One presumes that the regular A4 isn't far behind.

VM

Surely they let you take that off... or is it that once the car has been ordered with winter mats, oops, they're attached to the car?

(and surely I can't be the only person in Canada to have gotten an A4 without winter mats?)

SNGGA

Can you ask them to take those default options off? Is it possible to go line by line of the BS fees the dealers add and ask them why and tell them to take it off? I think each dealership is different in terms on how they charge these "fees"

CDNAudi_B9

Yes, you can. If you look at all of the fees carefully you can ask them to justify and have them waive it/exclude it. The fees that I got removed/waived:
- Fuel $90 (I told them they can give me the car with an empty tank; they filled it up (obviously) and didn't charge me)
- Other Dealer Options $269 - Winter mats and phone connection cables. They waived it after I said they can keep it and I'll pick it up from another dealership)
- Audi anti-theft $195 - it's literally a sticker they put around the car to identify your car in a chop shop (I told them at that point insurance would step in anyways so don't need it - they still put it on but didn't charge)
- PPSA due on delivery $51.50 (I told them I could register it myself on their behalf if they would like - they declined and waived it)
- Admin Fee $388 (I told them I can fill out the paperwork myself - they pushed back but agreed to waive half)

Obsidian3K

The only truly mandatory fees (in the sense that the dealer is passing them through from the government) are:
Air Conditioning Tax: $100 (Ontario, seems to be same in most provinces)
Tire Recycling Fee: $27 (Ontario, not sure about other provinces)
OMVIC Fee: $10 (Ontario, other provincial regulators may also charge fees)
PPSA Fee: $51.50 for loan registration (Ontario, exact fee varies by province and loan term)
Vehicle registration fee: $32 (Ontario, plus plate and sticker if applicable; varies widely by province)
Sales tax: 13% HST in Ontario (varies widely by province)

Anything beyond the above (like CDNAudi B9's examples) are either products/services the dealer is choosing to offer, or straight dealer profit. The more of these optional items you push to have removed, the more reluctant the dealer will be to offer you a big discount on the car itself. They are in the business of making money, after all.

It sounds like you're in the purchase process, so if you're in any doubt about anything, feel free to PM me. I help friends and family buy cars regularly, and I'd be happy to provide input on on anything that a dealer says or offers.

eiskafee

SO they replaced the tire with a new one, repaired the RIM (it's looking good and not noticeable unless you're sitting and looking directly at it). They only gave a verbal guarantee that it won't be an issue when returning the vehicle (I do have a repair receipt though). ON ASKING, the manager gave me a $200 services/parts credit. They also provided a valet service i-e picked up and delivered car to my home same day.