Invoice Cost vs. Selling Price vs. MSRP – Advice?
#1
AudiWorld Member
Thread Starter
Invoice Cost vs. Selling Price vs. MSRP – Advice?
Starting to shop for a 2018 (or 2019) A5 SportBack. In the "Prices Paid for A5 SportBack” thread on this forum I see people paying about 10% off MSRP. But when I use the Edmunds website https://www.edmunds.com/tmv.html it tells me that invoice price is about 6.5% off MSRP. Are people really buying under invoice, or is the Edmunds calculator wrong? I expect the dealer to make a profit but obviously don’t want to overpay. Any advice on the buying process?
#2
AudiWorld Super User
Ahhh, the wonder of the pricing on a internet forum. If someone post a discount of 10% off, there is always someone else who claim to be able to top it. As you know, one must take what they read on a forum with a grain of salt, sure, there are double digit discount to be had with these cars but most of the time, there are compromise made. It also depends on your location and the competition in your area and how much time you are willing to spend. I can safety say that in the Northeast, without much of an effort, one can buy a in stock 2018 A5 at about $500 to $1000 below invoice. The S5 might be discounted a bit more. I am sure if you spend days hunting for a bargain and you are willing to travel further out, you might save another $500 to $1000, but it really depends on how much your time is worth. My philosophy is that the price should reflect a small profit for the dealer, everybody walks away happy. I want to keep a good working relationship with my dealer after the purchase, In this day and age, they have your whole car buying history on their computer.
#3
AudiWorld Senior Member
The price of the car is not where dealers make their money. If the dealer needs to sell a car they will go as far as they need to below invoice to do it.
My Q5 was 12% off MSRP, after including incentives from AFS in May. My S5 was 8.5% off MSRP out the door in Nov '17. 6.5% should be an easy number to hit.
My Q5 was 12% off MSRP, after including incentives from AFS in May. My S5 was 8.5% off MSRP out the door in Nov '17. 6.5% should be an easy number to hit.
#5
AudiWorld Senior Member
My audi dealer said the AVERAGE interest rate on a car they sell is 9% - americans have terrible credit!
#6
AudiWorld Super User
Yes, but not from the selling price, they make money from Audi for hitting sales numbers and money off of the financing terms. Profit from the actual sale of a new car is just gravy.
My audi dealer said the AVERAGE interest rate on a car they sell is 9% - americans have terrible credit!
My audi dealer said the AVERAGE interest rate on a car they sell is 9% - americans have terrible credit!
#7
AudiWorld Super User
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#8
AudiWorld Super User
Yes, but not from the selling price, they make money from Audi for hitting sales numbers and money off of the financing terms. Profit from the actual sale of a new car is just gravy.
My audi dealer said the AVERAGE interest rate on a car they sell is 9% - americans have terrible credit!
My audi dealer said the AVERAGE interest rate on a car they sell is 9% - americans have terrible credit!
#9
Club AutoUnion
3.09% for me in early June, with 55% of the cost down, financing for 36 months and a TransUnion score of 826. Through US Bank. AOA wanted some stupid ridiculous rate.
#10
AudiWorld Super User
Audi's rate is almost always higher than a traditional bank. Sometimes the incentives available more than make up for it, sometimes they don't