How much off sticker price?
 

Hey guys, I m looking forward to join the Audi club.

I am looking at a 2019 S5 SB. With a sticker price around $66k. This will be my very first time buying a new car. I understand it's a bad investment but I feel like it is more trouble-proof with the warranty..

How much off sticker price should I negotiate for?

It all depends on the dealer but I always shoot for 10%. I think it's a good number for both the buyer and the dealer. They make money and you get a decent deal.

I received 6% off on a 2019 S5 order without too much haggling. I probably could have done a little better, but I would think 10% off on a 2019 would be difficult for now.

10% off a 2018 maybe if the OP is in the location with lots of competition. For a 2019, depending on the OP's location, I would shoot for 7-8%

Invoice is reduced this year vs previous years, and is, and has always been significantly less than double digits (I wish!). So where is the dealer "making money" on the deal here? If there are afterm,arket purchased (AudiCare, warranty) then all that's doing is evening out the negative they lost on the front end.

The dealer make their money by manufacturer kickback, hidden factory incentives and bonus from Audi.

Except that's if, and only if, a dealer hits their quaterly business plan from Audi, it is not on a per transaction basis. This is Audi, not GMC at the end of the day

There are no "hidden incentives" that Audi ever offers to a dealer,. there is bonus money paid quaterly based on performance and surveys, and dassit

All it takes is one customer not giving a perfect score on the satisfaction survey and the dealer looses most if not all of the incentive money from Audi. At a 10% discount the dealer is selling the car well below his cost. How do you expect them to pay the staff at that rate?

it's not quite that dramatic (I'm on the dealer side of the equation), but it's not far from reality

With so much pricing info out there on the internet, the dealer profit off a new car is getting smaller and smaller. That is why all dealers try to make it up on the back end of the deal, i.e., extended warranties, wheel insurance and maintenance plans. The dealer also look at the overall picture of the business as well, selling a car usually means that the owner will series their car there, after all, the service department usually makes more money than the sales department. In the end, car manufacturers will always find a way to make sure that their successful dealer make money somehow.