March 8 Configuration Lock Tracking (Non Edition One)
#61
AudiWorld Member
I agree somewhat with both of you. I’m anxious to just get the car and get the deal done. One would agree that the dealers have some right to sell at what ever price they choose, on the other hand, Audi set the price in the introduction as if that was the price $74,800-86,700. I might be naive, but I would guess there is a very firm understanding between the dealer and the manufacturer.
Otherwise, what would stop the (greedy) dealers from pricing the cars well above the MSRP, thus encouraging further reduced sales plus the damage to the brand than the 204 rating has done?
Otherwise, what would stop the (greedy) dealers from pricing the cars well above the MSRP, thus encouraging further reduced sales plus the damage to the brand than the 204 rating has done?
#63
AudiWorld Member
Join Date: Dec 2018
Location: Coachella Valley, California
Posts: 178
Likes: 0
Received 0 Likes
on
0 Posts
This is not true at all. It is well known that Ferrari, for example, prohibits dealers from selling new cars above MSRP. This has lead to the fairly universal practice, among Ferrari dealers, of selling new cars to their best customers, having them drive them around for a couple of months, and then selling it back to the dealer so that the dealer can then sell the car as an "used" car with low mileage at way over MSRP. In fact, to become a "best customer" you need to buy one or more of these marked up used cars.
#64
I'm suspecting that Audi is requiring Dealers to sell the car to reservation holders for the MSRP. When I told my dealer that the car was coming too soon and would they prefer that I cancel, or let the car come to them, their reply was they wanted the car to come to them and would I please let them change the order to a more generic spec than what I had (this was before lock). I said OK. They did so and said they would "take care of me" on a reorder. I gather from this that the Dealers will be able to mark up cars that are "not taken" by the person placing the order and that they are planning to do so. Whether or not the market will support this remains to be seen.
#65
AudiWorld Member
Join Date: Dec 2018
Location: Coachella Valley, California
Posts: 178
Likes: 0
Received 0 Likes
on
0 Posts
I'm suspecting that Audi is requiring Dealers to sell the car to reservation holders for the MSRP. When I told my dealer that the car was coming too soon and would they prefer that I cancel, or let the car come to them, their reply was they wanted the car to come to them and would I please let them change the order to a more generic spec than what I had (this was before lock). I said OK. They did so and said they would "take care of me" on a reorder. I gather from this that the Dealers will be able to mark up cars that are "not taken" by the person placing the order and that they are planning to do so.
Whether or not the market will support this remains to be seen.
Whether or not the market will support this remains to be seen.
I remember in the late 1990's when it was not uncommon for the dealers of luxury vehicles such as Cadillac (Cadillac was still considered a luxury vehicle) and BMW pasted an MSRP increasing "Market Value" sticker next to the Monroney sticker. When asked "are you out of your f___ing mind," dealers would immediately remove the Market Value sticker if it meant making the deal. I just cannot imagine a dealer trying to markup the MSRP of the e-tron.
Time will tell. I am looking forward to learning the details of the first actual lease deals.
#66
Actually, the Dealer increased the spec and cost, adding things like the "washing wipers", protection package and 22" wheels. It was already Prestige. The biggest change was from my Siam Beige over Brown to White over Black. My disclaimer about market support was my back-handed way of saying that I agree with your postulation of a soft market. There might be a small number of cars sold at a premium at launch, but I don't see how that is sustainable. The i-Pace forum reports that there is a full sales year of inventory, at current sales rate, of 2019 i-Pace's at dealers (aggregated across the country) and production of Model year 2020 is about to begin. Many of the Jag models, including the i-Pace, are getting a factory $5K discount or 0% financing incentive. Some SoCal dealers have almost 40% of their inventory as i-Pace's. Their speculation is that the i-Pace will be awarded "Car of the Year" at the NY Auto show. If that happens, but sales don't get a bump, further discounts are almost certain. That will have a flow-on effect on Audi e-Tron sales. Speculation is that EV sales were accelerated because of the rush of buyers to get the full EV tax credit for Tesla, and there are not a lot of EV buyers waiting in the wings, at present. I asked a Jag i-Pace salesman why their residuals were so low for lease deals and his reply was that EV resale values are low because of the rapid improvement in technology. Tesla is now leasing, but I haven't looked at their residuals.
#67
AudiWorld Member
Join Date: Dec 2018
Location: Coachella Valley, California
Posts: 178
Likes: 0
Received 0 Likes
on
0 Posts
Well said.
Actually, the Dealer increased the spec and cost, adding things like the "washing wipers", protection package and 22" wheels. It was already Prestige. The biggest change was from my Siam Beige over Brown to White over Black. My disclaimer about market support was my back-handed way of saying that I agree with your postulation of a soft market. There might be a small number of cars sold at a premium at launch, but I don't see how that is sustainable. The i-Pace forum reports that there is a full sales year of inventory, at current sales rate, of 2019 i-Pace's at dealers (aggregated across the country) and production of Model year 2020 is about to begin. Many of the Jag models, including the i-Pace, are getting a factory $5K discount or 0% financing incentive. Some SoCal dealers have almost 40% of their inventory as i-Pace's. Their speculation is that the i-Pace will be awarded "Car of the Year" at the NY Auto show. If that happens, but sales don't get a bump, further discounts are almost certain. That will have a flow-on effect on Audi e-Tron sales. Speculation is that EV sales were accelerated because of the rush of buyers to get the full EV tax credit for Tesla, and there are not a lot of EV buyers waiting in the wings, at present. I asked a Jag i-Pace salesman why their residuals were so low for lease deals and his reply was that EV resale values are low because of the rapid improvement in technology. Tesla is now leasing, but I haven't looked at their residuals.
#68
AudiWorld Senior Member
I suspect that Audi will do OK by just diverting their production away from the US. We are in a strange environment right now, but the rest of the world is charging ahead (pun intended).
#69
AudiWorld Member
Thread Starter
A number of us had our configurations locked on March 8. I thought it might be interesting to see how those deliveries are coming along. For example, I have a Prestige that locked on March 8 and went into gearing up for production several days later and still is in that status. Audi customer support (not the website) gave me a production date of April 5. I have read at least one person with a March 8 lock date is already shipped. The website seems to lag updated info. Tell us what you know!
#70
Club AutoUnion
My order changed to "Leaving the Factory" today, May 15th.