[urq] urq Digest, Vol 34, Issue 1

[Wylie Bean]

I don't know about that.  The dealers only got to bill about 1/2 of
"book" time anyway for scheduled maintenance, and it's still that way
for warranty, so not much will change there as far as money to/from
dealers is concerned.  I actually believe you'll still see people buy
that option up-front on the majority.  The cost is less than half of
what it would cost to have the work done by the dealer if you had to
pay for it per-scheduled-visit.  When it all boils down to it though
really Jim, you know as well as I that it was never "complimentary" to
begin with.  The cost was built-in somewhere, just as it is
with -anything- in life. (Sorry, my economics training is battling its
way into this discussion)  This way Audi can get away with not raising
prices on their cars as much as otherwise would be necessary due to
$/Euro exchange and still offer savings up front to the customer.  In
my experience selling them for 2 1/2 years, today's Audi buyer isn't
making their decision based solely on free maintenance anyway.  It's a
nice bonus, but if you put a chart in front of most of them comparing
up-front cost to pay now versus pay later, most of them are smart
enough to realize the savings and will opt for it.


----- Original Message ----- 
From: "Pasqualoni, James E" <james.pasqualoni at gs.com>
To: "Wylie Bean" <theringmeister at triad.rr.com>; <urq at audifans.com>;
<hmarcnguyen at netscape.net>
Sent: Tuesday, August 01, 2006 12:48 PM
Subject: RE: [urq] urq Digest, Vol 34, Issue 1


So then, Audi is not only screwing their customers, they're screwing
their own dealers!!!  Essentially taking money out of their pockets
since people won't be maintaining their cars to nearly the same
standard
as if all schedule maintenance were complimentary.  This can't add up
to
a better client experience IMO.

-----Original Message-----
From: urq-bounces at audifans.com [mailto:urq-bounces at audifans.com] On
Behalf Of Wylie Bean
Sent: Tuesday, August 01, 2006 12:44 PM
To: urq at audifans.com; hmarcnguyen at netscape.net
Subject: Re: [urq] urq Digest, Vol 34, Issue 1

Marc wrote:
>
> Message: 4
> Date: Mon, 31 Jul 2006 23:28:42 -0400
> From:
> Subject: Re: [urq] What is everyone's opinion about Audi's parts
> To: urq at audifans.com
> Message-ID: <8C88331B928E21D-174-14594 at mblkn-m13.sysops.aol.com>
> Content-Type: text/plain; charset="us-ascii"
>
> Steve wrote:
>
> > FWIW, I think that I also talked a neighbor out of getting a new
A6 yesterday.  He came over to ask about maintenance
> > costs, etc., with Audis.  I told him about the fact that Audi has
just stopped covering maintenance items on new '07
> > cars, and that with what the local dealers charge for those kinds
of things, it will likely make a BIG difference during his
> > ownership of the car.  He was under the impression that Audi still
had the bumper to bumper coverage.  Another
> > neighbor had thousands of dollars of repairs covered by Audi (lots
of brake and suspension issues) that would likely no
> > longer be covered.  He loves the car, but won't buy another for
fear of having to pay for the same issues. I doubt
> > that those sales will ever come back.
>
> I pretty much agree that maintaining Audi's new or old is not an
inexpensive proposition, but just wanted to clarify that the inclusive
maintenance part of the bumper-to-bumper warranty is going to be an
"option" starting in '07.  From what I have been told by a couple of
the
local ACNA dealership sponsors, adding maintenance to the 4 yr/50k
warranty is going to be something like $450.  I still think it will
have
a negative impact on sales and perception, but it's not completely
gone.
>
> Marc
>

I'm not here to blow Audi's horn, but I'd have to strongly agree with
Marc here.  Firstly, the maintenance program WILL be offered as an
option on all Audis for '07.  The price of the plan will be
vehicle-dependent.  In fact, Audi gave it away to the first 500 people
that bought/ordered Q7s if I recall.  I don't think it's more than
$550
on any vehicle, with A3s and A4s possibly being $450 as Marc so
pointed
out.  It's a cost-cutting issue for sure, but the additional cost of
the
program will surely still put the Audi at a lower price-position than
competitors from BMW and Mercedes.  BMW is still touting theirs, but
they are still in a position to offer it as their sales have continued
to grow while Audi had an off year last year and parent-company VWAG
is
in the red like many makers.  Mercedes dropped their maintence 2 or 3
years ago if I recall.  Secondly, with regard to what Steve wrote
about
Audi covering the cost of brake and suspension issues going
away....that's flat-out incorrect with regard to the maintenance
program.  Those are warranty issues, not maintenance, and that
warranty
is not going away.  It's still a bumper-to-bumper protection
plan/warranty...it simply will not include scheduled maintenance as
part
of the coverage at no cost.

Wylie Bean
TheRingmeister at triad.rr.com
90 Cq
99.5 A4 Avant 1.8Tq
01 allroad q 2.7T

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