Toecutter

Does the money from the purchase of Audi Care go to the dealership that sold it to you, to Audi North America, or is it divided between both?

If I were to purchase the plan at one dealership but get my car serviced at a different dealership, does Audi then reimburse the dealership that provided the service? If so, is the reimbursement rate the same as what a private party would pay retail or do they have an adjusted rate between manufacturer and dealer?

snagitseven

Audi Care is like any other Audi product the dealer sells - there's a retail price and a dealer cost. (Note that the profit to the dealer is very small, something like $50 or less).

The service agreement is good at any Audi dealer in the country of origin. When a dealer service dept. does the service, he is reimbursed by Audi on an agreed upon labor rate schedule. Parts are reimbursed at the dealer's original cost as well.

Even though the profit margin is very low, dealers like selling Audi Care as it keep the customer coming back to the dealer. Keep in mind this is a prepaid service agreement and not an extended warranty.

Foogie

I find it hard to believe that there is only $50 profit for the dealer. Most services average over $200 right? You can change the oil yourself when you buy oil at Advanced or AutoZone etc with the oil + filter deals for around $50. If you want to get the car inspected bring it to the dealer for "warranty work" like I did with my weather stripping that was coming off on three doors and they do the 50 point inspection anyway. Checked my brakes, tire pressure, filled fluids, for $0. Anyway, I think Audi Care is obviously not worth it if you're one to track your own oil changes and tire rotations. I'm not paying over $200 for that crap. But if you're a yuppy who knows nothing about cars it's probably a good deal .

moose_head

If you were going to go the dealer for service anyway, it's worth it. I don't think they market it as anything more than that. (For leases, it adds to the residual because it almost guarantees proper maintenance.)

snagitseven

Hard to believe, but true - the sale of the Audi Care agreement is not a profit maker for the dealer - the service costs that Audi reimburses to them under the agreement is. That's the hook for the dealer - not the agreement itself.

BTW, you don't have to be what you characterize as a "yuppie" to not be inclined to doing your own service on your car. I'm far from from being one of those and have a reasonable amount of knowledge about cars but have other things I usually prefer to do with my time (I do my own detailing though). I typically don't do my own plumbing and electrical work in my house either. I would bet most Audi owners rely on pros to maintain and repair their cars. And electricians for their house. Not all non-self-servicers can be yuppies.

My rule of thumb on Audi Care:

- If you do your own servicing, it's probably not a good deal.
- If you use an good indy shop, it will be roughly a break-even cost-wise.
- If you use the dealer, it's definitely a good deal that is less expensive than what they charge for the covered service intervals (about 30% savings on average as I recall). I prefer to use the dealer rather than my indy shop when the car is under warranty as a one stop shop and to avoid any possible finger pointing if something goes wrong. After the warranty, I switch over to my indy for just about all repairs and maintenance.

Toecutter

So if one were to negotiate on a car at a distant dealership, where one would not likely go for service after the purchase, then the dealership has little to gain by including Audi Care into the negotiations (other than making the purchaser think he got something for free when it simply means he got a few hundred dollars more off of the car sale price)?


If a local dealership regularly sends service coupons then the difference in price is even less. Also, if one doesn't keep the car for the full 45K miles term of Audi Care then he loses the value of that last service paid for under Audi Care.

snagitseven

Probably so.

But still a difference. The coupons I've received haven't added up to the 30% savings by a long shot.
No question if the owner will not use all the 15K, 25K, 35K and 45K services (or 4 years whichever comes first), it makes no sense to buy it.

UmIsThisThingOn

You can look at it that way. Or you can look at it as if you got something for free if they threw it in w/ the purchase. As long as you're satisfied with the 'out the door price' it's Saul Goodman.

I get those 'coupons' too. They're a joke at best and an insult at worst. If you added up all the services (15/25/35/45) with/without coupons and balanced that against the cost of AC, you're saving $300-$600 depending on your dealer's labor rate. If you have a DSG car it's even more because that individual service is very expensive!

Ultimately, it's up to you. Me, I get my meat hooks dirty and do all the tune ups/fluid changes/nods myself @ a local DIY shop, so I didn't get AC.

Toecutter

Good to know. I ordered a DSG.

That's the decision I'm weighing, as Audi Care did not figure into our negotiations but I anticipate the (distant) dealership will offer it to me at full price during delivery of my car.

I'm not sure if I will keep the car up to the 45K miles service or not. Do you guys know what dollar amount that last service is worth?

snagitseven

Not sure what the 45K entails on an S4; if plugs and a full tune are included, figure at the dealer about $450. If not, about $280 or so. Ridiculous, I know, but it is what it is and it's what all the dealers charge.