Questions by Prospective S5 purchaser
 

Greetings,

I've put down a deposit for a 2013 S5 with the following: prestige package, auto transmission, adaptive damping suspension, sports differential. It should be at the dealer in one month. I currently have a BMW 330 with manual, and no I-Drive. So the S5 has a lot of bells and whistles that my BMW does not have. When I inspect the car before signing for it, what should I look for to make sure everything on this works? Did any of you find that the car had some problems that you noticed only after you took it home, that could have been spotted at the dealership?

Second question: Any thoughts on the merits of adding stone guards?

Third and final question: I'm getting this for $500 over invoice, but invoice includes $195 for dealer inspection, and about $800 in what appear to be advertising charges called SCAD2 #350, and AoA LA DAA #351. Is this a good price for this car?

Thanks for all your help.

Before taking delivery and handing over your money, take the car for a test drive and make sure it runs, rolls and brakes as it should. Then, park it somewhere away from the dealership and take your time to look everything over closely. If you find something troubling, demand the dealer correct it 100% to your satisfaction BEFORE you take delivery or pay. Now, if you get it home and notice something, there's always the warranty so you are generally protected.

Audi's generally have a 6% margin over invoice, and I've heard the the manufacturer then pays a "hold-back" of 3.75% to the dealer once the car sells. Depending on demand, you can get $500 over, flat invoice and even a couple thousand under invoice. In my opinion, $500 over invoice for a special order car is a good deal, but the $195 inspection fee and $800 in advertising fees is pure dealer profit. It's total BS. You may find too that the dealer will charge you a dealer doc fee of $500 or more, which again is total BS. Again, this is profit. If you have already signed papers agreeing to the sales price, there's not much you can do, unless you are willing to forfeit your deposit and start the negotiation over. You should try getting the dealer to knock these fees off because in this economy, the customer is king. If they think you are willing to walk away from the deal, they'll deal, but if not, probably not.

Good luck and enjoy one sweet ride.

One last thought... check your state laws... certain states allow a consumer to unwrap a written agreement within a specified number of days, like 3 days. If such a law exists and you are within the period, you could contact the dealer and say you want out because of all the fluff charges they have built in. Deliver that notice promptly and in writing. That will give you the leverage you need to renegotiate the deal. If you can cancel the deal, try negotiating via the internet (this is important) with 2 or 3 audi dealers in your area for the best deal. The internet department has more latitude in pricing than if you just walk in. Competition is good and ensures you get a fair deal.

I'd be interested in what other Cali laws apply. The only thing I was told by my dealer was that the deposit is 100% refundable in Cali. I agree with fourcircle's assessment that $500 over invoice is possible (and not a dealer giving you a great deal) if it's over other what are considered BS fees. But I think down in SoCal, those ad fees may be actual costs the dealer incurs. Whether they want to pass it on to you is a different story.

Aggiealum has a good point. Try price building the car on edmunds.com after putting in your zip. If the ad fees show up on edmunds, they are no doubt legit. In my state, ad fees on Audis are not invoiced to the dealer nor passed on to the consumer. However, dealer doc fees are increasingly the norm and range from $199 to $699. In negotiations, what maters is the "out the door price". Compare that among dealers to get the true picture (and maintain your sanity).

All great advice on here as usual. If you further search, you'll find other great advice from many others. Helped me when ordering my S5.

Sounds like you've already cut a deal and possibly placed a 1k deposit. Tough to walk away from 1k if you don't like the dealer add ons. My dealer insisted on 1k also but I insisted on $500 and eventually they agreed to make the sale.

The internet is KING. Here in the NY/NJ/CONN tri-state area, there are nearly 30 Audi dealers within reasonable driving distance. But you don't have to go to most of them to get your best deal, just let them think you have or will. I knew which dealers in my area were pricing aggressively, and that's where I finally went, with '13 price guide in hand(someone on this forum provided) and knowing exactly the options/color I wanted.

All dealers tack on fees, keeping those to a minimum is key. I paid the dreaded $199 VIN etching fee. I knew it was BS and could have gotten it dropped, but I also realized I was getting a sweet deal and once I saw my special ordered baby, they knew I wanted out of there fast. I purchased nothing else in the Finance office. Don't let them sell you anything else, unless you really, really want it. Try to get AUDICARE thrown in, afterall, you'll getting a fully loaded beast. If they won't, wait until your 15k service to buy it and even negotiate then. Your 5k service is free/included.

Since it sounds like you've already gat a done deal, be prepared to have people stare, wave and give you the thumbs-up when driving this beast. It's a gorgeous car, joy to drive, and stands out over all the bimmers, in Los Angeles. Best of Luck.