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How good of a discount off MSRP is good?

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Old 07-23-2016, 12:54 PM
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Default How good of a discount off MSRP is good?

I'm currently negotiating with a dealer that I don't feel great about, but I am getting what I think is a good discount off MSRP. Some tricks/non-truth's are being played as after we agreed to a price he said he forgot he had to add some extra options and use their financing at a pretty high rate. I can refinance, so not a big deal on the rate, and we are getting pretty low on the extra add-ons, so we are pretty close to the price I want, but I'm still not feeling good about the dealership. But I do feel ok with the deal. What is the minimum percent off MSRP (including add-ons like paint protection, etc.) would you need to do business with someone you don't feel good about? If it wasn't for the tricks, I'd pull the trigger now.

--UPDATED---

Sorry I didn't give all the details. I had not bought the car yet and didn't want to risk the guy reading this and saying "F that guy!" I really needed some advice and I got it on this forum. Thanks!

Anyway, I bought the car last night. The salesmen was actually pretty nice, but my guess is they offered me a deal and some manager changed his mind and said we need more $ from this guy.

The story goes like this...I negotiate 11% off MSRP. The options on the car are pretty rare in the region and I've talked to dozens of dealers. This car was perfect and gave me my 11% off sticker. First, they said the can give me that price, but we need you to use our financing at a high rate. They said I could pay it off or refinance any time, but they need that extra revenue to make this 11% possible. Not a big deal, so I agreed (i can refi). Then before I went down there I asked to clarify that the price is the price and there is nothing ELSE hidden. I was right to be suspicious because the reply was "oh I forgot we pre install lojack on all cars and I have to sell that to you for $800 or we can remove it but need to tack on an extra $800 if we remove it." So I say no, then they come back with $300 for the lolack. When I refused again, they said they need that extra revenue to be able to make the sell this low. In the end, I agreed to the 11% off MSRP and paid 299 for lojack (which I don't want).

I'm 99% sure lojack was installed AFTER I bought the car and was waiting. So I do feel lied to. I know lojack does not come pre-installed. I was also told the interest rate I was given (before I applied) was not the lowest rate Audi provides. I know this isn't true because I applied at another Audi a few weeks with excellent credit and the rate was half.

Finance then pushed HARD to sell me every other option she could think of. For example, when I declined Gap insurance she goes "but your down payment is really low, it would be a mistake not to get Gap on such a low payment." When i responded with "ok cool. lets double the down-payment!" she replied "no no no. don't do that. the payment is good as is, you are right you don't need gap. lets keep it the same."

My assessment is I got a great deal on a great unique car (packages wise) and they dealer was on a mission to get a few more bucks from me to make it ok on their end. Had they simply said "dude, i messed up and offered you the car too low. so sorry. can you please kick in a few hundred more?" I probably would have done it much easier. I don't like being lied to or tricked. Luckily I knew what they were doing, but still calculated that it was worth it and still feel that way.

Now its time to enjoy the car! Thanks!

Last edited by OhSee Dee; 07-24-2016 at 07:27 AM.
Old 07-23-2016, 01:04 PM
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Forgot to add, I was at 11% off, but I'm not at 10.5% off with the extras. Thoughts?
Old 07-23-2016, 01:08 PM
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Originally Posted by OhSee Dee
What is the minimum percent off MSRP (including add-ons like paint protection, etc.) would you need to do business with someone you don't feel good about? If it wasn't for the tricks, I'd pull the trigger now.
If you don't feel good about the dealer, don't do the deal. Of course that's easy for me to say because I have three Audi dealerships within 35 miles, (and I still got screwed on my last CPO buy). As far as discounts are concerned, Audi Club membership will get you 6% of MSRP if you have been a member for 6 months. Costco deal is similar I believe. Some dealers don't accept those programs and will still point their reptilian fingers at the MSRP.
Good luck.
Old 07-23-2016, 01:13 PM
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Didn't see that before I posted. I'd take the deal. Arguing between 11% off and 11 1/2% off on an A4 is silly, at least to me. Decline the paint protection, undercoating, Audi certified fuzzy dice and other nitwittery and just buy the car.
Old 07-23-2016, 01:15 PM
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A friend of mine has a good friend who is an Audi salesman. His dealership is quite a ways from where I live, so buying from him would not have been convenient. But before buying my A4, I asked my friend to get some information from his friend about what is the best possible deal I can hope to get without being shown the door. His friend suggested that 10% off was a good deal and anything lower than that would be questionable whether or not it would be worthwhile for the dealer to sell the car.

I ended up getting my car for $5k off MSRP, which came to around 10% off (MSRP was $50,240). There were no dealer add-ons, except for their $499 doc fee, which seems to be somewhat normal here in New Jersey.

I will add though that this dealer was very nice and easy to deal with, the salesperson was very professional (no games), and the dealer offers free weekly car washes for the life of the vehicle.
Old 07-23-2016, 01:21 PM
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Originally Posted by Diogenes
Didn't see that before I posted. I'd take the deal. Arguing between 11% off and 11 1/2% off on an A4 is silly, at least to me. Decline the paint protection, undercoating, Audi certified fuzzy dice and other nitwittery and just buy the car.
I can't decline any of the extras. Once I take the extras into account its 10.5% off MSRP. So sounds like I should do it.
Old 07-23-2016, 01:47 PM
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I've learned that the discounts offered will vary significantly based on region. The number and proximity of dealerships in the area also plays a big part. It seems that most people who have opined on the subject on the forum have suggested that 6-7% is pretty good, though some have said they got more than that. Invoice is apparently 7% below sticker. I got mine in Northern VA at 6.5% off. I probably could have pushed a little harder, but I needed a car. You may be able to do better.
Old 07-23-2016, 02:50 PM
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Anything 10% or over is a really good deal. I negotiated 12% but that's an extremely rare circumstance because it was the last day of the fiscal quarter and I was the last car they needed to sell to meet their quota. So don't go in expecting that unless you time it perfectly, I.E. go to the dealer the last day of December.
Old 07-23-2016, 03:13 PM
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Originally Posted by OhSee Dee
I can't decline any of the extras.
Why not? Have they been already done? Are you ordering the car or is it on the lot? The extras have nothing to do with MSRP, they are not from Audi. Dealers usually will send the car to a detailer shop to have them done and will charge you double the costs.

The only way to calculate MSRP is to go to Audi's online configurator and get the MSRP price there, then negotiate from the MSRP price.

If the extras have already been done that could suggest that someone had a deposit on the car and walked for whatever reasons and again if you were not going to buy the extras in the first place why pay for them.
Old 07-23-2016, 05:38 PM
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Originally Posted by KevinB656
I've learned that the discounts offered will vary significantly based on region. The number and proximity of dealerships in the area also plays a big part. It seems that most people who have opined on the subject on the forum have suggested that 6-7% is pretty good, though some have said they got more than that. Invoice is apparently 7% below sticker. I got mine in Northern VA at 6.5% off. I probably could have pushed a little harder, but I needed a car. You may be able to do better.
Yea, in nova i had to work really hard to get to 6% off.


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