I have scoured this site over the past 48 hours and while I have learned a lot I still can’t wrap my head around the math of how all the components come together. I consider myself a pretty decent negotiator, but I am really struggling to get any more movement on this deal. Have shopped 4 dealerships and this is the best I have been able to do, with one basically laughing at me to get a payment under $500 on this scenario. Would greatly appreciate any opinions, suggestions…
Audi Q5 Premium
Audi Incentives: 1750
39 Months/7500 miles
Drive off only down: Total $2144
$104 Tile and Reg
First month @ $499
Monthly: $499 (inclusive of 3% North Carolina tax)
Haven’t tried the MSD yet, but will ask them in my next round of negotiations.
The discount is just OK, I would shoot for at least 12% and consider going out of state for the deal.They dropped RV this month which hurts any deal. In SoCal the MF is .00034 so make sure to check with Edmunds if you are getting a base MF. You can see my deal from last month I signed, but SoCal and NC are different markets.
Here is a cargurus price analysis on a Q5 with the MSRP you posted. These price analyses are done on purchases, not leases, so you will need to find out what the incentive differences are between lease and purchase. The thing I like about dealers that use cargurus is that they should be used to customers who come back to them and say they want a deal with a “Great Price” according to the price analysis. In other words, they are paying to advertise on a site that compares their pricing to a benchmark, so they shouldn’t be surprised when someone asks them to get to that benchmark. The last lease I worked, I used requested quotes via TrueCar and kept changing the zip codes to cover the area I wanted to research, so that may be a good approach also.
I worked an Outback deal for my parents about a year ago. The MF was marked up to the max. I assured the dealer that my parents would qualify for Tier 1 rates, he said he could give them the base rate. His rationale was that before running a credit check, he would always rather quote with a higher MF and have the payments go down than bring someone in and have the payments go up due to less than ideal credit.
You could say something to the effect of “I’ve received other quotes with a lower MF and my research shows that with Tier 1 credit, which I have, the base MF is .00034. Please adjust the MF and resend the quote.”
Another follow up question here. The sentiment on this board is you should be able to get at least 10% off MSRP and ideally 12%.
I have continued to negotiate with my local dealer against offers from some places I really don’t want to drive to.
Anyways, I have asked for them to be about 9.5% below MSRP before Audi incentives with the buy money factor of .00034.
They claim to be higher volume than the other dealership (In DC area) that I have been talking with, but are giving me a sob story that they are going to lose “thousands” if they get to my offer stating every dealer structures things differently, ect ect.
Would they really be losing money at 9.5% below MSRP and using the buy MF? Should I call BS on them?
If they actually will lose money on this I don’t blame them and I will just walk away. I just want to know if I am being reasonable by going back to them and saying I know you aren’t losing money here.
And Im not sure the MF rate you have to check Edmunds for that. But the whole MSRP stuff, its dealer talk. Even though you may not wanna drive, you should continue to email all the dealers around to get the price you want. As it gets closer to the end of the month, someones gonna give.
Each dealer does have an acceptable amount they can go on the car, so some are willing to “lose” more than others to make the deals happen and get that extra sale.
They may indeed lose money on one specific vehicle, but there’s a reason that leasehackr’s get these deals. Based on incentive structures and manufacturer to dealer incentives that we don’t know about, it’s very difficult for us to know what a vehicle truly costs a dealership after holdback, etc. If the car has been sitting for a while, the dealership may want to move it because it’s costing them based on their floor plan. Dealers may also get a step structure bonus i.e. $500 incentive on every Q5 sold this month up to 20, then on 20+, that incentive moves to $1,000, so if you can pull them across that 20th Q5 at the end of the month, they may be happy to sell the 21st Q5 at a loss to get to the next step.
Trust the benchmarks that have been set and stick to your guns.
Then check somewhere else, but if you don’t want to drive then youll have to accept their best. That how it was in my area, thus I drove to DC.
You can only do as good as the dealer will allow.
Don’t go into the other dealers, call/emal and ask for the New Car Sales Manager and tell them your buddy got a deal for 12% off MSRP and point them to a VIN in their inventory and then tell them the MF and Residual Rate so it sounds like you know what youre doing.
It takes time but theres plenty dealers within 1-4 hour drive out there.