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Re: New car discounts??

Thanks for your perspective, Mike....very interesting.  As a buyer, I don't
worry _too_ much about the numbers...to me, it's a waste of time to argue
over a few hundred bucks on a $25K+ product.  That being said, I DO expect a
certain level of service from my salesperson when I buy a car worth more
than $25K.  The guy I dealt with when I bought my A4 5 months ago really
bent over backwards, IMO, to make sure everything was right and that my time
wasn't wasted fuddling around with paperwork or sitting around and waiting
for god knows what.  The buying process is so much more pleasureable with a
good salesperson.  In fact, I would feel guilty about giving him a hard time
on the price when I buy my next Audi.  Considering this will probably be an
S4 or TT, it probably wouldn't matter anyway, right?  ;-)

Bob W.
'99 A4 1.8Tqms, APR 1 bar, Brullen

-----Original Message-----
From: Michael Williams <mike@urquattro.com>
To: Jeff Goldberg <jeffgold@erols.com>; Dan Simoes <dans@audifans.com>;
qlist <quattro@audifans.com>
Date: Sunday, August 15, 1999 10:25 PM
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....
>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