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anyone work at a dealer here? question about supplier discount

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Old 04-30-2012, 04:11 PM
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Default anyone work at a dealer here? question about supplier discount

I've heard that now the dealer only gets reimbursed for 2% of the 4%. Is that true? Just wanted to verify, since the person who told me that was also a salesman full of b.s. otherwise.

Anyone have any luck getting the dealer covered portion of the supplier discount stacked on top of other discounts? Or is it reasonable to expect that? What I mean is if, without any knowledge of outside discounts, the dealer offers me invoice price on a car, could I negotiate to give me the 2% or 3% off the invoice price, and leave them at invoice price (net, after audi reimbursement)?
Old 04-30-2012, 04:16 PM
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sorry, i meant 2% of the 6%. (previously 3%/6% covered by audi)
Old 04-30-2012, 04:19 PM
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Isn't the supplier discount 6%? It's widely reported that the dealer gets reimbursed half of that by Audi. So, in theory you could get a car for invoice minus their half if the dealer was willing to do so.

Edit: No idea on the 2% vs. 3%. I would be suspicious though.

Last edited by Stereodude; 04-30-2012 at 04:21 PM.
Old 04-30-2012, 04:30 PM
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yeah, theoretically, but for some reason a lot of dealers aren't willing to do it. any reason why, other than them not wanting to discount the price? I'm wondering if I'm missing something that negatively impacts the dealer for selling it too low, or if the salesman is just too stupid to do the math and realize that they end up net zero difference, since audi will reimburse them back to whatever near-invoice price they quote me
Old 04-30-2012, 04:31 PM
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Originally Posted by Stereodude
Isn't the supplier discount 6%? It's widely reported that the dealer gets reimbursed half of that by Audi. So, in theory you could get a car for invoice minus their half if the dealer was willing to do so.

Edit: No idea on the 2% vs. 3%. I would be suspicious though.
also, how do you edit posts, lol? i can't seem to find the button for it. maybe i'm retarded.
Old 04-30-2012, 05:05 PM
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Originally Posted by waffles
also, how do you edit posts, lol? i can't seem to find the button for it. maybe i'm retarded.
You post in this thread requesting it and wait until you get granted edit rights.
Old 04-30-2012, 05:15 PM
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cool thanks
Old 04-30-2012, 11:46 PM
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Originally Posted by waffles
yeah, theoretically, but for some reason a lot of dealers aren't willing to do it. any reason why, other than them not wanting to discount the price? I'm wondering if I'm missing something that negatively impacts the dealer for selling it too low, or if the salesman is just too stupid to do the math and realize that they end up net zero difference, since audi will reimburse them back to whatever near-invoice price they quote me
You may be going to a dealer who doesn't participate in the program because they ****ing stupid. I'm sure there's a participating dealer in your area. There's a listing of participating dealers here: http://audisupplier.com/dealers.aspx

Every dealer in the DC Metro Area participates and trust me, I had no success negotiating any % off the then new 2010 S4. I was seriously the first one to order, but no budging. I ended up going to an out of State dealer where I got some % off. I ended up in an A4 with the same % off as it turns out.

Here's the way I see it regarding the breakdown for the Supplier Discount.

Option #1: You go in as a 'regular' customer. You negotiate them to $500 over Invoice. They get the difference between dealer cost (below Invoice) and the $500 over Invoice - say $1,500 to keep it simple. $1,500 profit they have to split with the Salesman.

Option #2: You go in with Supplier Discount. You get a discount of 6% and the dealer gets 3% of that back from Audi without impacting their allotment schedule or dealer money, since you're technically buying directly from AoA, not the dealer. They don't have to spend a dime of their money. They get the 3% between Invoice and MSRP w/out spending hours haggling the price. This is North of $1,500.

Obviously #2 is the better option for them. But again, if they don't participate, then it's their loss, cause you're gonna go to a dealer that wants to receive free money.

Last edited by UmIsThisThingOn; 04-30-2012 at 11:51 PM.
Old 04-30-2012, 11:57 PM
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oh sorry i mis-spoke, i meant dealers not willing to stack on the discount above a negotiated amount.

i had negotiated a dealer to $500 invoice without even mentioning the supplier discount. I then brought it up and asked for another $1100 off. 3% audi covers of the car (MRSP 56000) was about 1600, so $1100 off with the suppler discount leaves the dealer with about another 500 bucks.

Before: I pay $500 above invoice, dealer makes $500 above invoice
After: I pay $600 below invoice, dealer makes $1000 above invoice.

The salesman wouldn't do it. I don't know if I'm missing some nitpicky issue on how the supplier discount is used, or if the salesman is just ****ing retarded. Every time I tried to explain, he would pause and say "sir, you said you have the supplier discount, so we are willing to honor the discount and give you 6% off..." eventually I got tired of banging my head against the wall and hung up.
Old 05-01-2012, 03:10 AM
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Originally Posted by UmIsThisThingOn
Option #2: You go in with Supplier Discount. You get a discount of 6% and the dealer gets 3% of that back from Audi without impacting their allotment schedule or dealer money, since you're technically buying directly from AoA, not the dealer. They don't have to spend a dime of their money. They get the 3% between Invoice and MSRP w/out spending hours haggling the price. This is North of $1,500.
Are you sure cars don't come from their allotment? A buddy of mine is using a supplier discount on his 2013 order and is waiting for the dealer to get an allocation to drop the order in.
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