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RE: New car discounts??



You guys are making me feel a little better about what I did Friday, then.

I put my deposit down on an A4 2.8Q (5-spd manual.)  I had to order because
I wanted Onyx interior with the Santorin blue.  The dealer will let me buy
it for 6% over invoice.  I tried to get an extra set of snow wheels, but
that failed.  However, they'll let me buy a set through Tire Rack for their
price.  They'll even let me swap the new 10-spoke sport pkg. rims with the
old 7-spokes if they still have the '99s on the lot.  I guess I didn't do
too badly then.  Now, if I can sweat it out for a few months!

dB  

>>-----Original Message-----
>>From: Michael Williams [mailto:mike@urquattro.com]
>>Sent: Sunday, August 15, 1999 9:58 PM
>>To: Jeff Goldberg; Dan Simoes; qlist
>>Subject: Re: New car discounts??
>>
>>
>>Jeff Goldberg decided to speak these words:
>>
>>>Looks like the best you can do in this area is about 5% 
>>above invoice.
>>>Pretty decent discount for a hot selling car. Also looked at 
>>Maximas. Most
>>>dealers refuse to discount at all. What a joke!
>>
>>
>>Ya know....
>>
>>As a VW/Audi salesman, i have a pretty unique perspective on 
>>the buying 
>>and selling experience.  That said, 5% is pretty good, i dont deal in 
>>percentages, i have seen A4's go for as little as 500 over 
>>invoice at my 
>>store, although 1500 is the usual low deal...
>>
>>but as far as sticker price being what you pay, big deal...  
>>That is what 
>>the MSRP is, as in manufacturers suggested retail price.  
>>Yeah, i have no 
>>problem with haggling a bit, it gives me something to do, 
>>but, i have had 
>>people offer me, in all seriousness, invoice cost for some cars.  Im 
>>sorry people, but i make my living off of the profit on these 
>>cars, which 
>>surprisingly, isnt all THAT much.  
>>
>>I actually make alot more selling VW's than audis.  That is 
>>the way that 
>>the commission schedules work out....  For me, a good deal is if the 
>>dealer gets about 1500-2000 dollars profit off of a car, 
>>depending on the 
>>car...that gets some sort of discount for the customer, and 
>>some sort of 
>>profit for the dealer.  It costs ALOT to own a dealership.  A 
>>statistic i 
>>learned:  for each person, buyer or not, who walks through 
>>the door, it 
>>costs about 600 dollars or so for that person...  Figure that 
>>maybe 40% 
>>on a good day will actually buy a car, that doesnt leave much profit 
>>margin does it?  Figure that the salesman gets 25-30% of the 
>>gross, and 
>>then paying the manager part, the general manager part, the finance 
>>manager part, any bonuses on top of that.  Then you have to pay 
>>secreteries, book keepers, and whoever else works there...
>>
>>Some cars will be given away.  Brand new models, silver cars, 1.8t 5 
>>speeds w/ sport package, A4 Avant 1.8t's and silver jettas, 
>>and VR6 VW, 
>>will not.  We want sticker on any silver jetta, no matter what the 
>>equipment level.  And we get it.  If you want a color or something 
>>specific, especially if it isnt all that common, be prepared 
>>to pay the 
>>initial asking price for it... But, if you are willing to 
>>take something 
>>less hot, and something that is in stock, then we can talk a 
>>good deal...
>>
>>That is the inside from where i sit...i make my money selling 
>>cars, and 
>>when i ask above sticker, it basically asks the customer to 
>>pay for my 
>>time with them.  I spend about 75% of my day talking to 
>>people who have 
>>no intention to buy a car, who want to just play around with 
>>the cars, or 
>>waiting for people toshow up.  If im lucky, i have maybe 4-5 good 
>>prospects a WEEK.  If they all ask invoice, i make 150 a pop...that 
>>doesnt make too much money for me does it?  Im sorry, but 
>>selling cars is 
>>still a business and money still has to be made...
>>
>>if that pisses you off, sorry.....i will give good deals to 
>>people i know 
>>and are friends with, that is no problem, but i cant give 
>>every car away. 
>> I would simply starve if i did....
>>
>>
>>
>>later...
>>
>>Michael Sheridan Williams
>>San Francisco, CA
>>ICQ# 11740998
>>1983 UrQuattro, MC--1.8 BAR, borla, 2B Coilover, 16x7.5 OZ 
>>Mito's w/ Yoko 
>>A520's, Cibie H4/H1's, K&N (blah)
>>1985 4000S Quattro, Koni Yellows/Coilover (2B), strut brace, 
>>Sport 8000 
>>Tires, K&N
>>http://members.aol.com/daserde2
>>