% Off MSRP for 2018 Q7
07-31-2018, 04:40 PM
#11
i read its 3.99% from audi and anything over is profit for the dealership. i called AFS and confirmed that there is no penalty for paying off the loan early. as soon as i get my 1st free payment from AFS next month, i will refinance with my credit union (offering under 3%). 5% interest is a joke for tier 1 credit applicants. the salesman said to wait 6 months to avoid kickback penalty for the dealership, but there is no way im paying 250 interest for 6 months which will negate the 1st free payment from audi
What recourse does the dealership have against the buyer for the penalty?
08-01-2018, 05:02 AM
#12
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thats assuming what the salesman said is true. the dealership wont say anything when u service ur car. if this happened, ud see threads how a dealership blacklisted ur vin and wont service ur car. u financed ur car with AFS, not the dealership
https://www.audiworld.com/forums/q5-...ealry-2887840/
Post #8
"Thanks everyone. I spoke to Audi FS today and loan can be paid off anytime without penalties. The delaer BS'd again about needing to wait 6 months. Will be paying it off by the end of the week."
Last edited by Road Pirate; 08-01-2018 at 05:06 AM.
08-01-2018, 05:17 AM
#13
AudiWorld Super User
the dealer ends up being charged back the incentives that applied to that deal. No recourse to the buyer per say, as there is no prepayment penalty to an end user, but it's a surefire way to burn up any goodwill from the dealer and wreck that relationship (if that sort of thing is important to you)
08-01-2018, 06:03 AM
#14
AudiWorld Senior Member
the dealer ends up being charged back the incentives that applied to that deal. No recourse to the buyer per say, as there is no prepayment penalty to an end user, but it's a surefire way to burn up any goodwill from the dealer and wreck that relationship (if that sort of thing is important to you)
08-01-2018, 06:11 AM
#15
AudiWorld Super User
This always sucks. You either have to keep a bad deal in hope that this will earn you a good will from the dealer, or swap for a better deal but possibly face retaliation from the dealer. That's why dealer/financial backdoor incentive deals are a bad idea for the end customer.
The way I personally do it, is simply be upfront with the client. At that point of the transaction, we've established rapport. I completely get that they want the incentive but want to minimize their interest exposure and I can easily show them how to do that. For me, and the dealership as a whole, the incentive does not matter. We still get paid the price agreed to. At least in our geographic area, I do not find such massive interest rate swings, now, between Audi and even credit unions. But that stuff can be very regionally based. Last year, those margins were definitely wider. I have found at least where I am, they have shrunken dramatically
08-01-2018, 10:34 AM
#16
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Well, this stuff is all customer facing - not all incentives are. I'd feel awful if I didn't mention it to a buyer, because at times it can be a lot of money. Ultimately whatever they choose to do is up to them as far as taking advantage of the incentives or simply going with a lower rate/cash. It's their transaction, their car.
The way I personally do it, is simply be upfront with the client. At that point of the transaction, we've established rapport. I completely get that they want the incentive but want to minimize their interest exposure and I can easily show them how to do that. For me, and the dealership as a whole, the incentive does not matter. We still get paid the price agreed to. At least in our geographic area, I do not find such massive interest rate swings, now, between Audi and even credit unions. But that stuff can be very regionally based. Last year, those margins were definitely wider. I have found at least where I am, they have shrunken dramatically
The way I personally do it, is simply be upfront with the client. At that point of the transaction, we've established rapport. I completely get that they want the incentive but want to minimize their interest exposure and I can easily show them how to do that. For me, and the dealership as a whole, the incentive does not matter. We still get paid the price agreed to. At least in our geographic area, I do not find such massive interest rate swings, now, between Audi and even credit unions. But that stuff can be very regionally based. Last year, those margins were definitely wider. I have found at least where I am, they have shrunken dramatically
08-02-2018, 08:43 AM
#17
AudiWorld Junior Member
Thread Starter
From Meyecul on another thread: "I discovered this very early on when I for a brief moment considered trading my 17 Q7 for an 18 Q7 simply for color change (had come across a gray w cedar interior that I loved). It's what happens when a $55k car climbs over $80K with options. The most interesting part is at the time the sales mgr sat across from me offering $50k on my pristine $82k car with 12k miles that was only a year old while at the same time would not budge more then 2% of on his. hahah. Funny how all the value in those options remains on the "new sale" yet somehow disappears when one takes delivery. Needless to say he saw my backside rather quick."
So, not everyone is able to get 10-12% off MSRP
So, not everyone is able to get 10-12% off MSRP
08-02-2018, 09:37 AM
#18
AudiWorld Senior Member
From Meyecul on another thread: "I discovered this very early on when I for a brief moment considered trading my 17 Q7 for an 18 Q7 simply for color change (had come across a gray w cedar interior that I loved). It's what happens when a $55k car climbs over $80K with options. The most interesting part is at the time the sales mgr sat across from me offering $50k on my pristine $82k car with 12k miles that was only a year old while at the same time would not budge more then 2% of on his. hahah. Funny how all the value in those options remains on the "new sale" yet somehow disappears when one takes delivery. Needless to say he saw my backside rather quick."
So, not everyone is able to get 10-12% off MSRP
So, not everyone is able to get 10-12% off MSRP
08-03-2018, 04:07 AM
#19
AudiWorld Junior Member
I have been actively trying to buy a Q7 for about three months now here in Central Illinois. Area dealers seem keen to want full MSRP minus any program discounts offered by Audi USA (eg no discount from the dealer). My online research suggests there is a built in 7.5% markup between invoice and MSRP. I have been offering them a couple thousand (~+2.75%) over invoice but they seem to prefer no sale vs any discount at all. It is all surprising and frustrating. Where I come from, everyone expected to pay less than MSRP. To demand MSRP was/is a polite way of saying they don't want your business. We own an S3 ('15) and have been very loyal to the local dealers service department. The service department is outstanding.
08-03-2018, 04:43 AM
#20
AudiWorld Senior Member
I have been actively trying to buy a Q7 for about three months now here in Central Illinois. Area dealers seem keen to want full MSRP minus any program discounts offered by Audi USA (eg no discount from the dealer). My online research suggests there is a built in 7.5% markup between invoice and MSRP. I have been offering them a couple thousand (~+2.75%) over invoice but they seem to prefer no sale vs any discount at all. It is all surprising and frustrating. Where I come from, everyone expected to pay less than MSRP. To demand MSRP was/is a polite way of saying they don't want your business. We own an S3 ('15) and have been very loyal to the local dealers service department. The service department is outstanding.
Forget those guys then. There are plenty of dealers in other areas which will give you 10% right now. The 7% you will save you can make it a road trip to fly over there and drive your car back.
